Oil giant BP is planning to quit two production sharing contracts for shale gas projects in Sichuan province with China National Petroleum Corp (CNPC), sina.com reported, citing Reuters.
The drilling results for most of the wells were disappointing, the report said.
BP and CNPC signed a deal in March 2016 to jointly explore and produce shale gas in the Neijiang-Dazu block in Sichuan. They inked a second production sharing contract contract on Rongchangbei block later in 2016.
BP’s chief executive officer Bob Dudley said last week at a conference in Shanghai that the Sichuan projects faced “great challenges” because of its complex geology, ThePaper reported.
The report also said BP is the last of the international oil giants, including Royal Dutch Shell, Exxon Mobil, ConocoPhillips and ENI, to quit exploring for shale gas in China due to poor drilling results.
BP and PetroChina would not comment on the issue.