Sinopec, Conoco to Develop Shale Gas in China

The Sinopec Group, will jointly study shale gas development with ConocoPhillips in west China's Sichuan Basin over the next two years, Xinhua reported.

Sinopec Exploration Southern Company, a Sinopec subsidiary, will conduct research on the exploration, development and production of shale gas with ConocoPhillips China in the Qijiang block, an area located in the southwestern Sichuan Basin.

ConocoPhillips will carry out two-dimensional seismic surveys and drill two wells in the block.

Sources at Sinopec said the deal will have great significance in terms of evaluating shale gas reserves in the region and will help improve Sinopec's shale gas development techniques.