Sinopec Group said on Tuesday its subsidiary Sinopec Exploration Southern Co and ConocoPhillips China signed an agreement focusing on shale gas exploration and production research for the Qijiang block in the Sichuan Basin.

The Qijiang block is located in the southeast area of Sichuan province. Exploration of the block faces challenges such as complex geological conditions, and the fact that the main target layer is buried deeply.

The research project will cover an area of 3,917 square kilometers, with the cooperation period to last 24 months.

The cooperation project will help to evaluate the potential of shale gas exploration in the area, and enhance the engineering technology level of shale gas exploration at Sinopec, a source with Sinopec was quoted by Xinhua News Agency as saying.