Shell Gets Approval for China Shale Block

The Chinese government has approved a production-sharing contract with Royal Dutch Shell for the Fushun shale gas block in southwest China's Sichuan province, Reuters reported citing a company official.

The contract is the first of its kind to be approved by China, said Shell spokeswoman Li Lusha, who was speaking on the sidelines of a conference in Beijing, Reuters added.

Shell CEO Peter Voser told reporters that the company was currently preparing for a "significant drilling season" for shale gas in China this year and the next.