(Adds Italy Eni's joint study with CNPC)
BEIJING, May 17 (Reuters) - Italian oil firm Eni has entered a joint study with China's CNPC to explore a shalegas block in the southwestern province of Sichuan, officialssaid on Friday, becoming one of the latest foreign firms toenter China's shale gas sector.
International oil and gas firms have shown interest inChina's potentially vast shale gas reserves that are believed tobe the world's largest, although there has been littlecommercial production to date.
Companies like and Hess Corp, Shell, Chevron and Exxon Mobil have partnered with China's state oilfirms PetroChina and Sinopec Corp thatoperate vast acreage, though most of them are early stages ofcooperation like joint studies.
Outside the acreage operated by Chinese energy majors, thegovernment has opened two shale gas auctions.
Sixteen Chinese companies won 19 blocks in the second tenderthat concluded last December, all of which are non-oil firmswhich means they will need to buy in the expertise they lack,creating opportunities to big service companies such asSchlumberger and Baker Hughes, as well as local playerssuch as Anton Oilfield Services Group
The following lists foreign firms' activities in China'sshale gas business, based on company statements, industryofficials and media reports.
ConocoPhillips : in joint study agreement with Sinopec Group for block Qijiang insouthwestern Sichuan province. ConocoPhillips will carry outtwo-dimensional seismic survey and drill twowells.
In Aug 2010, was reported to be in advanced talks withPetroChina over the development of a 3,000 squarekilometres shale gas block between Chengdu, capital ofsouthwestern Sichuan province, and Chongqing municipality.
Royal Dutch Shell:Chief Executive Officer Peter Voser said in March that Shellwould enter "significant drilling season" this and next year atFushun block and also tight gas block Jinqiu, both in Sichuanprovince, to find the "sweet spots" for longer-term productionplan.
Shell would also focus in the next few year to bring downthe cost. "The more you drill, the more you'll get amanufacturing approach to your drilling operation," Voser said.
The company in March won China's approval for a shale gasproduction sharing contract to develop the Fushun block, whereindustry officials said early explorations at one well testeddaily gas output of 60,000-130,000 cubic metres. Total : Agreed in March with Sinopec Group to jointly study a shaleblock in Anhui province, and drill three wells. In March 2012, Total reached a preliminary agreement to form ajoint venture with Sinopec to hunt for shale gas, according to amedia report.
Eni:Joint study with CNPC agreed in March for the 2,000 square-kmRongchang block in Sichuan province. The block is locatedadjacent to Shell's Fushun block. The deal is connected withEni's sale of a 20-percent stake of an offshore Mozambique gasfield to CNPC for $4.21 billion.
Exxon Mobil :In July 2011, agreed to study with Sinopec a shale gas block in southwestern part of Sichuan. The block, Wuzhishan-Meigu, coversan area of 3,643 sq km.
Chevron :In April 2011, Chevron entered a joint study agreement toexplore for shale gas in Qiannan Basin in southwestern Guizhouprovince. It has started drilling the second and third wellsthis year, the company said.
Hess Corp :In July 2010, Hess entered a study pact with Sinopec Corp tolook at shale gas and oil potentials in Shengli oilfield in eastChina, China's second-largest crude oil producer. Also in ashale oil study in western Xinjiang region.
BP :In Jan 2010, Sinopec was reported in talks with BP overpotential cooperation in the exploration anddevelopment of a 2,000-square-kilometre shale gas block in Kailiin Guizhou province and a 1,000-square-kilometre block inHuangqia in the northern part of Jiangsu province.
Newfield Exploration:In Oct 2007, the Houston-based company agreed to jointlystudy with PetroChina shale gas resources at the Weiyuan fieldin the Sichuan basin in southwestern China. (Reporting by Chen Aizhu and Beijing newsroom)
