BP plc and China National Petroleum Corporation (CNPC) have signed the first production sharing contract (PSC) for shale gas exploration, development and production in the Neijiang-Dazu block in the Sichuan Basin, China. The contract will cover an area of approximately 1,500 square kilometers and positions CNPC as the operator of the project. This PSC is the first achievement from BP and CNPC’s framework agreement on strategic cooperation that was signed last October during the President of The People’s Republic of China, Xi Jinping’s, visit to the UK. In addition to unconventional resources, the framework agreement covers possible future fuel retailing ventures in China, exploration of oil and LNG trading opportunities globally, and carbon emissions trading, as well as sharing of knowledge around low carbon energy and management practices. –