• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 hour Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 min GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour What-If - Russia decided to take out the Saudi and Kuwait oilfields
  • 4 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "As the Earth Cools, the Climate Change Hoax Heats Up" by Michelle Edwards
  • 2 hours PROFOUND ! "Russian Ruble relaunched linked to Gold and Commodities" by the famous Ronan Manly -- (NOTE the censorship by the MultiPolar New World Order of The Great Reset))
  • 1 day 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"

China To Open Oil, Gas Industry to Foreign Companies

China will open its arms for foreign oil and gas companies, and for local private E&Ps, the country’s Ministry for Natural Resources told media as quoted by the China Global Television Network.

The move will “stimulate market vitality” the media quoted the official as saying.

Reuters added that there will be certain limits on who will gain access to China’s oil and gas deposits. According to the Ministry of Natural Resources, these will be companies with net assets worth no less than $43 million.

China has been actively looking for ways to boost domestic oil and natural gas production to alleviate its dependence on imports. However, this has proved difficult to do relying only on the state-owned energy giants.

The change, effective May 1 this year, has been eagerly awaited by the industry because although China is home to some 25.7 billion barrels of proven oil reserves, a lot of it is locked in geologically challenging formations. What’s more, natural depletion at many of its developed oil fields is taking its toll, driving an overall decline in domestic oil production.

“China is accelerating the sector reform due to growing energy security concerns,” an IHS Markit analyst told Reuters. “Vitalising the industry by diversifying the participants, including foreign and private investors, is the focus of that reform.”

China currently imports about 70 percent of the crude oil it processes. That’s too high a level for comfort, especially right now, with tensions running high in the Middle East, which is one of China’s largest suppliers of crude. Developing domestic resources seems quite urgent.

The change effected by Beijing will allow foreign companies to explore and develop oil and gas fields in China without setting up a joint venture with a Chinese company – a rule until now. This, according to Reuters, means the state oil giants will have practically have to cede some of the oil and gas assets they control by virtue of being state companies to private companies.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News