BP, CNPC to Jointly Explore Shale Gas in China's Sichuan Basin

In an expansion of their ongoing global partnership, BP and China National Petroleum Corporation (CNPC) on Wednesday entered into a framework agreement on strategic cooperation covering potential shale gas exploration and production in the Sichuan Basin and future fuel retailing ventures in China and other international partnerships.

The agreement was signed during Chinese President Xi Jinping’s visit to the UK in the presence of President Xi and UK Prime Minister David Cameron.  It is expected to add several billion dollars in future trade to BP’s already significant business with China, the British energy major said in a statement.

“CNPC and BP have enjoyed a longstanding, cooperative relationship involving projects both in and outside of China,” said Wang Yilin, CNPC Chairman. “This framework agreement on strategic cooperation will further facilitate our two companies’ joint efforts in exploring opportunities on a global scale, be conducive to enhancing cooperation, and take our strategic partnership to a new height.”

In addition to these agreements to explore opportunities within China, BP and CNPC have agreed to explore oil and LNG trading opportunities globally, work together on carbon emissions trading, and share knowledge around technology and management practices.