Why CNPC and BP signed the shale gas sharing contract at this depressed season?

BP and China National Petroleum Corporation (CNPC) signed a production sharing contract (PSC) for shale gas exploration, development and production in the Neijiang-Dazu block in the Sichuan Basin, China On March 31. Mr. Wang Yilin had a meeting with Mr. Bod Dudley before attending the signing ceremony, and spoke highly of the cooperation results of the two sides under the tough situation brought by low oil prices.

But you may have a question, why they signed the contract in this depressed season? In fact, BP Plc is seeking to hit it big in China’s shale gas fields where competitors including Royal Dutch Shell Plc have struck out for a long time.

Shell separately on Friday said it’s giving up on its shale acreage in China, where challenging drilling conditions stymied the exploitation of what’s estimated to be the world’s largest reserves. But as we look across the world, we find ourselves in an era of both opportunities and challenges.

There was a time western oil experts have claimed that Chinese oil, but Li Siguang located the oil field, which proved that China is not a lean-oil country. For now, though we faced with the growing depletion of oil resources, the oil and gas could not be replaced by other resources for a long time to come.

It is not just the BP and CNPC, but Xinxiang Kolanky as well. As the leader of the oilfield chemcial supplier in China, we have speciallized in this career for over 20 years, and we do believe, with our experience, our strength, and our professional dedication, a better future is waiting for us.