Energy

Chevron, Sinopec may join in shale gas deal

(Agencies)
Updated: 2010-09-17 17:46

Major US oil company Chevron Corp and China Petrochemical Corp (Sinopec) may join forces to explore and develop shale gas in southwestern China at the end of the year, the Wall Street Journal reported Friday, citing an unnamed source.

Chevron has identified a gas block near Guiyang, in Guizhou province, close to an area that BP and Sinopec Group are exploring, the paper said.

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John Watson, Chevron's chairman and chief executive, also told the Journal that the company is talking with Sinopec about cooperating on shale gas in China, but he did not give a timetable.

Gareth Johnstone, the Singapore-based spokesman for Chevron, confirmed the news to Bloomberg by e-mail today, but did not elaborate beyond that.

Sinopec Group said it aims to have the capacity to produce 2.5 billion cubic meters of unconventional gas annually by the end of 2015, including shale gas and coalbed methane, according to the paper.

Sinopec will prioritize shale gas exploration and development over other unconventional gas resources, the paper said, quoting Sinopec's general manager Su Shulin.