Royal Dutch/Shell Group will run China’s second largest gas field, according to a PetroChina official quoted by Bloomberg. The Anglo-Dutch company will run Kela-2 and four other fields for a period of two years and may buy a 45 per cent stake in the assets from PetroChina, said Sun Longde, vice president of the PetroChina subsidiary, Tarim Oilfield Co. If it were to operate the Tarim Basin fields in Xinjiang autonomous region, Shell would have the right to choose contractors and venture partners. After two years, PetroChina would resume control of the fields. Sinopec to take stake in pipeline project Sinopec will take a 5 per cent stake in the planned 4,000km west-to-east gas pipeline project, said Economic Daily. PetroChina, which heads Sinopec as China’s largest oil company, will take a 50 per cent stake in the pipeline.
"The initial designs have been completed and a framework agreement on foreign cooperation will be signed soon," said Shi Xingquan, vice president of PetroChina. A consortium led by Royal Dutch/Shell and including Russia’s Gazprom would hold the remaining 45 per cent, added Shi.
The entire US$20bn project should be completed by October 2004, but analysts have questioned its commercial viability.