The fifth-largest oil company in the world, China Petrochemical Corp. -- also known as Sinopec -- inked an agreement with ConocoPhillips to study and develop shale gas exploration in southwestern China's Sichuan Basin, according to a release on Sinopec's website.
Sinopec subsidiary Sinopec Exploration Southern Company will conduct the research with ConocoPhillips in a portion of the Sichuan Basin known as the Quijiang Block. The cooperation between the two companies is expected to last 24 months.
ConocoPhillips' entry into China marks the third major international oil company to launch shale operations in the world's second-largest economy, according to a Dow Jones Business News report. Previously, both Royal Dutch Shell and Chevron engaged in similar agreements, the latter also with Sinopec. The former went on to approve a larger production-sharing agreement with PetroChina earlier this year, although the Chinese government has yet to announce approval for that.
The deal marks another agreement with U.S. interests for Sinopec. Earlier this year, the Chinese oil major completed a multibillion-dollar deal for a one-third stake in five of Devon Energy's American shale gas fields.
The article Sinopec, ConocoPhillips Team Up in Shale Gas Development originally appeared on Fool.com.Dan Carroll has no positions in the stocks mentioned above. The Motley Fool owns shares of Devon Energy. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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