Order of the Ministry of Finance on Promulgating the Provisions concerning the Payment of Royalties for the Exploitation of Offshore Petroleum Resources

Order of the Ministry of Finance on Promulgating the Provisions concerning the Payment of Royalties for the Exploitation of Offshore Petroleum Resources

Order of the Ministry of Finance [1989] No. 1

January 1, 1989

The Provisions concerning the Payment of Royalties for the Exploitation of Offshore Petroleum Resources, which were approved by the State Council on December 5, 1988, are hereby promulgated.

Minister of the Ministry of Finance Wang Bingqian

Attached: Provisions concerning the Payment of Royalties for the Exploitation of Offshore Petroleum Resources
　
Article 1 These Provisions are formulated in accordance with the "Regulations of the People's Republic of China on Sino-Foreign Cooperative Offshore Petroleum Resources Exploitation" for the purposes of promoting the development of national economy, expanding international economic and technological cooperation, and encouraging the exploitation of offshore petroleum resources of China.
　
Article 2 All Chinese and foreign enterprises, which are engaged in the exploitation of offshore petroleum resources pursuant to the law in the inland sea, territorial sea and continental shelf of the People's Republic of China and in any other sea areas under the jurisdiction 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 or natural gas field.
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