Asia/Pacific News
ConocoPhillips, PetroChina Make Exploration Deals
ConocoPhillips [NYSE:COP] says it has reached agreements allowing PetroChina Company Ltd. (PetroChina) to acquire an interest in two Western Australia exploration assets.
The two parties will also enter a Joint Study Agreement to explore marine shales in the Neijiang-Dazu Block in China's Sichuan Basin.
"ConocoPhillips is pleased that PetroChina has recognized the significant resource potential and value of the Australian opportunities," said Don Wallette, executive vice president of Commercial, Business Development and Corporate Planning at ConocoPhillips.
"Likewise, ConocoPhillips recognizes the Sichuan Basin as having some of the most prospective marine shales in China and looks forward to working with one of the world's leading energy companies."
In Australia, PetroChina will acquire a 20 percent interest in the Poseidon offshore discovery in the Browse Basin and a 29 percent interest in the Goldwyer Shale in the onshore Canning Basin, assuming the agreements receive all necessary approvals.
"This is a great opportunity for ConocoPhillips to cooperate with PetroChina in order to study the potential for unconventional resource development here in China," said Jim Taylor, president of ConocoPhillips China.
"We believe that the cooperation between the two companies will form an important driver in promoting clean energy supply to China and contributing to the country's transition into a clean energy economy."
China has the world's largest shale gas reserves, and the energy source could help curb the nation's use of coal, which is a major source of greenhouses gasses, but developing the shale resources is likely to be difficult, the science journal Nature reports.
