Abstract
Abstract This article presents an analysis of how China will participate in the ‘shale revolution’ through Sino-foreign collaboration by evaluating the legal arrangements on offer today in the onshore shale gas industry—specifically focusing on the essence of the different agreements, the obstacles for foreign investors under the current petroleum regime, why obstacles exist and what the relevant solutions to them might be. The first part of the article provides a general introduction to the use of JV contracting models and PSCs in the development of Chinese shale projects with foreign investment, and analyses the crucial factors which apply to determining the boundaries between the different forms of contract and the concerns of the relevant parties in the process of negotiation. The second part of the article investigates the reasons for the absence of IOCs in the second shale gas bid round, and why Shell terminated its PSC with CNPC even though commerciality had been declared. Finally, taking into account the underlying reasons for why China's legal regime hinders foreigner investors' enthusiasm for shale gas investment, it proposes relevant suggestions to enhance the attractiveness of Sino-foreign shale gas cooperation.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have