China Petroleum Exploration ›› 2021, Vol. 26 ›› Issue (1): 99-107.DOI: 10.3969/j.issn.1672-7703.2021.01.008

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Impact of oil and gas exploration and exploitation access release on the exploration activities of giant state-owned petroleum enterprises in China#br#

Liu Yazhao, Zhang Haijun, Liu Chaoying   

  1. Sinopec Petroleum Exploration and Production Research Institute
  • Online:2021-01-13 Published:2021-01-13
  • Supported by:
     

Abstract: Since 2015, a series of policies have been issued in China aimed at reform of mining rights. A key element in these polices
is reducing restrictions on access to oil and gas exploration and exploitation. This will inevitably have a major impact on existing
patterns of domestic oil and gas exploration and exploitation. This paper investigates the effect of opening the mining rights
market and changing the mode of transferring mining rights for oil and gas exploration and development activities. Comparisons
are drawn between the modes of mining rights transfer in China and overseas, and policy reform analyzed in terms of its effect in
releasing access restrictions on oil and gas exploration and exploitation. Corresponding measures to help the various parties adapt
to the new policies are suggested. The overall aim is to better embody the spirit of oil and gas mining rights reform, effectively
enhance China’s capacity to secure oil and gas resources, and to realize the sustainable development of state-owned oil and gas
enterprises. To help achieve this, five recommendations are made on two levels, the state and the oil companies. Broadly, these are:establishment of a single unified transfer platform to release exploration blocks regularly in batches, exemption from paying royalties for obtained oil and gas mining rights with compensations, improvement in the procedures for mining rights transfer,
strengthening overall evaluation and selection of blocks within the same basin, and implementing a management evaluation system that is appropriate for competitive transfers.

 

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