Sino Gas & Energy Holdings Limited has signed a Modification Agreement to extend the exploration period on the Linxing Production Sharing Contract (PSC) for a further two years through to August 2013.
The Modification Agreement signed between Sino Gas and CUCBM, which is 50% owned by CNOOC, also serves to accelerate activity on the PSC's development area and, in addition, to increase focus on the PSC's shallow CBM resources.
Commenting on the Modification Agreement, Mr Wu Wei Feng, president of CUCBM, said, "CUCBM and Sino Gas have enjoyed a strong working relationship since early in 2006. CUCBM, which is now backed by the Chinese International oil-major, CNOOC, had recently announced a strong strategic focus on unconventional resources for its long-term growth. Our Modification Agreement with Sino Gas opens up avenues for CUCBM and Sino Gas to cooperate on new coal bed methane, shale gas and other unconventional gas opportunities in the future."
Sino Gas's managing director, Mr Stephen Lyons, said that the new agreement represented another milestone as Sino Gas builds a significant gas business in one of China's most productive gas basins. "The Modification Agreement is a key step that enables Sino Gas and CUCBM to focus on obtaining the Chinese Reserves Report, and renews the partners' commitment to appraise the shallow CBM resources on the PSC", Mr Lyons said.