Foreign players to boost oil and gas exploration

BEIJING — As a vital step in easing market access for foreign investors, China has announced opening up the upstream exploration of its oil and natural gas resources by scrapping joint-venture restrictions.

Taking effect on July 30, the move aims to attract overseas participation in the field and advance the country’s ongoing reform of energy systems.

Spurred by the growth in energy consumption, China has become the world’s largest importer of crude oil and natural gas, with its dependency on foreign crude oil and natural gas hitting 69.8 percent and 45.3 percent, respectively, in 2018, according to China National Petroleum Corp.

In contrast, the country’s crude oil output had slipped for three consecutive years by the end of last year.

Commenting on the situation, Lin Boqiang, director of the China Centre for Energy Economics Research at Xiamen University, said the measure to facilitate overseas investment in exploration will inject impetus into China’s oil and gas production.

“China boasts advantages in technologies of exploring conventional oil and natural gas but lags behind some foreign counterparts in unconventional exploration,” Lin said. “It is, therefore, necessary to promote international cooperation in the unconventional sphere.”

The measure is highly praised by leading overseas energy companies who expect wider market access and more opportunities in China.

Yang Xiaoping, president of British Petroleum China, said the decision will boost the Chinese energy market, create a business environment with more fairness and openness and further accelerate the technological upgrading of the country’s oil and natural gas exploration.