Representatives from China National Petroleum Corp. and Shell met on 8 April 2014 to sign global cooperation agreements.
CNPC Chairman Zhou Jiping met with Shell CEO Ben van Beurden in Beijing where the pair signed agreements covering both company's unconventional resources, deepwater, LNG, and upstream and downstream businesses. Also in attendance were CNPC Vice President Wang Dongjin and PetroChina Vice President Bo Qiliang.
"Both [companies] agree to take soft power as an integral part in various fields of cooperation, and to promote the strategic partnership between the two sides to a higher level," CNPC said in a statement on its website.
The companies are long-time partners, most recently pairing up alongside CNOOC, Petrobras and Total to form a consortium that will develop the giant Libra presalt oil discovery located in the Santos Basin, offshore Brazil. The partners hold a 35-year production sharing contract for the field, which Brazilian regulator, Agência Nacional do Petróleo (ANP), estimates holds recoverable resources of between 8-12 billion bo.
The new cooperation agreements also build upon ones signed in 2012 for a production sharing contract (PSC) for shale gas exploration, development and production in the Fushun-Yongchuan block in the Sichuan Basin, China.
Reuters reported that Shell also plans to partner with CNPC to build a US$12.6 billion refinery and petrochemical complex in eastern China, a project that could become the single largest foreign investment in the country.