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Regulation of the People's Republic of China on th
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1982.01.30
STATE COUNCIL OF CHINA
  REGULATIONS  OF  THE  PEOPLE'S  REPUBLIC  OF  CHINA  ON  THE
EXPLOITATION  OF OFFSHORE PETROLEUM RESOURCES IN COOPERATION WITH
FOREIGN ENTERPRISES
 (Adopted at the Regular Session of the State Council on January 12,
1982; Promulgated by the State Council on January 30, 1982)
CONTENTS
CHAPTER I GENERAL PRINCIPLES
CHAPTER II RIGHTS AND OBLIGATIONS OF THE PARTIES TO PETROLEUM CONTRACTS
CHAPTER III PETROLEUM OPERATIONS
CHAPTER IV SUPPLEMENTARY PRINCIPLES
CHAPTER I GENERAL PROVISIONS
 @@  Article  1.  In  the  interests  of developing the national
economy and expanding  international  economic  and technological
cooperation,  these Regulations  are  formulated, on the premise
of  safeguarding  national sovereignty and economic interests, to
permit  foreign  enterprises  to participate  in the cooperative
exploitation of offshore petroleum resources of the People's Republic
of China.
 @@  Article  2.  All petroleum resources in the internal waters,
territorial sea  and  continental shelf of the People's Republic of
China and in all sea areas  within  the  limits  of  national
jurisdiction  over  the  maritime resources  of  the  People's
Republic of China are owned by the People's Republic of China.
 In  the  sea areas referred to in the preceding paragraph, all
buildings and structures  set  up and vessels operating to exploit
petroleum, as well as the corresponding onshore oil (gas) terminals
and bases, shall be under the jurisdiction of the People's Republic of
China.
 @@ Article 3. The Government of the People's Republic of China
shall protect,  in accordance with the law, the investments of foreign
enterprises participating  in  the  cooperative  exploitation of
offshore  petroleum resources,  the  profits due to them and their
other  legitimate rights and interests,  and  shall  protect, in
accordance with the law, the cooperative exploitation activities of
foreign enterprises.
 All  activities  for  the  cooperative exploitation of offshore
petroleum resources within the scope of these Regulations shall be
subject to the laws and decrees of the People's Republic of China and
relevant provisions of  the  State;  all persons and enterprises
taking  part  in  petroleum operations  shall be subject to the
laws  of  China  and  shall accept inspection and supervision by
the competent authorities concerned of the Chinese Government.
 @@  Article  4.  The Ministry of Petroleum Industry of the People's
Republic of  China  shall be the competent authority in charge of the
exploitation of offshore  petroleum  resources  in cooperation with
foreign enterprises, and shall determine the forms of cooperation and
demarcate areas of cooperation in  accordance with the zones and
the  surface  areas  of  cooperation designated by the State; it
shall work out a plan for the exploitation of offshore petroleum
resources in cooperation with the foreign enterprises in accordance
with  long-term  state  economic  plans, formulate operation and
management  policies  for the cooperative exploitation of offshore
petroleum  resources  and  examine  and  approve  the  overall
development program for offshore oil (gas) fields.
 @@ Article 5. The China National Offshore Oil Corporation (CNOOC)
shall have exclusive and overall responsibility for the work of
exploiting  offshore   petroleum   resources  in  the  People's
Republic of China in cooperation with foreign enterprises.
 CNOOC  shall  be  a state corporation with the qualifications of a
juridical person  and  shall have the exclusive right to explore for,
develop, produce and  market  the petroleum within the zones of
cooperation with foreign enterprises.
  CNOOC   may,  as  the  work  requires,  establish  regional
corporations, specialized  corporations  and overseas representative
offices to carry out the tasks delegated by the head office.
 @@  Article  6. CNOOC shall, by means of calling for bids and
signing petroleum  contracts,  cooperate  with foreign enterprises
to  exploit petroleum  resources  in  accordance with the zones,
surface areas and areas of cooperation with foreign enterprises for
the exploitation of petroleum resources.
 The  petroleum  contracts  referred to in the preceding paragraph
shall come into  force after approval by the Foreign Investment
Commission of the People's Republic of China.
 All  documents  signed  by CNOOC for other forms of cooperative
exploitation of  petroleum  resources utilizing technology and funds
provided by foreign enterprises shall also be subject to approval
by the Foreign Investment Commission of the Peopl

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