September 24, 2010 (Chinavestor) PetroChina (NYSE: PTR), China's largest oil company, and U.S. oil major Hess (NYSE:HES) signed a joint operating agreement to develop shale oil resources at China's Daqing oilfield. Daqing is considered China's flagship oilfield and PetroChina (NYSE:PTR) is trying to bolster production there after output slipped last year.
Daqing produced around 40 million metric tons of crude oil and 3 billion cubic meters of gas in 2009, off the annual crude output of over 50 million tons for the 27 years until 2003, according to the Wall Street Journal. Daqing has been producing oil for 50 years, adding to concerns that the field may be near the end of its production life.
New York-based Hess (NYSE:HES) has been active in the Bakken Shale, one of North America's largest shale oil plays. Hess (NYSE:HES) and PetroChina (NYSE:PTR) hope that technological advancements can lead to increased production at Daqing.