By WAYNE MA
BEIJING -- PetroChina, China's largest energy producer, is
in talks with Royal Dutch Shell and Hess Corp. about forming a
joint venture to develop shale oil in the Santanghu Basin in
northwestern Xinjiang province, PetroChina's parent company,
China National Petroleum Corp., said in an in-house newsletter
The Turpan-Hami Oilfield Co., a unit of PetroChina, already
has received approval to develop shale oil in Santanghu with
two companies in a joint venture, CNPC said, quoting a company
Although the foreign companies will assume all the
investment and exploration risk for shale oil, all
the companies in the joint venture will invest in developing
the shale oil, CNPC said, without elaborating.
China had an estimated 354 billion bbl of shale oil
resources as of 2008, the World Energy Council said.
However, China produced only about 7.6 million bbl of shale
oil in 2008, it said.
Dow Jones Newswires