<p class="title">China will for the first time allow foreign companies to explore for and produce oil and gas in the country, opening up the industry to firms other than state-run energy giants as Beijing looks to boost domestic energy supplies.</p>.<p class="bodytext">From May 1, 2020, foreign firms registered in China with net assets no lower than 300 million yuan ($43 million) will be allowed to take part in oil and gas exploration and production, the Ministry of Natural Resources said at a media conference.</p>.<p class="bodytext">The change will also apply to domestic companies that mee the same asset criteria.</p>.<p class="bodytext">The move comes as part of Beijing's push to increase oil and gas development and bring private capital into the upstream energy business.</p>.<p class="bodytext">Previously, international companies could enter the industry only via joint-ventures or through cooperation with Chinese firms, mainly state-owned majors such as China National Petroleum Company (CNPC), China Petrochemical Corp (Sinopec) or their listed vehicles.</p>.<p class="bodytext">Mineral resources mining permits will be valid for 5 years at initial registration, and can potentially be extended for another 5 years.</p>.<p class="bodytext">When firms apply for extensions, the government will automatically cut the area of the mining/exploration zones by 25% from the originally registered level, the ministry added. ($1 = 6.9297 Chinese yuan) </p>
<p class="title">China will for the first time allow foreign companies to explore for and produce oil and gas in the country, opening up the industry to firms other than state-run energy giants as Beijing looks to boost domestic energy supplies.</p>.<p class="bodytext">From May 1, 2020, foreign firms registered in China with net assets no lower than 300 million yuan ($43 million) will be allowed to take part in oil and gas exploration and production, the Ministry of Natural Resources said at a media conference.</p>.<p class="bodytext">The change will also apply to domestic companies that mee the same asset criteria.</p>.<p class="bodytext">The move comes as part of Beijing's push to increase oil and gas development and bring private capital into the upstream energy business.</p>.<p class="bodytext">Previously, international companies could enter the industry only via joint-ventures or through cooperation with Chinese firms, mainly state-owned majors such as China National Petroleum Company (CNPC), China Petrochemical Corp (Sinopec) or their listed vehicles.</p>.<p class="bodytext">Mineral resources mining permits will be valid for 5 years at initial registration, and can potentially be extended for another 5 years.</p>.<p class="bodytext">When firms apply for extensions, the government will automatically cut the area of the mining/exploration zones by 25% from the originally registered level, the ministry added. ($1 = 6.9297 Chinese yuan) </p>