China to open shale gas bid for more domestic firms

The Chinese government plans to allow more domestic enterprises to take part in the first public bid for shale gas blocks, said Zhang Dawei, deputy chief of Oil and Gas Resources Research Center of the Ministry of Land and Resources on Jan. 27. The bid for shale gas blocks will be held in the first quarter this year.

Domestic enterprises who have done oil and gas drilling oversees, such as Sinochem Group, Citic Group and China United Coalbed Methane Corp., who have overseas experience on CBM exploration and development or cooperation with foreign firms on domestic CBM operation, may probably be allowed to participate the bid. But the final list of bidding companies has not been released yet, according to Zhang. He said the shale gas blocks available for the bid have been increased from six to eight. If domestic companies win the bid, they will have the rights to cooperate with companies oversees on the shale gas business.