CNPC, Italy’s Eni to conduct shale gas study in China’s Sichuan Basin

15 March 2013 03:35  [Source: ICIS news]

SINGAPORE (ICIS)--China National Petroleum Corp (CNPC) announced on Friday that it has signed a joint study agreement with Italian oil and gas company Eni to develop the Rongchang shale gas block in southwestern China’s Sichuan Basin.

The Rongchang block covers around 2,000 sq km, CNPC said in a statement.

The two partners will negotiate the signing of a production-sharing agreement on the block if the study shows that commercial production is feasible.

CNPC and Eni also signed an agreement for the Chinese firm to acquire a 28.57% stake in the Italian company’s subsidiary Eni East Africa for $4.21bn (€3.24bn).

Under this agreement, CNPC will indirectly acquire a 20% stake in area 4 at the Rovuma Basin in Mozambique, which was found to have large natural gas reserves.

Approximately 7,500 billion cubic feet (bcf) of gas has been discovered in area 4, CNPC said.

($1 = €0.77)

By: Fanny Zhang
+65 6780 4359

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