BP, CNPC team-up for second China shale PSC

China

LONDON, September 1, 2016 – BP and China National Petroleum Corporation (CNPC) have inked a production-sharing contract (PSC) for shale exploration in the Sichuan basin, BP chief executive Bob Dudley announced on Thursday.

The agreement marks the second tie-up between the two companies. In April, BP and CNPC signed a PSC for the Neijiang-Dazu block, a contract area of some 1,500 square kilometres in the Sichuan basin. The partnership follows the October 2015 framework agreement on strategic co-operation signed upon the UK visit of Chinese President Xi Jinping. CNPC is the operator in both basins.

“This new PSC clearly demonstrates our continued commitment to invest in projects in China that will deliver long-term value to BP, to our Chinese partners and, most importantly, to the country,” Dudley said in a statement.