Hess, China National Petroleum Sign Shale Oil & Gas Agreement

Hess Corp., the New York-based energy company, and China National Petroleum Corp., parent of that nation’s biggest oil producer, signed a cooperation agreement for a shale basin in the western Xinjiang region.

The accord covers the Malang Block of the Santanghu Basin, according to a statement posted today by CNPC on its website. Terms weren’t disclosed. Jon Pepper, a spokesman for Hess, confirmed the agreement and declined to elaborate on it.

Hess and CNPC’s Hong Kong-listed PetroChina Co. (857) unit earlier agreed to a joint study of potential oil and gas production from 200,000 acres in the Santanghu Basin, according to Hess’s Feb. 28 annual report.

CNPC President Liao Yongyuan met Hess Executive Vice President Gregory P. Hill yesterday at a signing ceremony in Beijing, according to the statement. PetroChina Vice President Zhao Zhengzhang was present at the meeting, CNPC said.

Hess declined 0.8 percent to $72.88 at 11:09 a.m. in New York. The shares have risen 38 percent this year.

To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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