Statoil (STO.NYSE, STL.OSE), a company majority owned by the Norwegian government, is close to an agreement to explore shale gas reserves in China despite tensions between Beijing and Oslo, the Financial Times reported. China was unhappy at the decision to award the Nobel Peace Prize to jailed human rights activist Liu Xiaobo, but Statoil CEO Helge Lund said this had not derailed negotiations. Chinese oil companies are looking for Western assistance as they seek to replicate US success in extracting gas from tightly layered shale rock. China Petroleum and Chemical Corp (Sinopec; SNP.NYSE, 600028.SH, 0386.HK) is in talks with BP (BP.NYSE, BP.LSE) and Chevron (CVX.NYSE, CHTEX.Euronext) while China National Petroleum Corp (PetroChina; PTR.NYSE, 601857.SH, 0857.HK) is developing shale gas in southwest China with Royal Dutch Shell (RDS.A.NYSE, RDSA.LSE, RDSA.Euronext). Statoil has experience with shale gas reserves in the US northeast. Last month it partnered with Canada’s Talisman Energy (TLM.TSX) in the US$1.3 billion purchase of shale formations in Texas.
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