Sino Oil & Gas Holdings Gets Chinese CBM Permit
The Sino Oil and Gas Holdings-operated Sanjiao coalbed methane (CBM) project located in the Erdos Basin in China’s Shanxi and Shaanxi provinces was granted a mining permit by the ministry of land and resources July 6 with an approved CBM capacity of 500mn m3/yr, the company said July 18.
The mining permit will be valid for 25 years from July 2017 to July 2042, it said.
“This is another major national ministerial-level administrative approval obtained by Sanjiao CBM project following the approval of its [overall development plan] by the [National Development and Reform Commission] in 2015,” Sino said. The company has obtained all necessary administrative approvals under the current Chinese laws and regulations for exploration, development, exploitation and production phases of the Sanjiao CBM project.
The Sanjiao CBM project is conducted according to a production sharing contract (PSC) entered into by Sino’s wholly-owned subsidiary, Orion Energy International with China National Petroleum Corporation, its partner in China.
Sino has a 70% interest in the PSC which covers a total site area of 383km2.
Shardul Sharma