(SNP) Sinopec and BP plc Are In Talks For Shale Gas

January 19th, 2010

Sinopec (SNP), the Chinese oil giant, is in talks over a possible collaboration with BP plc (BP) in shale gas development. This discussion follows the finalization of a deal between Royal Dutch Shell (RDSA) and PetroChina (PTR) during last November to jointly develop shale gas resources in southwest China.

For this project, Sinopec has charted a total of 3,000 square kilometers Incorporatedluding 2,000 square kilometers in southwestern China and 1,000 square kilometers in eastern China. To tap these resources, China is seeking foreign expertise.

For shale gas development, a huge amount of water along with chemicals is needed to be pumped into the ground at high pressure to break up the rock. Following the accomplishment of two deals with Chesapeake Energy (CHK) in 2008, BP has been gaining expertise in this relatively new area with an eye toward transferring the technology overseas as well.

We think that these shale gas transactions will have a twofold positive outcome. They will open new opportunities to increase potential reserves for companies such as Shell and BP, who have been struggling for quite some time to add numbers to their reserve bases. On the other side, these transactions will help China reduce its reliance on coal.

Zacks Investment Research

More on this topic (What's this?)
Scary: Why China is Buying Gold Like Mad (Learn Mining News, 1/30/12)
China’s Factories Improve (Wall Street Daily, 2/1/12)
BP: British Petroleum. Big Profits (Investment U, 9/9/09)
BP: Income Statement Analysis for the September 2009 Quarter (Gauging Corporate Financial Reports, 10/27/09)
Read more on Investing in China, BP at Wikinvest

Related Posts:

  1. (CVX) Chevron Wins Poland Shale Exploration LicenseChevron Corp. (CVX) – the second-biggest U.S. oil company – gained an exploration license in...
  2. (RDSA) Royal Dutch Shell Poised for Shale Gas in ChinaRoyal Dutch Shell PLC (RDSA) and PetroChina Company (PTR) have entered into a definitive agreement...
  3. (RRC) Range Resources Corporation Ahead on Shale PlaysRange Resources Corporation (RRC) on Wednesday provided its third quarter production results. Total volumes were...
  4. (RTP) Rio Suspends Chinese TalksLast week, Rio Tinto Plc (RTP) suspended talks with Chinese steelmakers over price cuts on...
  5. (APA) EnCana Corporation Shale Plays Bode WellEnCana Corporation (ECA) has recently said that a significant exposure to the Horn River shale...
  6. (SNP) Sinopec Wraps Up Addax DealEarlier today, China’s state-controlled petroleum refiner China Petroleum and Chemical Corp. – also known as...


Search Posts by Tag: | | | | | | | | | | Basic Materials | Independent Oil & Gas

RSS Feeds by Tag: BP | BP plc | Chesapeake Energy Corporation | China Petroleum & Chemical Corporation | CHK | PetroChina Company Limited | PTR | RDSA | Royal Dutch Shell Plc | SNP | Basic Materials | Independent Oil & Gas |

Other Posts by: | RSS Feed for this author