BP has reached a fracking deal with the China National Petroleum Corporation (CNPC).
The energy giants signed a production sharing contract covering shale gas exploration, development and production in the Neijiang-Dazu block in China’s Sichuan Basin.
Covering an area of 1,500m2, the agreement represents BP’s first shale gas production sharing contract in China.
BP believes shale gas will account for a quarter of the total gas produced globally by 2035, and that China will become the world’s largest contributor to growth in shale gas production.
BP Group chief executive Bob Dudley said: “We are pleased to reach this significant milestone as part of our strategic partnership with CNPC, building on our successful cooperation in and outside of China.
“We will bring our worldwide experience to our first unconventional gas project in onshore China with CNPC. We will combine this with CNPC’s knowledge and experience to bring gas to China’s growing clean energy market.”
CNPC chairman Wang Yilin said: “By leveraging the parties’ complementary advantages, CNPC and BP will jointly realise the efficient development of unconventional resources.”