BP in Talks with Sinopec
Asia's largest refiner, Sinopec is in talks with BP to develop shale gas resources in China, the latest in a series of moves by China's oil giants to make efforts to develop more clean-energy resources to reduce China's massive pollution. The second-largest oil consumer in the world, China is the world's biggest polluter.
Sinopec already owns 42 shale blocks in eastern China. China's Ministry of Land and Resources said earlier this week that it will auction rights to six shale blocks within the next month.
Chinese energy producers are looking to replicate the success of their U.S. counterparts in producing shale gas, which is extracted by using water and chemicals to break tight rock formations in a process known as fracking.
Sinopec declined to give further details on its potential partnership with BP, Europe's second-largest oil company, beyond confirming the companies are in talks.
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