Pioneering Shale Gas in China: China Sichuan Shale Gas Joint Cooperation Project

Starting in January 2010, Shell and PetroChina have been evaluating an area of Joint Cooperation in the Sichuan Basin, China with the goal to explore, appraise, and ultimately develop a Shale Gas opportunity. The area of interest covers some 3500 km2 in largely agricultural, hilly terrain. Since project inception, two vertical and three horizontal wells have been drilled and hydraulically fractured, demonstrating the lateral pervasiveness of the Lower Silurian Longmaxi Formation shale and the flow of gas to surface in each of the wells. An extensive data gathering and evaluation programme has been executed. Core and log data, engineering data and fluid samples have been collected and analysed. Microseismic monitoring of a 9-stage fracturing treatment horizontal well using deep and shallow instrument wells has also been trialled with good results. This programme is the most advanced foreign co-operation shale gas project in China to date.