China to Investigate Slow Progress of Shale Exploration

China’s Ministry of Land and Resources (MLR) has started an overall investigation into the exploration progress of shale gas developers that won the exploration rights of nineteen blocks in the second round of shale gas auction concluded earlier this year, China Scope Financial reported citing officials.

The MLR said that certain winners of shale gas blocks have shifted their focus from shale gas exploration and development to seeking financing through the blocks they held, China Scope Financial added.

For companies that are found to have not started exploration so far or have raised huge amounts of funds via shale gas blocks, the MLR will reduce the area of their shale gas bocks or directly withdraw the blocks, the report said.

Earlier this year, China awarded 19 blocks to 16 companies during the second round of shale gas auction.