Chinese energy company Sino­chem has started talks with China National Petroleum Corporation (CNPC) about a production sharing contract formerly pursued by US independent Hess covering the Rongchangbei shale gas block in south western China’s Sichuan basin.

Sources said that once a deal is signed, Sinochem will take a 70% operating interest in Rongchangbei, with the remainder to be held by Malaysia’s state-owned Petronas.

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