China approves Shell’s Fushun-Yongchuan shale gas production sharing contract

摘要

Singapore — The Chinese government has approved Shell’s shale gas production sharing contract inked with state company PetroChina in the onshore Sichuan basin last year, the Anglo-Dutch company said Wednesday. The PSC for the gas-rich Fushun-Yongchuan block was approved last month, a spokeswoman for Shell China said in an email. The contract had been awarded in March last year and was the first — and to date only — shale gas PSC in the country. The approval process was unusually lengthy and analysts said this was likely because the government needed to clarify the terms of the agreement given China’s nascent shale gas sector.