China Launches Energy Reforms Pilot in Xinjiang

China’s Ministry of Land and Resources (MLR) on Tuesday announced six oil and gas exploration blocks in country’s Xinjiang Uygur Autonomous Region for public bidding as pilot for oil and gas exploration and exploitation reform, Xinhua Finance reported Wednesday.

The new reform measures are aimed at enhancing oil and gas exploration and exploitation investment as well as promoting diversification of investment entities, the MLR said. Currently the Chinese energy space is dominated by state owned giants like PetroChina and SInopec.  

The oil and gas exploration blocks include Xinjiang Buerjin basin Buerjin area, Tacheng Basin Yumin area, Yili Basin Gongliu area, Tarim Basin Kepingbei area, Tarim Basin Kashi Shule area, as well as Dunhuang Basin southeast Lop Nor area, Xinhua Finance reported.

Any qualified companies could participate in the bidding and the blocks would be given to companies that promise the most exploration work, according to MLR. Companies that won the bidding would get prospecting right valid for three years.

Assessment shows the region has 14 trillion cubic meters of natural gas and 22.8 billion tonnes of oil.