CNPC, Eni ink joint study agreement to develop unconventional resources in Sichuan basin
BY WAYNE MA
BEIJING -- China National Petroleum Corp., the country's largest energy producer by volume, said Thursday that it has signed a joint study agreement with Italian oil giant Eni to develop unconventional resources in the Sichuan basin.
The block, located north of Rongchang county, has an area of 2,000 square kilometers, CNPC said in an in-house newsletter.
If results show that development of the block is commercially and technically feasible, the two companies will enter into negotiations to sign a more formal production-sharing contract so that further development can take place, it said.
CNPC signed the agreement as part of an overall deal with Eni to acquire a 28.6% stake in Eni East Africa, which owns the Area 4 natural gas field in Mozambique.
The transaction gives CNPC a 20% stake in the Area 4 field, while Eni remains owner of a 50% stake.
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