Reuters reported that Sinochem Corp, a state owned firm with business ranging from energy and agriculture to real estate signed a shale oil and gas agreement with Hess Corp on January 21 as China was preparing to auction its first shale gas blocks.

The Chinese firm said in a release during the weekend that Sinochem and Hess will establish a working committee to regularly discuss shale oil and gas technology, evaluation, laws, tax and business activities and further cooperate in China onshore shale oil and gas exploration and development.

Sinochem said the two companies will also cooperate in global oil and gas exploration and development. It did not provide more details.

China will auction eight shale gas exploration blocks in the first quarter of this year two more than first planned and months later than originally scheduled for November last year and Sinochem is one of the domestic companies eligible for the contest.

Sinochem a former oil trading monopoly in China has built up an overseas oil and gas portfolio in recent years but it did not have any exposure in the domestic upstream sector.

(Sourced from Reuters)