Petro China and Pan-China Resources Ltd., a subsidiary of Canada's Ivanhoe Energy Inc., has signed a contract for exploration natural gas resources in the Zitong section of the Sichuan basin, China.
The area of exploration is about 3,560 square kilometers in the western part of the basin, and the companies believe to get as much as 5 trillion cubic feet of potential natural gas resources.
PanChina, China's largest oil corporation, will prospect the Zitong area's resources for six years. According to the 30-year long contract, Pan-China owns 49 percent of the total shares and PetroChina the rest 51 percent.
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