Regulations of the People's Republic of China on Sino-foreign Cooperation in Exploration of Onshore Petroleum Resources (Revised in 2011)
Regulations of the People's Republic of China on Sino-foreign Cooperation in Exploration of Onshore Petroleum Resources (Revised in 2011)
Regulations of the People's Republic of China on Sino-foreign Cooperation in Exploration of Onshore Petroleum Resources (Revised in 2011)
Order of the State Council [2011] No.606
September 30, 2011
(Promulgated by Order No.131 of the State Council of the People's Republic of China on October 7, 1993, amended for the first time in accordance with the Decision of the State Council on Revising the Regulations of the People's Republic of China on Sino-foreign Cooperation in Exploring Onshore Petroleum Resources dated September 23, 2001, amended for the second time in accordance with the Decision of the State Council on Revising the Regulations of the People's Republic of China on Sino-foreign Cooperation in Exploring Onshore Petroleum Resources dated September 18, 2007), and amended for the third time in accordance with the Decision of the State Council on Revising the Regulations of the People's Republic of China on Sino-foreign Cooperation in Exploring Onshore Petroleum Resources dated September 30, 2011)
Chapter I General Provisions
Article 1 These Regulations are formulated in order to safeguard the development of the petroleum industry and promote international economic cooperation and technical exchange.
Article 2 These Regulations shall apply to Sino-foreign cooperation in exploring onshore petroleum resources within the territory of the People's Republic of China.
Article 3 The petroleum resources within the territory of the People's Republic of China belong to the People's Republic of China.
Article 4 The Chinese government protects according to law the cooperative exploration activities of foreign enterprises involved in the cooperative exploration of onshore petroleum resources as well as their investments, profits and other lawful rights and interests.
The Sino-foreign cooperation in exploring onshore petroleum resources within the territory of the People's Republic of China shall comply with the relevant laws, regulations and rules of the People's Republic of China, and shall be subject to the supervision and administration of related authorities of the Chinese government.
Article 5 The State shall expropriate no investments and proceeds of foreign enterprises participating in the cooperative exploration of onshore petroleum resources. Under special circumstances and in view of the needs of public interests, the State may expropriate part or all of the fair share of petroleum due to foreign enterprises in the cooperative exploration in accordance with legal procedures together with appropriate compensation.
Article 6 The department designated by the State Council shall, within the areas of cooperation as approved by the State Council, be responsible for sectioning blocks of land for cooperative exploration, identifying ways of cooperation, organizing the formulation of related plans and policies, reviewing and approving the overall Sino-foreign cooperative oil (gas) field exploration plan.
Article 7 China National Petroleum Corporation and China Petrochemical Corporation (hereinafter collectively referred to as "Chinese petroleum companies") shall be responsible for business operations in relation to the Sino-foreign cooperation in exploring onshore petroleum resources; including negotiating, executing and performing contracts on cooperative exploration of onshore petroleum resources with foreign enterprises. Chinese petroleum companies shall also have the exclusive right to cooperate with foreign enterprises to carry out petroleum prospecting, exploration and production within the areas approved by the State Council for Sino-foreign cooperation in exploring onshore petroleum resources.
Article 8 Chinese petroleum companies shall, within the areas approved by the State Council for Sino-foreign cooperation in exploring petroleum resources, execute contracts with foreign enterprises on the cooperative exploration of onshore petroleum resources based on the demarcated cooperative region and by means of tender invitation or negotiation.
......