Regulations of the People's Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises

Regulations of the People's Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises

January 30, 1982

Chapter I General Provisions

Article 1 In the interest of developing the national economy and expanding international economic and technological cooperation, these Regulations are formulated, on the premise of maintaining national sovereignty and economic interests, to permit foreign enterprises to participate in the cooperative exploitation of offshore petroleum resources of the People''s Republic of China.

Article 2 All petroleum resources in the internal waters, territorial sea and continental shelf of the People''s Republic of China and in all sea areas within the limits of national jurisdiction over the maritime resources of the People''s Republic of China are owned by the People''s Republic of China. In the sea areas referred to in the preceding paragraph, all buildings and structures set up and vessels operating to exploit petroleum, as well as the corresponding onshore oil (gas) terminals and bases, shall be under the jurisdiction of the People''s Republic of China.

Article 3 The Government of the People''s Republic of China shall protect, in accordance with the law, the investments of foreign enterprises participating in the cooperative exploitation of offshore petroleum resources, the profits due to them and their other legitimate rights and interests, and shall protect, in accordance with the law, the cooperative exploitation activities of foreign enterprises. All activities for the cooperative exploitation of offshore petroleum resources within the scope of these Regulations shall be subject to the laws and decrees of the People''s Republic of China and relevant provisions of the State; all persons and enterprises taking part in petroleum operations shall be subject to the laws of China and shall accept inspection and supervision by the competent authorities concerned of the Chinese Government.

Article 4 The Ministry of Petroleum Industry of the People''s Republic of China shall be the competent authority in charge of the exploitation of offshore petroleum resources in cooperation with foreign enterprises, and shall determine the forms of cooperation and demarcate areas of cooperation in accordance with the zones and the surface areas of cooperation designated by the State; it shall work out a plan for the exploitation of offshore petroleum resources in cooperation with the foreign enterprises in accordance with long-term state economic plans, formulate operation and management policies for the cooperative exploitation of offshore petroleum resources and examine and approve the overall development program for offshore oil (gas) fields.

Article 5 The China National Offshore Oil Corporation (CNOOC) shall have exclusive and overall responsibility for the work of exploiting offshore petroleum resources in the People''s Republic of China in cooperation with foreign enterprises. CNOOC is a state corporation with the status of a legal person and has the exclusive right to prospect for, develop, produce and market the petroleum within the zones of cooperation with foreign enterprises. CNOOC may, as the work requires, establish regional corporations,specialized corporations and overseas representative offices to carry out the tasks delegated by the head office.

Article 6 CNOOC shall, by means of calling for bids and signing petroleum contracts,cooperate with foreign enterprises to exploit petroleum resources in accordance with the zones, surface areas and areas of cooperation with foreign enterprises for the exploitation of petroleum resources.
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