WellDog has signed a letter of intent to form a joint venture (JV) with the Shaanxi Provincial Institute of Energy Resources and Chemical Engineering (SPIERCE).
The JV will deploy reservoir, production and development technologies to demonstrate profitable coalbed methane (CBM) development in fields located within the Shaanxi province, one of China's most prolific energy resource regions.
"The introduction of WellDog technologies will contribute greatly to the efficient development of CBM and other unconventional oil and gas resources in China," stated SPIERCE Director Dr Zhou Lifa.
China's CBM resource is estimated at nearly 40 trillion m3, with recoverable reserves of about 10 trillion m3. Over the last few decades, China has dramatically increased investment in CBM technologies, and each of the country's five-year plans has increased CBM production targets, but the results to date have not met those goals.
"We believe we have the operational and technical know-how to make a dramatic improvement in Chinese CBM production," said John Pope, Ph.D., President and CEO of WellDog. "We started in 1999 at the very infancy of CBM and have become one of the major global players in delivering successful CBM technical services to basins around the world. Bringing WellDog's know-how and technologies to China will enable the Chinese producers to maximise value from their assets and hopefully meet their production targets in the near future."
The JV meets WellDog's strategic goal of driving geo-resource innovation to improve sustainability.
"Shaanxi has committed to producing 20 billion m3 of natural gas by the end of the 13th five-year plan," said James Walker, WellDog Chief Operating Officer. "The dramatic increase is part of China's push to ease off of burning coal and switch to natural gas, which would substantially improve the average quality of life of Chinese residents."
Read the article online at: https://www.worldcoal.com/cbm/14112016/welldog-moving-towards-further-cbm-developments-in-china/
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