ConocoPhillips (NYSE:COP) and PetroChina (NYSE:PTR) have been quietly negotiating on a joint venture in China which would target shale gas projects in the middle kingdom.
Operations would initially be pursued in the Sichuan province, where Conoco would explore an approximate 3,000 kilometer area of Sichuan.
This would a first for China, which has no proof of having had began shale gas production in the country.
As in many cases, the benefit to China would be the expertise of a western company like Conoco, which would have far more advanced technology to perform exploration and testing at a higher level.
China is desperate for natural resources, and a competing world makes their own land the best place to get it if the resources are there.
With the discovery of enormous shale natural gas reserves in America, China is hoping their country may have significant reserves as well, which could last them for many decades, and more.
I am pretty sure EOG and others have already started JV shale projects with PetroChina. Conoco might be late to the party.
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