Shell Buys Sunwing Zitong Energy's Stake in Sichuan Gas Block

Royal Dutch Shell has acquired Sunwing Zitong Energy's 100 per cent interest in the Zitong natural gas block in China's Sichuan province, China Daily has reported. Sunwing Zitong is a wholly-owned subsidiary of Canada-based Ivanhoe Energy.

The two parties have also signed a Zitong Production Sharing Contract Amendment Agreement with China National Petroleum Corporation and Mitsubishi Gas Chemical Company to acknowledge the transfer of interest, the newspaper report said.

The Zitong natural gas block has an area of 1,001 square kilometers, and lies 20 km to the north of the Jinqiu block in the Sichuan basin.

As the operator, Shell has 90 percent of participating interests and MGC 10 percent during the exploration and development phases.

The exploration of the project has been conducted for about 10 years.