China's governance over offshore oil and gas development and management

Ocean Development and International Law

Volumn 35, Issue 4, 2004, Pages 339-364

  Keyuan, Zou ^a  

^a NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

Author keywords

China; Environmental management; Foreign investment; Joint development; Offshore oil and gas

Indexed keywords

ENVIRONMENTAL PROTECTION; GAS INDUSTRY; LEGISLATION; OFFSHORE ENGINEERING; OIL INDUSTRY; POLLUTION CONTROL;

ASIA; CHINA; EASTERN HEMISPHERE; EURASIA; FAR EAST; WORLD;

EID: 8744316970     PISSN: 00908320     EISSN: None     Source Type: Journal    
DOI: 10.1080/00908320490508895     Document Type: Article

References (114)

1. International Energy Agency, [i Oil Market Report: A Monthly Oil Market and Stocks Assessment i], 10 October 2003, at 12.
2. [i CCH Asia China E-News Alert i], No. 43, February 2004.
3. [i CCH Asia China E-News Alert i], No. 43, February 2004.
4. Wang Shanshu, "Our Exploration for and Exploitation of Offshore Oil and Gas Resources," in China Institute for Marine Development Strategy (ed.), [i Law and Policy in Marine Affairs i], Vol.2 (Beijing; Ocean Press, 1992)(in Chinese), at 152.
5. "China to Invest Heavily to Explore Offshore Oil Resources," [i China Economic News i], 8 January 2001, at 6.
6. Zeng Chengkui and Luo Yuluo (eds.), [i Marine Affairs of Contemporary China i] (Beijing: China Social Sciences Publisher, 1985)(in Chinese), 206-209.
7. Kim Woodard, "Development of China's Petroleum Industry: An Overview," in Fereidun Fesharaki and David Fridley (eds), [i China's Petroleum Industry in the International Context i](Boulder and London: Westview Press, 1986), at 103.
8. C. Paul Hallwood, [i Transaction Costs and Trade between Multinational Corporations: A Study of Offshore Oil Production i] (Boston: Unwin Hyman, 1990), at 163.
9. "More oil found in the South China Sea," available at www.china.daily.com.cn, 14 June 2001.
10. "Oil and gas reserves in our sea areas could amount to more than 40 billion tons of oil equivalent," [i People's Daily i] (in Chinese), 26 February 2004, at 1.
11. "China expects offshore production to buttress overall output target," [i Oil and Gas Journal i], Vol. 99, Issue 51, Dec 17, 2001, at 58.
12. Article 28 (2) of the Regulations on the Exploitation of Onshore Petroleum Resources in Cooperation with Foreign Enterprises, in [i People's Daily i] (in Chinese), 11 October 2001, at 5.
13. "Offshore Oil and Gas Industry," [i China Ocean Yearbook 2002 i] (Beijing: Ocean Press, 2003)(in Chinese), at 123.
14. [i China Ocean Yearbook 2002 i] (Beijing: Ocean Press, 2003)(in Chinese ), at 123.
15. Article 9 of the Constitution.
16. English text is available in Office of Policy, Law and Regulation, State Oceanic Administration (ed.), [i Collection of the Sea Laws and Regulations of the People's Republic of China i] (Beijing: Ocean Press, 1998), 233-252.
17. Article 3 of the Law of Mineral Resources.
18. Texts of the regulations are available at http://www.mlr.gov.cn (accessed 25 February 2004).
19. English text is available in Office of Policy, Law and Regulation, State Oceanic Administration (ed.), supra note 15, 186-190.
20. Article 11 of the Law on the Territorial Sea and Contiguous Zone, supra note 18.
21. English version is available in Maritime Institute of Malaysia, [i MIMA Bulletin i], Vo. 7(1), 1999, 27-29.
22. Articles 3-4 of the Law on the Exclusive Economic Zone and Continental Shelf, supra note 20.
23. Article 7 of the Law on the Exclusive Economic Zone and Continental Shelf, supra note 20.
24. Information Office of the State Council, "China's Policy on Mineral Resources," [i People's Daily i] (in Chinese), 24 December 2003, at 6.
25. "National Program on Marine Economic Development," [i China Ocean News i] (in Chinese), 6 February 2004, at 2.
26. English text of the 1982 Regulations is available in Office of Policy, Law and Regulation, State Oceanic Administration (ed.), supra note 15, 307-317;
27. 2001 revised Regulations can be found in People's Daily (in Chinese), 12 October 2001, at 5.
28. Article 4 of the Law of Mineral Resources, supra note 15.
