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Oil Exploration Restrictions to Be Eased

China will remove the protective umbrella for domestic oil exploration firms and ease related restrictions for verseas investors early next year.

"The priority usage of domestic equipment, personnel and services in China's joint oil explorations with foreign companies will be revoked," Zhong Weizhi, an official with the Ministry of Land and Resources was quoted as saying.

This is part of the State's amendment on two sets of regulations for exploiting offshore and onshore petroleum resources in cooperation with foreign parties, which were formulated in 1982 and 1993, the official said.

"Some of the regulations involving protective articles on domestic companies must be changed before China's entry into the World Trade Organization," he said.

The amendment is also expected to rule out the mandate on technology transfer from overseas companies during the contract period, sources with the State Economic and Trade Commission said.

Analysts said that the move will greatly boost the cooperation between Chinese and overseas companies, the paper said.

The sources also said that the amendment will extend the exclusive right of joint offshore exploration with overseas oil companies to China Petrochemical Corp (Sinopec Group), one of the country's two oil giants besides China National Petroleum Corp (CNPC).

The monopoly of China National Offshore Oil Corporation on offshore oil exploration will remain intact, the paper said.

(China Daily 12/26/2000)

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