BP Signs Major Gas Production Contract

Published at 05:44PM - 01/09/16

BP has signed a second production sharing contract (PSC) with China National Petroleum Corporation (CNPC) for shale gas exploration, development and production.

The contract marks another achievement under BP and CNPC’s framework agreement for strategic cooperation signed in October 2015 on unconventional resource exploration and development.

“We are pleased to be making further progress in our strategic partnership with CNPC and deepening our business in China. This second shale gas PSC in China builds on the successful cooperation we are already seeing with the Neijang-Dazu PSC signed in March,” BP Group Chief Executive, Bob Dudley, said.

BP Signs Shale Gas Sharing Contract with China

This PSC covers Rong Chang Bei in the Sichuan basin and was signed in the end of July, adding to a previous PSC signed in March for the Neijang-Dazu block.

“Combining CNPC’s operational expertise with BP’s technology and experience, we now expect to leverage the synergies between these blocks. This new PSC clearly demonstrates our continued commitment to invest in projects in China which will deliver long-term value to BP, to our Chinese partners and, most importantly, to the country,” Dudley added.

BP Signs Shale Gas Sharing Contract with China

The Chairman of CNPC, Wang Yilin, explained that the cooperation between the two companies covers upstream and retail in China, as well as upstream and trading overseas.

“Building upon the framework agreement on strategic cooperation signed last year, the two unconventional resource PSCs signed this year are manifestation of our deepening cooperation,” he said.

“By leveraging the parties’ complementary advantages, CNPC and BP will jointly realize the efficient development of unconventional resources,” he added.

China Remains a Key Market for BP

According to the President of BP China, Edward Yang, China remains an important market for both BP and the global energy market.

“With this new PSC sealed, we want to further expand our presence in this vital market,” he said.

“The two recently-signed shale gas PSCs not only underline BP’s continued confidence in the Chinese market, but also reaffirm our dedication to support China in unlocking its potential for more sustainable energy development,” he stated further.

Last updated on 08:15AM - 02/09/16