Sinopec Enters in Shale Gas Agreement with Exxon Mobil

Sinopec has entered into an agreement with Exxon Mobil Corp., to jointly assess shale-gas potential in the southwestern Chinese province of Sichuan.

The unit of China Petrochemical Corp., the nation’s second-largest oil and gas producer and Exxon's Sichuan subsidiary, signed an agreement to survey the 3,643.59 square-kilometer (1,407 square-mile) Wuzhishan area.

The agreement follows a move by Royal Dutch Shell Plc and China National Petroleum Corp. to set up a venture to drill onshore gas wells more efficiently in the world’s largest energy-consuming nation. The venture formed part of a Global Alliance Agreement announced in June between the largest European and Asian oil companies to establish cooperation opportunities in China and abroad.

China recently announced the results of first shale gas exploration tender with the award of two out of four shale gas blocks offered.