Offshore Oil-Field Services

• Offshore oil-field services, including geological, geophysical and other scientific prospecting services, and sub-surface surveying services are permitted in the form of petroleum exploitation in cooperation with Chinese partners.

• Foreign service suppliers may engage in petroleum exploitation in cooperation with China National Petroleum Corp. (CNPC) in designated areas approved by the Chinese government.   

• The foreign service supplier must establish a branch, subsidiary or representative office within China and register in accordance with applicable laws.  The locations of these offices will be determined through consultation with CNPC.  

• The foreign service supplier must open its bank account with a bank that has been approved by the Chinese authorities to engage in foreign exchange business within China.

• The foreign service supplier must promptly and accurately  furnish CNPC with data records and samples and technological, economic, accounting and administrative reports related to its petroleum operations.  

• CNPC will own all of the data records, samples, vouchers and other original information acquired during the implementation of the petroleum operations.  

• The foreign service supplier’s investment must be made in US dollars or other hard currencies.

• Managers, executives and specialists of a representative office, branch or subsidiary in China, temporarily moving as intra-corporate transferees, will be permitted an initial stay of three years.

• Managers, executives, and specialists of foreign-invested enterprises in China will be granted a long-term stay permit as stipulated in the terms of contracts concerned or an initial stay of three years, whichever is shorter.

• Service salespersons who are not based in China, and who meet certain other conditions set forth in China’s services schedule, are limited to a 90-day stay.  

• The cross border supply of oil-field services by a foreign supplier is not subject to market access restrictions and is accorded national treatment.

• The provision of oil-field services outside of China is not subject to market access restrictions and is accorded national treatment. 

• The conditions of ownership, operation and scope of activities for an existing foreign service supplier, as set out in the supplier’s contract or shareholders’ agreement or in a license establishing or authorizing the supplier’s operation or supply of services, will not be made more restrictive than they were on December 11, 2001.