In an expansion of their ongoing global partnership, BP and China National Petroleum Corporation (CNPC) entered into a framework agreement on strategic cooperation covering potential shale gas exploration and production in the Sichuan Basin and future fuel retailing ventures in China and other international partnerships.

“The success of our Rumaila oil field project in Iraq has convinced us that there are more opportunities for cooperation between CNPC and BP,” said Bob Dudley, BP Group Chief Executive. “This strategic partnership not only strengthens the relationship between the UK and China’s largest energy companies, it further cements the relationship between China and the UK as global business partners.”

The agreement was signed during President of The People’s Republic of China, Mr Xi Jinping’s visit to the UK in the presence of President Xi and UK Prime Minister David Cameron. It is expected to add several billion dollars in future trade to BP’s already significant business with China.

“CNPC and BP have enjoyed a longstanding, cooperative relationship involving projects both in and outside of China,” said Wang Yilin, CNPC Chairman. “This framework agreement on strategic cooperation will further facilitate our two companies’ joint efforts in exploring opportunities on a global scale, be conducive to enhancing cooperation, and take our strategic partnership to a new height.”

In addition to these agreements to explore opportunities within China, BP and CNPC have agreed to explore oil and LNG trading opportunities globally, work together on carbon emissions trading, and share knowledge around technology and management practices.

“BP has been committed to doing business in China for more than 40 years and we’re pleased to expand a partnership that supports continued growth of the Chinese energy sector,” said Edward Yang, BP China President. “We expect China’s energy production to rise 47 percent and its consumption to grow 60 percent by 2035, making it the world’s largest energy importer. Through this agreement and others, BP is committed to being one of China’s preferred energy partners now and in the future.”

About BP and China

BP has been operating in China since the early 1970s. With an accumulated investment of current operations around US$ 4.5 billion by the end of March 2015, BP is one of the leading foreign investors in the Chinese oil and gas sector. BP’s business activities in China include petrochemicals manufacturing and marketing, aviation fuel supply, oil product and lubricant retailing, LNG terminal and pipelines and the chemical technology licensing. Building on its business successes in China, BP has also expanded partnership relations with the Chinese national energy companies beyond the country’s borders.

In an expansion of its ongoing global partnership with China National Petroleum Corporation (CNPC), BP and CNPC also entered into a strategic global partnership covering potential shale gas exploration and production in the Sichuan Basin. The companies have also agreed to cooperate on future fuel retailing ventures in China. In addition to these Chinese agreements, BP and CNPC have agreed to explore new trading opportunities globally and also to share knowledge around technology and management practices. Both companies are partners in the operation of the Rumaila oil field project in Iraq and see this as a model for future global cooperation.

About BP

Over the past 10 years, BP has invested more than $90 billion in the U.S. – more than any other energy company. BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing more than 18,000 people in all 50 states, BP supports nearly 200,000 additional jobs through all of its business activities.

About CNPC

CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a globally reputed contractor in engineering construction. With a presence in almost 70 countries, we are seeking an even greater international role. We provide energy in a profitable manner, and always attach great importance to our social and environmental responsibilities.​