29. Li Yining, "Report on the Deliberation Result of the Draft Law of Mineral Resources of the People's Republic of China from the Legal Committee of the National People's Congress," at the 21st Session of the 8th NPC, 23 August 1996, reprinted in Jiang Ping (ed.), [i The Comprehensive Explanation on Laws of the People's Republic of China i] (China Democracy and Legal System Press, 2003)(in Chinese), Vol. 11, at 543.
30. "Reply by the State Council Office on the Guiding Catalogue of Industries for Foreign Investment," 4 March 2002, at http://www.chinalaw.gov.cn (accessed 10 March 2004).
31. "Reply by the State Council to the Question on Unified Work for Cooperation with Foreigners in Petroleum Exploration and Exploitation," 12 June 1980, at http://www.chinalaw.gov.cn (accessed 10 March 2004).
32. Michael J. Moser, "Legal Aspects of Offshore Oil and Gas Exploration and Development in China," in Michael J. Moser (ed.), [i Foreign Trade, Investment, and the Law in the People's Republic of China i] (Hong Kong: Oxford University Press, 1987), at 271.
33. "Cooperation," at CNOOC website http://211.154.167.192:81/servlet/Node?Node=10896 (accessed 24 February 2004).
34. "Notice on Foreign Cooperative Areas and Blocks in China Seas in 2003," at http://cnooc.chinaedn.net:81/servlet/Category?Node=10023 (accessed 6 January 2004).
35. "CNOOC's profits broke the record last year," [i China Ocean News i] (in Chinese), 3 February 2004.
36. [i People's Daily i] (in Chinese), 22 March 2004, at 6.
37. "CNOOC strides forward into the world," [i China Ocean News i] (in Chinese), 25 March 2003.
38. "CNOOC outlines oil, natural gas output targets," China Daily, 9 March 2004 and "CNOOC sketched the mid- and long-term blueprint," [i People's Daily i] (in Chinese), 19 July 2003, at 6.
39. Guan Zijun and Ren Guoping, "Analysis of the Strength of China's Offshore Petroleum," [i Ocean Development and Management i] (in Chinese), Vol. 17 (4), 2000, at 14.
40. "CNOOC's development faces five challenges," [i China Ocean News i] (in Chinese), 2 March 2004.
41. Peter Odell, "Offshore Resources: Oil and Gas," in R.P. Barston and Patricia Birnie (eds.), [i The Maritime Dimension i] (London: George Allen & Unwin, 1980), at 95.
42. Article 6 of the Detailed Implementing Rules, at http://www.chinalaw.gov.cn/jsp/jalor/disptext.jsp?recno=17&ttlrec=66. (accessed 22 March 2004)
43. Wang Shanshu, supra note 4, at 153.
44. Lai Wanzhong, "Launch Foreign Cooperation and Speed up Offshore Oil and Gas Development," China Institute for Marine Development Strategy, supra note 4, at 160.
45. Zhang Zhenkai, "Formulas and Legal Characteristics of Contracts on the Exploitation of Offshore Oil with Foreign Cooperation in China," Law and Policy in Marine Affairs, Vol. 1 (Beijing: Ocean Press, 1990) (in Chinese), 188-189.
46. Zhiguo Gao, [i International Petroleum Contracts: Current Trends and New Directions i] (London: Graham & Trotman/Martinus Nijhoff, 1994), at 158.
47. "China Oil Corp Signs Sharing Agreement with Santa Fe," [i Asia Pulse i], 11 May 2001.
48. Lai Wanzhong, supra note 44, at 160.
49. Article 8 of the 1982 Regulations, supra note 26.
50. Zhiguo Gao, supra note 46, at 157.
51. "China's largest offshore oilfield is in production," [i China Ocean News i] (in Chinese), 7 January 2003.
52. "Multi-billion oil, gas deals clinched," [i China Daily i], 20 August 2003
53. "The exploration and development of oil and gas in the East China Sea welcomes a new situation," [i People's Daily i] (in Chinese), 20 August 2003, at 6.
54. "CNOOC enjoy 100% profit of its new findings in the South China Sea," [i SinoCast China Business Daily News i], Dallas, 16 September 2002.
55. "Chinese side takes the position of chief manager after twenty years of cooperative development of offshore oilfields," [i China Ocean News i] (in Chinese), 26 January 1999.
56. "China expects offshore production to buttress overall output target," supra note 10, at 58.
57. Article 10 of the 1982 Regulations, supra note 26.
58. Text is available at http://www.mir.gov.cn/information/info/querying/gettingInfoRecord.asp?in foIdx=493 (accessed 15 June 2001).
59. Zhiguo Gao, supra note 46, at 178.
