Shell making inroads in China

Europe's biggest oil company, Royal Dutch Shell, has announced a raft of new tie ups with Chinese partners as it bids to increase its exposure to Asia.

Shell has agreed on two offshore oil and gas production sharing contracts (PSCs) with CNOOC, the Chinese National Offshore Oil Company.

The PSCs are for two blocks in the Yinggehai Basin. Shell, as operator, will hold a 100% working interest during the exploration phase which will be reduced to 49% in any eventual development phase, with CNOOC as majority partner.

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CNOOC will also buy a 25% stake in a Shell project offshore Gabon.

The company has also signed a PSC amendment with another Chinese outfit, CNPC for a new phase in an existing gas project in the Changbei block, onshore China.

Shell shares were up 1.2% at 13:02

BS