Shell Revises Tight Gas Agreement with CNPC
The onshore tight gas PSC amendment with CNPC represents a new phase for the development of the existing Changbei block with 1,692.5 square kilometers in the Ordos Basin, and adds scope to develop additional tight gas sands and further develop the already producing main reservoir.
The additional development project could increase the current production plateau of 320mmscf/d. Shell will continue to be the operator at Changbei.
Meanwhile, the company has also signed two offshore oil and gas Production Sharing Contracts (PSCs) with CNOOC for blocks 62/02 and 62/17 in the Yinggehai Basin.
Shell, as operator, will apply advanced seismic acquisition and processing technologies to conduct 3D seismic data surveys in the Yinggehai blocks.
Shell will cover the costs for the acquisition of seismic data and will use advanced drilling technologies to drill exploration wells during the exploration phase. Shell will hold a 100% working interest during the exploration phase that will be reduced to 49% in any eventual development phase, with CNOOC as majority partner.