Chevron looking at China shale reserves

Chevron is likely to begin talks with Chinese companies to start joint ventures that will look to explore the country's vast shale reserves, reports in the media said.

China plans to hold a second auction for around 10 blocks in 2012.

Although, foreign companies are not yet involved in the drilling for shale gas in the country, they are allowed to invest in and offer technology to local exploration companies.

Country’s shale reserves are 12 times its conventional deposits and China expects to boost domestic production of hydrocarbons and raise oil and natural gas output from 280 million tons in 2010 to 360 million tons in 2015 and 450 million in 2030 to meet growing local demand.

The government has set a target of producing 80 billion cubic meters of gas by 2020.