China United Coalbed Methane Corporation Ltd. has recently signed a contract with Texaco Inc. to jointly exploit the coalbed methane (CBM) of Inner Mongolia, Shaanxi and Shanxi of China.
According to the contract, within the five-year prospecting period, Texaco will independently take the risk of prospecting, and the two contracting parties will make joint investment and share the sales income in proportion.
It's reported that since the three contractual sites are located in the central and western regions of China, the Chinese government's policy support for the massive development of the western region will make it possible for the investors to enjoy preferential treatment, thereby boosting their enthusiasm and accelerating the development of the project.
The total volume of CBM buried 2,000 meters deep amounts to 30,000-35,000 billion cubic meters, ranking third in the world.
(People's Daily 11/23/2000)
