Shell Cancels or Delays Energy Projects in China
Year:2009 ISSUE:13
COLUMN:M & A, BUSINESS & TRADE
Click:207    DateTime:May.05,2009
Shell Cancels or Delays Energy Projects in China     

Royal Dutch Shell Plc said in mid April it has canceled or delayed some energy projects in China.
   Jilin Shell Oil Shale Development Company Limited, a joint venture between Shell and Jilin Guangzheng Mineral Development Company Limited, stopped field activities in 2007. Extensive exploration in Jilin province in 2006 and 2007 confirmed that the provincial oil shale resource is more than twice as much as originally estimation, but the exploration results also showed that the rich Jilin oil shale resource is too thin for the Shell In-situ Conversion Process (ICP) to apply. The joint venture disposed of nearly all of its assets in early 2008 and has been dormant since June 2008. The two parties have agreed to liquidate the joint venture.
   The project in Ningxia partnering with Shenhua Ningxia Coal Industry Group Co., Ltd. has been postponed due to economic considerations. But Shell remains active and is growing in China's coal gasification sector. To date Shell has sold 19 coal gasification licenses in China, of which 11 plants are in operation.
   Shell said it was in talks with Chinese partners on jointly bidding in Iraq for oil development contracts.