CNPC and Shell sign production sharing contract for shale gas

China National Petroleum Corporation (CNPC) and Shell have signed a production sharing contract (PSC) for shale gas exploration, development and production in the Fushun-Yongchuan block in the Sichuan Basin, China.

Subject to government approval, this is the first shale gas PSC ever signed in China. The contract area covers approximately 3,500km2.