PetroChina (PTR.NYSE; 0857.HK; 601857.SH) and Royal Dutch Shell Plc are in talks on natural gas development in southwestern Sichuan province, reported oil newspaper Upstream.
It is reported that the ongoing negotiation focuses on a PSA agreement in co-developing natural gas resources in the middle part of Sichuan with an area of around 1,000 square kilometers.
No other details are provided.
The report said the block to be developed by PetroChina and Shell is sold by ConocoPhillips that is cooperating with PetroChina in Bajiaochang gas block in Sichuan but yielded limited productivity there.
PetroChina and Shell are now working on the Changbei natural gas field with annual capacity of three billion cubic meters.
PetroChina and Chevron have PSA agreement in the Chuandongbei gasfield in Sichuan, reported Xinhua.