China to open oil, gas exploration, production to foreign firms

BEIJING: China will allow foreign companies to take part in oil and gas exploration and production in the country, in what officials hailed Thursday as a “major reform” opening up the industry.

The Ministry of Natural Resources said foreign firms registered in China with net assets of not less than 300 million yuan ($43 million) will be eligible to obtain oil and gas mining rights.

The change takes place from May 1 and also applies to domestic companies.

“Opening to both domestic and foreign enterprises is a major reform measure,” said Deputy Minister of Natural Resources Ling Yueming at a news conference.

In the past, international companies could only enter the industry by working with Chinese firms, such as state-owned enterprises.