Green Dragon Inks Agreements with CNOOC Unit on CBM Exploration
China’s Green Dragon Gas’ wholly owned subsidiary, Greka Energy, has entered into three supplementary agreements with China United Coalbed Methane Corporation (CUCBM), a subsidiary of Cnooc, regarding three production-sharing contracts (PSC) in China in the Shanxi, Anhui and Jiangxi regions, it said October 4.
“These agreements conclude our five PSCs that have been in question over the past eight years, ensuring a committed close co-operation between CUCBM and Greka to unlock and monetise all our lucrative, prolific gas blocks. The detail in these supplementary agreements eliminates ambiguity in the PSCs and provides a transparent and clear road map to conclude the exploration programme and progress to commerciality,” said Green Dragon Gas chairman Randeep Grewal.
Exploration can now commence across the Fengcheng, Qinyuan and Panxie East blocks. This complements the previous announcement released on September 20 that announced a memorandum of understanding on five PSCs.