Signing Ceremony for Contract in Shanxi and Anhui Province with CUCBM at the Great Hall in 2003.
Green Dragon's six PSCs are located in 4 provinces :
Shanxi (Shizhuang and Qinyuan)
Jiangxi (Fengcheng)
Anhui (Panxi East)
Guizhou
Each of the PSCs is for a term of 30 years comprising an exploration period, a development period and a production period of up to 20 years, where the company is the operator.
Gas in Place (GIP)
One province in from coast to avoid competition from imported LNG
Areas of high local demand and growth as such provinces are the next phase of Chinese growth.
Close to main gas pipeline infrastructure opening china wide market.
On block major industry such as Power
The blocks were selected by Greka as they are in areas of high demand which are relatively close to the existing pipeline infrastructure and which are too far from the coast to face competition from imported LNG.
China United Coal Bed Methane Company Ltd was established in March 1996 by CNPC,China Coal Energy Group Corp and the Minisitry for Land and Resources.
CUCBM formed the backbone of CBM development in China and the window of foreign investment of CBM development.
In 1998, CUCBM began to sign PSCs for selected blocks in order to attract foreign technology and expertise to assist in the development of China's CBM. A total of 26 such contracts have been signed to date.
China's CBM activities accelerated in 2005 when 305 wells were drilled: 135 under PSCs; 113 by CUCBM; and 47 by local coal bureaus.
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