Shell Signs China CBM Deal

Shell has signed a framework agreement with the government of the Xinjiang autonomous region in northwest China to jointly explore and develop coalbed methane other other unconventional gas resources in the region, according to a statement published Wednesday by the local government.

The agreement was signed on February 28 by Vice Chairman Kurax Mahsut of the Xinjiang government and chairman of Shell's companies in China, Lim Haw Kuang, the statement said.

"We can confirm that Shell has signed a Strategic Cooperation Framework Agreement with the government of Xinjiang, China to explore energy cooperation opportunities," Li Lusha, a spokeswoman for Shell in Beijing, said in an email reply.

The announcement, however, did not elaborate on details on actual exploration sites or capital investment to be injected by Shell in the exploration and development.

Source: Platts