PetroChina in Talks with Shell, Hess to Explore for Shale Oil

PetroChina Co Ltd is looking to partner Royal Dutch Shell and Hess Corp to explore shale oil in Santanghu Basin in China's northwestern Xinjiang region, Reuters reported citing parent China National Petroleum Corp’s company-owned newspaper, China Petroleum Daily.

'The main goal of the cooperation is to introduce advanced technology, production and management methods in unconventional oil and gas exploration and development, ... and to accumulate technology and experience,' China Petroleum Daily reported.

The parties are negotiating business terms on block divisions and work targets during the exploration period, the report said, citing an official with Tuha Oilfield, a PetroChina unit which is responsible for developing the Santanghu Basin.

The foreign firms will bear the costs of exploration and share output with PetroChina in accordance with the proportion of investment during development, the report said.