PetroChina Company Ltd. and France-based Total signed a contract on Thursday to develop natural gas in North China's Ordos Basin.

According to PetroChina, the proven gas reserve in contracted South Sulige block tops 100 billion cubic meters.

Located near a trunk gas pipeline linking North China's Shaanxi Province to Beijing, the gas from the South Sulige Block can be conveniently delivered, said a senior manager with PetroChina.

In recent years, TOTAL has been actively participating in China's on-shore petroleum exploration in addition to the company's continuous development in China's refining and petrochemical sectors.

PetroChina and TOTAL commenced the joint study of natural gas reserves in South Sulige block in 2002.

The South Sulige Project is PetroChina's second natural gas project in the Ordos Basin with foreign partners.

Source: Xinhua