In what has been hailed a long-awaited opening of the energy market, China has invited foreign companies to seek and produce oil and gas within the country, according to Reuters.
The move will open up the industry to both international and domestic firms other than major energy companies run by the state. Starting May 1, 2020, firms registered in China with 300 million ($43 million) in net assets will get the green light to participate in oil and gas exploration and production.
Previously, international companies were only permitted to enter the industry via joint ventures or cooperation with Chinese firms. Now, mining permits will be valid for five years, with the potential to extend a further five later on.
According to Reuters, China imports 70 percent of the crude oil it refines and nearly half of its natural gas consumption.