Maide unconventional gas For further expand cooperation in matters of foreign

methane foreign cooperation

Foreign Briefing

Coalbed methane gas energy as one of the three members of the family, and the exploration and development of natural gas, gas hydrates, as more and more attention around the world. Global buried at 2000 m depth of about 240 trillion proppant production‍ cubic meters of CBM resources. The United States is the world's countries most successful commercial development of coalbed methane, and from 1983 to 1995 in 12 years, annual CBM production soared from 170 million cubic meters to 25 billion cubic meters, in 2005 production reached 50 billion cubic meters of CBM meters. Expected after the 2020-2030 years ago, gas in the world energy mix will catch up and exceed the proportion of coal and oil. Experts predict that by 2010 China will reach 30 billion cubic meters of gas gap; 2020 will reach 100 billion cubic meters. In China's primary energy consumption structure, coal accounted for 74.6%, 17.6% oil, natural gas accounted for only 2%, well below the world average of 23%. With the final energy demand gradually to quality and efficient clean energy transformation, rapid growth in demand for natural gas. Development and utilization of coal-bed methane gas in the energy consumption can be constituted in the proportion increased to 10% in 2010.

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For further expand cooperation in matters of foreign ultra lightweight proppant‍ exploitation of coalbed methane notice:

Shang Zi Han [2007] No. 94

Provinces, autonomous regions, municipalities, separately listed cities and Xinjiang Production and Construction Corps, development and reform department, land and resources management department of China National Petroleum Corporation, China Petrochemical Corporation, the China National Coal Group Corporation, Shenhua Group Corporation Limited company, China United Coalbed Methane Co., Ltd.:

In order to improve our coalbed methane (coal gas) treatment and utilization of the status quo, the full introduction of foreign advanced technology and utilization of coalbed methane exploration and exploitation, to achieve security and development, clean development and conservation development goals, approved by the State Council, is to further expand notice of the matter coalbed methane exploitation of foreign cooperation as follows:

First, in accordance with the principles of both break-exclusive franchise to attract domestic and international experience, the strength of enterprises to participate in coalbed methane development, but also to avoid the "bull outside" by the Ministry of Commerce, National Development and Reform Commission jointly with relevant departments in China United Coalbed Methane Co., Ltd. then select a number of outside companies, the State Council approved in the region with foreign enterprises to develop cooperative exploitation of coalbed methane pilot.

Second, the exploitation of coalbed methane pilot enterprises should have the ability and experience of some foreign cooperation, compliance law, capital adequacy, with a range of external cooperation and including the proposed coal-bed methane blocks of coal mining rights or mining rights. List of pilot enterprises with relevant research Posed by the Ministry of Commerce, National Development and Reform Commission, focus on encouraging large state-owned coal mining enterprises and companies involved in oil and gas. Pilot enterprises to declare the matter as follows:

(A) reporting procedures

The applicant enterprises by the provincial commerce department where, after preliminary development and reform department, the Ministry of Commerce, Development and Reform Commission to apply. Enterprises directly under the proppant testing‍ central Ministry of Commerce, Development and Reform Commission to apply directly.

(B) the application materials

A reason to participate in the pilot coalbed methane exploitation of external cooperation;

2, the basic situation of enterprises, including firm size, the main business, development status and development planning;

3, corporate finance and credit, including registered capital, bank credit, corporate financial status reports and audit reports for the last three years and so on;

4, cooperation with foreign enterprises to participate in the project's historical performance reports or relevant certificates;

5 bed methane mining enterprise technology, capacity and other related note, including the list of technical equipment and certificates of employees;

6, other materials that need to provide.

(C) Reporting Time

After the declaration of pilot enterprises related materials submitted, please provincial commerce department and the development and reform departments to do preliminary work in accordance with the notification requirements, November 31 the Ministry of Commerce and the National Development and Reform Commission.

Third, as a partner of foreign companies should have: (1) at least more than five years of experience in the exploration and development of coalbed methane; (2) coalbed methane exploration and development of advanced technologies and corresponding technical team; (3) organization coalbed methane (4) good credit and adequate funding; management capabilities exploration and development operations.

Qualified foreign cooperative audit by the Ministry of Commerce.

Fourth, the pilot enterprises should carry out international cooperation within the region approved by the State Council, the approval process handled in accordance with current regulations.

The two sides need foreign cooperation contract, unless otherwise provided by law, regulation or contract provides otherwise, the contract shall be signed by the foreign enterprise (hereinafter referred to as foreign contractors) to provide exploration funding alone, and bear the risk of exploration; find commercial After mining the value of coalbed methane resources, foreign contractors and the Chinese pilot enterprises developed by joint investment cooperation; construction work of both exploration and development of cooperation can be shared or their sole responsibility, or by a third party engineering construction contracting.

Six foreign contractor in accordance with the contract can recover its investment and expenses from the production of coalbed methane in and get paid. They may, in accordance with relevant state regulations and the contract, it should have shipped abroad or coalbed methane in the territory sales. Domestic sales, generally acquired by the Chinese pilot enterprises can also be set up in our country by foreign contractors for businesses selling to a third party, but not in violation of state regulations concerning the sale of coalbed methane in our country. Foreign investment contracts could legally, profits and other lawful income remitted abroad its recovery.

Seven pilot reference to other matters, "External Cooperation Exploitation of Onshore Petroleum Resources People's Republic of China" (State Council Decree No. 317) management, execution.

Eight coal mining permits have been obtained blocks, stim lab‍ coal bed methane mining process along the ground and underground drainage recovery, coal mining rights to foreign cooperation, are not included in the scope of management of coalbed methane foreign cooperation franchise, but it should be implemented in accordance with relevant laws and regulations in force foreign cooperation or foreign investment.

Nine, the relevant departments should strengthen international cooperation in the exploration and exploitation of CBM activities supervision and management, supervision and cooperation between the two countries strictly enforce the basic requirements for a minimum amount of investment in exploration and construction period.

Department of Commerce

National Development and Reform Commission

MLR

October 17, 2007‍