60. David B. Keto, [i Law and Offshore Oil Development: The North Sea Experience i] (New York: Praeger Publishers, 1978), at 103.
61. "Interim Regulations on Resources Taxes," which was issued by the State Council on 25 December 1993 and came into effect on 1 January 1994, at http://www.mlr.gov.vn/project/querystat/multdocview.jsp?ICID=zyszx accessed 25 February 2004).
62. "Provisions on the Exemption of Customs Duties and Consolidated Industrial and Commercial Tax for Imported and Exported Goods Used in Sino-Foreign Cooperative Offshore Petroleum Development," General Bureau of Customs and Ministry of Finance, 1 April 1982, at http://www.chinalaw.gov.cn (accessed 10 March 2004).
63. "Circular of the State Council on the Distribution of the Program on Income Tax-Sharing Reform," 31 December 2001, available at http://www.chinalaw.gov.cn (accessed 10 March 2004).
64. Zhang Zhenkai, supra note 45, 191-192.
65. "Certain Provisions on the Scope of Jurisdiction for the Maritime Court to Deal with Cases," [i Supreme People's Court i], 9 August 2001, at http://www.chinalaw.gov.cn (accessed 10 March 2004).
66. English text is available in Office of Policy, Law and Regulation (ed), supra note 15, 331-342.
67. Maria Gavouneli, [i Pollution from Offshore Installations i](London: Graham & Trotman/Martinus Nijhoff, 1995), at 64.
68. English text is available in Office of Policy, Law and Regulation, State Oceanic Administration (ed.), [i Collection of the Sea Laws and Regulations of the People's Republic of China i], 3rd Edition (Beijing: Ocean Press, 2001), 216-250.
69. Article 5 of the 1983 Regulations, ibid.
70. The Law on Environmental Impact Assessment was adopted on 28 October 2002 and came into force on 1 September 2003. According to it, the environmental impact assessment for offshore constructions including oil platforms and installations is based on the relevant provisions of the Law on Marine Environmental Protection. Text is available at http://www.sdpc.gov.cn/b/b200211071.htm (accessed 30 March 2004).
71. Text is found in [i China Ocean News i] (in Chinese), 25 June 2002.
72. "Marine Environmental Protection," [i China Ocean Yearbook 2002 i] (Beijing: Ocean Press, 2003)(in Chinese), at 330.
73. Article 15 of the Provisional Provisions: after the production of the offshore oil/gas field, the enterprise or operator should evaluate the environmental quality of the surrounding sea areas every four years.
74. "Two environmental measures are implemented in the South China Sea for petroleum exploration this year," [i China Ocean News i] (in Chinese), 11 June 2002.
75. Procedures for Preparation and Approval of the Oil Spill Emergency Response Plan in Offshore Oil Exploration and Exploitation, 10 February 1995, SOA, available at http://www.soa.gov.cn/hyhb/3005.htm (accessed 20 February 2004).
76. Article 20 of the Implementing Measures for the Regulations concerning Environmental Protection in Offshore Oil Exploration and Exploitation, available at http://www.soa.gov.cn/hyhb/3004.htm (accessed 20 February 2004).
77. Provisions on the Use of Anti-oil Chemicals in Offshore Petroleum Exploration and Exploitation, 20 August 1992, SOA, available at http://www.soa.gov.cn/hyhb/3006.htm (accessed 20 February 2004).
78. "Marine Environmental Protection," supra note 76, at 339.
79. English text is available in Office of Policy, Law and Regulation (ed), supra note 15, 362-372.
80. English text is available in Office of Policy, Law and Regulation (ed), supra note 15, 422-430.
81. November Bulletin, at http://www.soa.gov.cn/hyhb/qingfei/200311/11yue.htm (accessed 9 February 2004).
82. "Beihai Bureau inspects foreign oil platform," [i China Ocean News i] (in Chinese), 24 October 2000, at 1.
83. "Introduction of high techniques to marine environmental monitoring and several pollution accidents from oil platforms were punished," [i People's Daily i] (in Chinese), 9 January 2002, at 6.
84. Text is available in [i China Ocean News i] (in Chinese), 23 July 2002, at 3.
85. Text is appended to Zhiguo Gao (ed.), [i Environmental Regulation of Oil and Gas i] (London: Kluwer Law International, 1998), 459-463.
