China on Monday announced the results of its second shale gas bidding round, awarding the 19 blocks on offer to 16 domestic companies.

The winners were announced at a press conference held by the Ministry of Land and Resources.

The 16 domestic companies comprise six state-owned enterprises, eight enterprises owned by local governments and two private-owned companies, the ministry said in a transcript of the proceedings. Coal and power companies won eight blocks.

The total investment for all 19 blocks is expected to be Yuan 12.8 billion ($2.06 billion) within the first three years of exploration, it added.

The ministry had announced the top three bidders for each block in early December, most of which were companies with no oil and gas experience. PetroChina was shortlisted for the Sangzhi block in Hunan province, but lost out to China Coal Geology Engineering Corp.

The tender closed late October last year and the ministry had said it received 152 bids from 83 companies for the 20 blocks on offer. They spanned some 20,239 square kilometers across eight major provinces and cities. One block did not receive the minimum three bids and was excluded from the bid round.

Analysts had said PetroChina and other state oil and gas companies likely put in lower bids for the blocks as they already own existing shale gas acreage with better prospective and were in a better position to evaluate the acreage offered.

Lacking any drilling or oil and gas technology, the winners of the bid round are likely to seek foreign cooperation or join with other domestic companies to develop the blocks.

Chinese state companies are already working with a handful of international oil companies on other blocks in China, including Shell, Chevron and ConocoPhillips.

In the first shale gas round held in June 2011, the ministry invited just six companies -- PetroChina, China National Offshore Oil Corp., Sinopec, Shaanxi Yanchang Petroleum, China United Coal Bed Methane and Henan Provincial Coal Seam Gas Development & Utilization -- to participate.

Only two blocks were awarded as the other two failed to receive the minimum number of bidders. Sinopec won the Nanchuan block in Guizhou while Henan Provincial was awarded the Xiushan block near Chongqing city. China on Monday announced the results of its second shale gas bidding round, awarding the 19 blocks on offer to 16 domestic companies.

The winners were announced at a press conference held by the Ministry of Land and Resources.

The 16 domestic companies comprise six state-owned enterprises, eight enterprises owned by local governments and two private-owned companies, the ministry said in a transcript of the proceedings. Coal and power companies won eight blocks.

The total investment for all 19 blocks is expected to be Yuan 12.8 billion ($2.06 billion) within the first three years of exploration, it added.

The ministry had announced the top three bidders for each block in early December, most of which were companies with no oil and gas experience. PetroChina was shortlisted for the Sangzhi block in Hunan province, but lost out to China Coal Geology Engineering Corp.

The tender closed late October last year and the ministry had said it received 152 bids from 83 companies for the 20 blocks on offer. They spanned some 20,239 square kilometers across eight major provinces and cities. One block did not receive the minimum three bids and was excluded from the bid round.

Analysts had said PetroChina and other state oil and gas companies likely put in lower bids for the blocks as they already own existing shale gas acreage with better prospective and were in a better position to evaluate the acreage offered.

Lacking any drilling or oil and gas technology, the winners of the bid round are likely to seek foreign cooperation or join with other domestic companies to develop the blocks.

Chinese state companies are already working with a handful of international oil companies on other blocks in China, including Shell, Chevron and ConocoPhillips.

In the first shale gas round held in June 2011, the ministry invited just six companies -- PetroChina, China National Offshore Oil Corp., Sinopec, Shaanxi Yanchang Petroleum, China United Coal Bed Methane and Henan Provincial Coal Seam Gas Development & Utilization -- to participate.

Only two blocks were awarded as the other two failed to receive the minimum number of bidders. Sinopec won the Nanchuan block in Guizhou while Henan Provincial was awarded the Xiushan block near Chongqing city.

Winners of China's 2012 shale gas bid round
Block Company 
1.Guizhou Suiyang          Huadian Coal Industry Group 
2. Guizhou Fenggang 1       China Coal Geology Engineering 
3. Guizhou Fenggang 2       Huaying Shanxi Energy Investment 
4. Guizhou Fenggang 3       Beijing Taitan Gas Technology 
5. Guizhou Cengong          Tongren City Energy Investment 
6. Chongqing Qianjiang      Chongqing City Energy Investment 
7. Chongqing East Youyang   Chongqing Mineral Resources Development 
8. Chongqing Chengkou       State Development Investment Corp. 
9. Hunan Longshan           Hunan Huasheng Energy Investment and Development
 
10. Hunan Baojing           Shenhua Geological Exploration 
11. Hunan Huayuan           Huadian Engineering Group 
12. Hunan Sangzhi           China Coal Geological Engineering Corp. 
13. Hunan Yongshun          Hunan Shale Gas Development 
14. Hubei Laifeng Xianfeng  Huadian Hubei Power 
15. Hubei Hefeng            Huadian Hubei Power
 
16. Jiangxi Xiuwu Basin     Jiangxi Natural Gas Holdings 
17. Zhejiang Linan          Anhui Energy Group 
18. Henan Wenxian           Henan Geological Exploration and Mine Investment 
19. Henan Zhongmu           Henan Geological Exploration and Mine Investment