Shell China's large investment going to Sichuan

Royal Dutch Shell announced earlier this year that the Chinese government has approved its shale gas exploration deal with the China National Petroleum Corporation (CNPC) and Shell China is planning to put more than $1 billion into work in Sichuan province over the next two years.

Huibert Vigeveno, executive chairman of Shell China, explained, "$1 billion has been invested in our upstream businesses in China every year, much of it in Sichuan," at a press conference recently in Chengdu, capital of Sichuan.

Vigevono has visited Chengdu several times and said that Chengdu is one of his favorite cities in China, a historic city with abundant natural resources and talent, as well as hospitality and vitality.

Shell has many important upstream and downstream businesses in the province, with its joint venture partner Yanchang Petroleum, and now operates more than 130 gas stations in 13 cities across the province. It expects to open several dozen more over the next few years.

Its exploration project with CNPC has started in the Fushun-Yongchuan shale gas block, where more than 20 wells have been drilled to examine the geological features there. The exploration process will last two years, according to Vigeveno.