Chevron Confirms Interest in China Shale Resources

Chevron Corp. confirmed in a statement to Securities and Exchange Commission Thursday that it has signed a joined agreement to explore for shale gas in China's Qiannan Basin.

“The company signed a joint study agreement to explore for natural gas from shale resources in the Qiannan Basin in April 2011 and commenced seismic operations in July 2011,” the company said in the statement.

Chevron had expressed interest in exploiting China’s vast shale resources last year. Asia biggest economy plans to hold its second auction of shale gas exploration areas as early as this month.

China, yet to produce shale gas commercially, may hold huge reserves of shale gas with estimates pegging the number at about 31-36 trillion cubic meters.