Chinese giant Sinopec and UK supermajor BP are in talks to cooperate in shale gas exploration and development in China, underscoring the growing interest major international oil companies have in gaining a foothold in shale-gas fields worldwide.

"The talks are going smoothly," Sinopec said on Jan. 18 in its official newsletter.

"This move could accelerate development in unconventional oil and gas fields with the help of foreign advanced conception and technology."

Sinopec has charted 2000 square kilometres in Kaili, Guizhou province, in south-western China and 1000 square kilometres in Huangqiao, Jiangsu province, in eastern China as potential cooperation blocks, it said.

Over the past 18 months, BP and Statoil have reached agreements with US gas giant Chesapeake Energy to develop US shale resources, with an eye toward transferring the technology overseas as well.

Last month, US supermajor ExxonMobil made the biggest endorsement yet of US shale gas with its $31 billion all-stock deal to acquire XTO Energy.

China saw its first joint development project in shale gas launched last November as Shell and state-run PetroChina signed an agreement to jointly develop shale-gas resources in south-western Sichuan province.

(upstreamonline.com Jan. 2010)