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Sinopec in talks with BP over China shale gas: report

(Agencies)
Updated: 2010-01-19 16:42
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Chinese energy group Sinopec is in talks with Britain's BP over potentially collaborating in the exploration and development of shale gas in China, the Financial Times reported on Tuesday.

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Sinopec said in a company newsletter the talks with BP were going "smoothly" and that any deal would help China use foreign technology accelerate the development of its shale gas reserves, the paper added.

BP would not confirm the talks, the paper said.

In November it was reported that PetroChina and Royal Dutch Shell had started joint exploration of a Chinese shale gas block in China's Sichuan province in an effort to find alternative gas sources to meet the country's rising demand.