State Council, PRC Exploitation of Offshore Oil Resources in Cooperation with Foreign Parties Regulations (Revised)

Promulgated: 23 September 2001
Effective: as of date of promulgation

Main contents: Major amendments to the 1982 Regulations include the removal of the restrictions on technology transfer and domestic component requirements in procurement. Article 13, originally Article 12, now imposes no obligation on foreign contractors to transfer technology to Chinese parties and provides that parties to an oil contract may agree on the personnel required in the oil operation and that they may employ Chinese citizens on a preferential basis. The original requirements on foreign contractors to procure facilities, equipment, materials and services from Chinese suppliers on a preferential basis, as embodied in Articles 18 to 21 in the original version, are deleted in the revised Regulations. On the other hand, the revised Regulations do not affect the exclusive rights and privileges of the China National Offshore Oil Corporation (CNOOC) under the original law. CNOOC continues to be in charge of and enjoy exclusive rights to all cooperative exploration, development, production and sale of offshore oil resources with foreign parties (Article 6).