Statoil Mulls Shale Gas Development in China

Norway-headquartered Statoil is looking for opportunities to develop shale gas in China. Statoil and some international companies are paying close attention to shale gas development opportunities in China and South Africa. The Norwegian energy company is in talks about certain shale gas project, said a senior executive, but he declined to tell whether it has selected Chinese partner. Statoil is teaming up with China Petrochemical Corporation (Sinopec Group) on investigation and study of offshore oil and gas resource in China.

Shale gas is an unconventional natural gas. The world's shale gas resource is estimated to be 456 trillion cubic meters, almost equivalent to conventional natural gas. Shale gas resources are mainly deposited in North America, Central Asia, China, the Middle East, North Africa, Latin America and former Soviet Union. Sources from the Ministry of Land and Resources of China said earlier that the ministry would invite public bidding for eight shale gas blocks in the first quarter of 2011.