Work on China’s shale gas blocks remains at a standstill – seven months after they were originally auctioned.
The 16 firms who won the exploration blocks in late 2012 have barely started seismic work due to the lack of funding or expertise.
So far, the companies have completed a total of 627 kilometres of two-dimensional seismic survey in five out of the 19 blocks and are preparing to drill several exploratory wells, with none yet spudded.
The firms won the bids by committing to spend at least £1.3 billion over the next three years.
“For those who do not put in exploration work or even in the extreme case using the acreage as excuse for fund-raising, (we) will reduce the size of their blocks or even revoke them,” warned the Chinese Ministry of Land and Resources in a report.
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