Royal Dutch Shell said it has signed its first-ever production sharing contract for shale gas in China with state-owned China National Petroleum Corporation (CNPC).

BBC: Shell signs first shale gas production pact in China

Shell signed the first production-sharing contract to explore, develop and produce shale gas in China.

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Shell said on Tuesday that the company has received approval from the Chinese government for its first shale gas production-sharing contract in China.

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Under a production-sharing contract, an oil company would recoup its costs and then be entitled to a proportion of the oil extracted, instead of being paid a fixed fee for each barrel.

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In 1996 Gandur made the salmon leap from the downstream activities of oil trading and marketing, which provide thin margins by moving huge volumes of other people's oil, into the upstream, which entails more risk and upfront investment but offers fatter returns. aog inked its first production-sharing contract with the oil minister of Ivory Coast to overhaul the abandoned offshore Espoir oilfield.

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Pre-Sal Petroleo would also run a new contract system that allows the state to implement production-sharing agreements that would direct more of the oil windfall to the state than to the oil companies whenever the price of oil goes up.

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