Shell enters Chinese shale oil industry, launching joint study with Sinopec

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Shell enters Chinese shale oil industry, launching joint study with Sinopec GlobeBusiness

Shell confirmed the joint study agreement, but did not offer further comment.

Unlike shale gas resources, which are highly concentrated in Sichuan, most of China’s shale oil is trapped in eastern regions such as the Songliao and Bohai Rim basins. North China’s Ordos and Junggar basins are also believed to hold large shale oil resources, the experts said. In 2013, U.S. energy firm Hess Corp signed a production-sharing contract with PetroChina, CNPC’s listed arm, to develop the Malang block of Santanghu basin in the northwest region of Xinjiang, China’s first shale oil deal.Hess quit the block around late 2014 due to poorer-than-expected drilling prospects and as global oil prices plunged, said the MNR official.

 

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