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HONG KONG, May 29, 2011 - (ACN Newswire) - PetroChina CBM Co. inked on Friday a sales collaboration agreement with Orion Energy International Inc. (Orion),which indicates the beginning of large scale commercial exploration of coalbed methane in China.
This is the latest progress on the coalbed methane (CBM) project in the Sanjiao Block in northwestern China's Shanxi province, which is jointly developed by PetroChian CBM and Orion, said Orion's parent Sino Oil and Gas Holdings Ltd (00702.HK) in a filing to the Hong Kong stock exchange late Friday.
It is expected that the details of the CBM sales contracts will be finalized in the near future, according to the filing.
The Sanjiao block, one of the best CBM fields in China with a proven reserve of coalbed methane of 43.5 billion cubic meters, is expected to form an annual production capacity of 1 billion cubic meters within three years.
As of December 2010, Orion had completed 17 multi-lateral horizontal wells in the block with an annual handling capacity of 130 million cubic meters of CBM. Meanwhile, PetroChina CBM has established and commenced the operation of a compressed natural gas head station with a daily compression capacity of 30,000 cubic meters.
PetroChina CBM is a wholly owned subsidiary of PetroChina Co., Ltd. (PTR.NYSE; 601857.SH; 0857.HK), the largest oil and gas producer in the country. Orion, a leading company applying proprietary technology in multi-lateral drilling wells exploration in China, provides an integrated solution and engineering services for CBM surface production combined with gas management. (Xinhua)
Topic: Contract Awarded
Source: Sino Oil and Gas Holdings Ltd.
Sectors: Gas & Oil
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From the Asia Corporate News Network
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