Shell confirms Groundbirch deal with PetroChina
BY ALEXIS FLYNN
LONDON -- Royal Dutch Shell confirmed it has agreed a deal to sell a 20% stake in a Canadian shale gas project to state-controlled PetroChina Co., saying that the move was the latest example of its strategic co-operation with parent China National Petroleum Corp.
However, Shell Chief Executive Peter Voser wouldn't be drawn on the price that it had been paid, declining to comment on speculation that the stake exchanged hands for around $1 billion.
"I can confirm that CNPC will join us in Canada," said Voser. "We agreed a global partnership last year and this forms a part of that."
PetroChina, the Hong-Kong listed arm of CNPC, said earlier Tuesday that it bought the 20% stake in Groundbirch, northeastern British Columbia. PetroChina hopes to gain experience in the exploration and development of unconventional gas resources through its cooperation with Shell, the Chinese company said in a statement.
Groundbirch's natural gas output is 125 million cubic feet a day, the company said.
Dow Jones Newswires
02/02/2012