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Qatar, Shell, China’s CNPC in gas agreement

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The Associated Press May 17, 2010, 12:51AM ET

Qatar has signed an agreement with Royal Dutch Shell and China National Petroleum Corp. to jointly explore for and produce natural gas onshore and offshore Qatar, Shell said Monday.

The 30-year agreement calls for Shell and CNPC’s PetroChina International to worth together in exploring for natural gas. Shell will hold a 75 percent share of the project, with CNPC holding the remaining 25 percent, Shell said in a statement.

The 8,089 square kilometer (3,123.17 sq. mile) “Block D” includes both offshore and onshore areas near Qatar’s northern city of Ras Laffan.

If exploration succeeds, Shell and PetroChina will produce the natural gas under the supervision of Qatar Petroleum, the statement said.

Tiny Qatar sits atop the world’s largest proven reserves of natural gas.


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