86. Patricia D Park, [i Energy Law and the Environment i] (London: Taylor and Francis, 2002), at 150.
87. Text is available at http://www.sdpc.gov.cn/b/b200212131.htm (accessed 30 March 2004).
88. "The Statistical Bulletin on National Economy and Social Development of the People's Republic of China in 2003," [i People's Daily i] (in Chinese), 27 February 2004, at 6.
89. International Labour Office, [i China and Malaysia: Social and Economic Effects of Petroleum Development i] (Geneva, 1987), at 39.
90. British Institute of International and Comparative Law, [i Joint Development of Offshore Oil and Gas: A Model Agreement for States for Joint Development with Explanatory Commentary i] (London: British Institute of International and Comparative Law, 1989), at 45.
91. Ibrahim F. I. Shihata and William T. Onorato, "Joint Development of International Petroleum Resources in Undefined and Disputed Areas," in G.H. Blake, M.A. Pratt, & C.H. Schofield (eds.), [i Boundaries and Energy: Problems and Prospects i] (London: Kluwer Law International, 1998), 436-437.
92. [i Selected Works of Deng Xiaoping i], Vol. 3, at 87.
93. "Wu Bangguo proposes a multiple cooperation for oil in the Spratly Islands," [i Lianhe Zaobao i], 1 September 2003.
94. Lin Zhong, "Scholarly Discussion on China and Joint Development," [i Modern Legal Science i] (in Chinese), 1998, No. 1, at 75.
95. "Chinese, Philippine firms join forces to look for oil in South China Sea," [i Agence France Presse i], 13 November 2003.
96. "RP-China oil exploration," [i BusinessWorld i], Manila, 12 November 2003.
97. Xie Ye, "Crude-oil quandary causes concern," [i China Daily i], 24 February 2004.
98. "Sixteen firms want to hunt for oil in Philippines," Reuters, 3 March 2004, at http://www.forbes.com/business/newswire/2004/03/03/rtr1284135.html (accessed 26 March 2004).
99. "China accused over disputed Spratly Islands," [i Energy Compass i], 18 July 2002, in http://80-proquest.umi.com.libproxy1.nus.edu.sg (accessed 24 February 2004)
100. Lin Zhong, supra note 99, at 75.
101. David D. Peng, "China's Petroleum Industry: Oil and Gas Development Policy and Legislation," in Thomas W. Wälde & George K. Ndi (eds.), [i International Oil and Gas Investment: Moving Eastward? i] (London: Graham & Trotman/Martinus Nijhoff, 1994), at 103.
102. Chen said that "when a suitable joint venture project comes forward from the Japanese, we shall recommend go ahead to the (Chinese) government," cited from "Much Needed Boost for China Offshore Industry," [i Lloyd's List i], 19 October 1991.
103. [i CCH Asia China E-News Alert i], No 43, February 2004.
104. Ministry of Land and Resources, Communiqué on Land and Resources of China, at http://www.mlr.gov.cn/project/querystat/multdocviewg.jsp?ICID=2003-07-15-1099143 660 (accessed 8 April 2004).
105. "Offshore oil company makes slick purchase," China Daily, 19 January 2002 and Judy Maksoud, "Foreign cooperation and acquisitions add reserves: CNOOC brings Chinese fields into production," [i Offshore i], July 2003, at 40.
106. Robert J. Beck, [i Worldwide Petroleum Industry Outlook: Nineteenth Edition 2003-2007 Projection to 2012 i] (Tulsa, Oklahoma: PennWell Corporation, 2002), at 316.
107. [i CCH Asia China E-News Alert i], No.43, February 2004.
108. "Bohai oilfield will become a second largest oilfield in China," [i China Ocean News i] (in Chinese), 6 February 2004.
109. "Future based on own minerals," [i China Daily i] (HK Edition), 24 December 2003.
110. "Wen Jiabao chairs the meeting on reporting the study phase of the China's Strategy on Sustainable Development of Oil and Gas Resources," [i People's Daily i] (in Chinese), 31 October 2003, at 1.
111. "China's oil taken hostage," [i The Economist i], 14 July 2001, 28-29.
112. David Lague, "The Quest for Energy to Grow," [i Far Eastern Economic Review i], June 20, 2002, at 14.
113. "China moves forward on strategic oil reserve plan," [i Platt's Oilgram News i], New York, 8 December 2003, Vol 81, Issue 235, available at http://80-proquest.umi.com.libproxy1.nus.edu.sg (accessed 24 February 2004).
114. Yan Li and Li Jie, "Calling for oil legislation," [i People's Daily i] (in Chinese), 20 January 2004, at 14.