Shell CNPC establish well manufacturing joint venture

Shell and CNPC to establish well manufacturing joint venture

11:45 AM, 21st June 2011
Shell and CNPC to establish well manufacturing joint venture
Peter Voser, CEO, Shell.

BEIJING, CHINA: Shell and China National Petroleum Company (CNPC)signed a global alliance agreement emphasizing their shared intent to pursue mutually beneficial co-operation opportunities internationally as well as in China.

The two parties also signed a ahareholders agreement to establish a Well Manufacturing joint venture (50% CNPC and 50% Shell) subject to further corporate and government approvals. It is intended that the joint venture will develop an innovative, highly automated Well Manufacturing System (WMS) that could significantly improve the efficiency of drilling and completing new wells onshore. The details of the parties’ respective contributions to the joint venture will be agreed during the transition phase over the coming months.

“CNPC and Shell are collaborating in a variety of projects globally with the aim of investing for profitable growth and to meet the world’s growing demand for cleaner, affordable energy. The shareholders agreement for the well manufacturing joint venture underscores how Shell and CNPC are working together to develop gas resources using innovative and cost competitive technologies,” said Peter Voser, CEO, Shell.

The WMS joint venture is expected to source the majority of its rigs, services and drilling equipment from low-cost suppliers in China. This combination could unlock substantial natural gas resources cost-efficiently and on a large scale.

© WOC News




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