China would introduce market-oriented reform along industry chain of oil and gas with opening up in the upstream as the core part, said a report by Shanghai Securities News on Wednesday citing an anonymous source.
Competitive licensing of exploration rights with oil and gas blocks would be introduced rather than current franchising system monopolized by four state-owned oil companies, said the report. China also would have strict exit mechanism of exploration rights and raise costs of holding exploration rights.
Mechanism on transferring of exploration rights and reserves would be established, added the report. Laws and regulations on mineral resources, registration of exploring and developing oil and gas blocks, transferring of exploration rights as well as establishment of Sino-foreign joint venture would be revised, according to the source
. Chinese central government is expected to announce an overall reform plan of oil and natural gas industry by the end of 2015.
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