Interim Provisions on the Payment of Royalties for Sino-Foreign Cooperative Exploitation of Onshore Petroleum Resources

Interim Provisions on the Payment of Royalties for Sino-Foreign Cooperative Exploitation of Onshore Petroleum Resources

Order of the Ministry of Finance [1990] No. 3

January 15, 1990
　
Article 1 These Provisions are formulated in order to promote the development of national economy, to expand international economic and technological cooperation, and to encourage the exploitation of China''s petroleum resources on land.
　
Article 2 All Chinese and foreign enterprises, which are engaged in the cooperative exploitation of petroleum resources on land within the territory of the People''s Republic of China, shall pay royalties in accordance with these Provisions.
　
Article 3 Royalties shall be computed and imposed on the basis of the gross output of crude oil or natural gas produced every calendar year from each oil- and-gas field. The rates of the royalties are as follows:
1. Crude oil
the portion of annual gross output of crude oil not exceeding 50,000 tons,shall not be subject to the payment of royalties;
for the portion of annual gross output of crude oil from 50,000 to 100,000 tons, the rate shall be 1%;
for the portion of annual gross output of crude oil from 100,000 to 150,000 tons, the rate shall be 2%;
for the portion of annual gross output of crude oil from 150,000 to 200,000 tons, the rate shall be 3%;
for the portion of annual gross output of crude oil from 200,000 to 300,000 tons, the rate shall be 4%;
for the portion of annual gross output of crude oil from 300,000 to 500,000 tons, the rate shall be 6%;
for the portion of annual gross output of crude oil from 500,000 to 750,000 tons, the rate shall be 8%;
for the portion of annual gross output of crude oil from 750,000 to 1 million tons, the rate shall be 10%;
for the portion of annual gross output of crude oil exceeding 1 million tons, the rate shall be 12.5%.
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