CNPC, Chevron agree to start developing China gas field

BEIJING
Petroleumworld.com, Nov 06, 2009

China National Petroleum Corp (CNPC) said Thursday it had signed a deal with a subsidiary of US energy giant Chevron Corp to start developing a large gas field in southwestern China.

The Luojiazhai gas field in northeast Sichuan province will be China's largest upstream onshore project with a foreign partner, state-owned CNPC, the parent of listed PetroChina, said in a statement on its website.

The deal was signed with Unocal East China Sea, a subsidiary of Chevron.

The area covers nearly 2,000 square kilometres (800 square miles) and has an estimated resource base of five trillion cubic feet (1.5 trillion cubic metres) of natural gas.

Chevron had said previously that the first phase of the 4.7-billion-dollar natural gas project was approved by China's top economic planning agency -- the National Development and Reform Commission -- last week.

That approval came almost two years after Chevron signed a 30-year production-sharing agreement with CNPC to develop the area.

Chevron has a 49 percent stake, and the remainder is held by CNPC.

-- Dow Jones Newswires contributed to this report --

Story from AFP
AFP 11/05/2009 09:41

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