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China welcomes foreign petro-companies to participate in the prospecting and exploitation of the country's rich resources of oil, natural gas and coalbed methane.

Zhong Weizhi, director of the Geological Exploitation Division of the Chinese Ministry of Land and Resources, offered the invitation Tuesday at the opening meeting of a four-day high-level workshop focusing on Sino-US co-operations in the field.

The ministry has signed an agreement with the US Department of the Interior to enhance co-operation in the field.

Such co-operation will focus mainly on the supervision and management of land and offshore oil and gas prospecting and exploitation, the biddings, leases and transfers of rights in the land rich in oil and gas and the evaluation of specific oil and gas resources, according to Zhong.

Over 200 Chinese and American officials and businessmen attended the workshop.

"The ministry is committed to creating a better environment for the development of domestic oil and gas industries, as well as to international co-operation in the field," he said.

Zhong's division is responsible for issuing certificates for prospecting and the exploitation of oil and gas resources in the country and the transfer of these rights.

Before applying to the ministry for such certificates, applicants should have already been approved by the State Council to start a petro-company or already be engaged in the prospecting and exploitation of oil and gas in the country.

Having made only a small part of the country's huge oil and gas reserves exploitable, China is staging its biggest ever effort to open up its fossil fuel fields.

The amount of investment from domestic sources going into oil and gas prospecting has jumped from 1992's 10 billion yuan (US$1.2 billion) to 18 billion yuan (US$2.2 billion) in 1998.

Those foreign companies wanting to be engaged in oil and gas prospecting and exploitation in western China, on Chinese seas or in certain remote regions in the country and endorsed by the State Council can apply for certain costs to be reduced or wavered.

(China Daily)