Analyst reports, page-77

Here are a bunch of interesting links if you want some light reading all things global CSG resources production......

There is some interesting reading about  PSCs in China in the executive summary of the first link. Excerpt below

http://documents1.worldbank.org/cur...6/pdf/ESM3260PAPER0C1bed0methane01PUBLIC1.pdf

https://connect.slb.com/~/media/Files/resources/oilfield_review/ors09/sum09/coalbed_methane.pdf

https://www.gazprom.com/about/production/extraction/metan/

https://www.onepetro.org/journal-paper/SPE-169006-PA

http://scitechconnect.elsevier.com/wp-content/uploads/2016/12/3-s2.0-B9780128030950000016-main.pdf

https://www.apec.org/-/media/APEC/P...echnologies-for-APEC-Developing-Economies.pdf


CBM resource management in China involves a carve-up of potential prospective areas between the State-owned petroleum and CUCBM monopolies. Resource is managed by those with vested interests in the proceeds of development rather than by an independent government body serving the national interest. Foreign CBM developers are required to sign a Production-Sharing Contract (PSC) with CUCBM which sets out the rules, a minimum exploration expenditure and other conditions. However, PSCs are not sacrosanct and there is evidence that State- owned oil and gas companies have disregarded the “license” boundaries in their exploration programs. The PSCs have no formal legislative standing but are intended to provide an internationally recognized form of cooperative agreement and a basis for negotiation.
At present, CUCBM and other State-Owned Enterprises (SOEs) with CBM exploration interests (for example, Petrochina) apply to MoLaR for CBM exploration and development licenses which are issued on a first come, first served basis, unless the area is reserved for other purposes. CUCBM can decide whether to explore alone or to form a cooperative venture with a foreign company under a PSC. The current licensing system does not allow for any market competition, licences can be easily extended and there is no incentive to expedite exploration and development. As a result, exploration is inefficient and development slow. Substantial CBM license areas have been let but not explored due to lack of resource, or ranked as of low interest by the holder. Some developers have sought to build large portfolios of license areas merely to try and impress investors, but they have neither the intention nor the resources to explore and develop. Access to both coal and large associated CH4 resources are also sterilized by coal mine leases of 70 years or more which hinder and slow development.


I hope our PSC is tighter than suggested above