China to Open Up Upstream Sector: Press

China to set to allow foreign companies for the first time to explore for and produce oil and gas on their own without having to form partnerships with state-owned majors, Reuters reported on January 9.

From May 1 2020, foreign operators registered in China with net assets worth yuan 300mn ($43.2mn) or more will be able to secure upstream permits, the country’s natural resources ministry said in a presentation. These permits will be valid for five years at initial registration and include a potential five-year extension option.

The loosening of restrictions also applies to domestic companies.

Currently the Chinese upstream sector is dominated by Beijing’s big three state oil companies CNPC, Sinopec and Cnooc. Foreign companies typically must form joint ventures with them in order to gain access.