Total to Sign China Shale Gas Deal

Total is likely to sign an agreement with a Chinese partner to explore for shale gas in the Asian country.

“We are in very advanced talks with a big Chinese company for shale gas,” Yves-Louis Darricarrere, head of exploration and production at Total, told Bloomberg in an interview. “I hope we can announce something very shortly,” Darricarrere said without naming the partner.

Total can’t explore for shale gas in France because of a ban on hydraulic fracturing. A deal in China would come as the French company prepares to begin output at a tight gas field in Inner Mongolia called Sulige this year with China National Petroleum Corp, Bloomberg said.

According to Chinese government estimates, the country holds holds 25.1 trillion cubic meters (886 trillion cubic feet) of exploitable shale reserves.