CNPC and Chevron Corporation have signed a production contract in Beijing on the joint development of Chuandongbei natural gas resources in southwestern China's Sichuan Province.

Jiang Jiemin, president of CNPC and chairman of PetroChina Company Limited, and Dave O'Reilly, chairman and CEO of Chevron Corporation, and officials from both companies attended the signing ceremony. Hu Wenrui, vice president of PetroChina, and John S. Watson, vice president of Chevron, signed the contract on behalf of each side.

The Chuandongbei block, covering nearly 2,000 square kilometers, includes the Tieshanpo, Dukouhe-Qilibei and Luojiazhai gas fields and has proven reserves of 176 billion cubic meters of natural gas. The complex settings of both the surface and subsurface, along with the high sulfur content in the gas, mean that the development of the area faces great challenges. However, its abundant resources and the available gas pipeline nearby offer the project favorable prospects and convenience in terms of marketing.