Major changes are coming to mineral resource extraction! These companies have an opportunity

　　Today (9th), the Ministry of Natural Resources held a press conference to introduce the "Opinions on Several Matters Concerning the Reform of Mineral Resource Management (Trial Implementation)" (Natural Resources Regulation [2019] No. 7, hereinafter referred to as the "Opinions") and related information.
　　The "Opinions" will be implemented from May 1 this year and will be valid for three years. It mainly includes three aspects: the reform of the mineral rights transfer system, the reform of oil and gas exploration and exploitation management, and the reform of reserve management.
　　The Ministry of Natural Resources stated today that mineral resource management will undergo major changes. In the future, whether engaging in mineral resource exploration or development, the main way to obtain exploration rights and mining rights is through market competition.
　　This reform mainly includes three aspects: the reform of the mineral rights transfer system, the reform of oil and gas exploration and exploitation management, and the reform of reserve management. In terms of mineral rights, competitive transfer will be promoted. Except for projects with clearly agreed transfers such as rare earths, competitive transfer will be promoted for other mineral types.
　　1. Reform of oil and gas exploration and exploitation management:
　　The highly anticipated oil and gas exploration and exploitation market will be opened. As long as they are domestic and foreign companies registered in the People's Republic of China with net assets of not less than 300 million yuan, they are qualified to obtain oil and gas mining rights in accordance with regulations. Considering the high risks and high investment of oil and gas exploration, the Ministry of Natural Resources has set requirements for the net assets of enterprises based on pilot experience. In addition, enterprises must also meet safety and environmental protection requirements.
　　Yao Huajun, Director of the Mineral Rights Department of the Ministry of Natural Resources: Breaking the market pattern monopolized by a few companies for a long time, the purpose is to increase our domestic oil and gas exploration and development efforts and provide policy dividends for the increase in oil and gas reserves in our country.
　　In addition, the integrated oil and gas exploration and exploitation system is implemented. According to the technical characteristics of oil and gas exploration and exploitation that are different from non-oil and gas minerals, and in response to long-standing problems, if an oil and gas exploration right holder discovers exploitable oil and gas resources, they can carry out exploitation after reporting to the natural resource authorities with registration authority. Oil and gas mineral resource exploration right holders who carry out exploitation shall sign a mining right transfer contract within 5 years and register the mining right in accordance with the law.
　　2. Reform of the mineral rights transfer system:
　　First, promote competitive transfer of mineral rights, and clarify that except for agreed transfer, other mineral rights shall be transferred through open competition by means of bidding, auction, and listing;
　　Second, strictly control agreed transfers. Rare earth and radioactive mineral exploration and exploitation projects or construction projects approved by the State Council may be transferred to specific entities by agreement. The same type of minerals in the deep or upper part of existing mining rights may be transferred to the same entity by agreement;
　　Third, actively promote the transfer of "clean mines", carry out the transfer of "clean mines" for direct transfer of mining rights such as sand, gravel, and soil, and actively promote the transfer of "clean mines" for other mineral types;
　　Fourth, implement the same-level management of exploration right and mining right transfer registration for the same mineral type to solve the problems caused by different levels of management of exploration right and mining right for the same mineral type;
　　Fifth, standardize geological exploration work funded by finance. For exploration projects funded by the central or local finance, no new exploration rights will be set up, and geological exploration work will be carried out based on the project task book. For existing exploration rights, the natural resource authorities may continue to handle the extension of the exploration rights, and after completing the prescribed exploration work, cancel the exploration rights, and the natural resource authorities will publicly and competitively transfer the mining rights to various market entities;
　　Sixth, adjust the term of exploration rights. According to the technical rules of mineral exploration work, the registration period of exploration rights established by means of transfer is extended to 5 years, and each extension period is 5 years. When applying for extension registration of exploration rights, 25% of the initial area should be deducted.
　　3. Reform of reserve management:
　　The classification of mineral resource reserves has been simplified, and the review, filing, and registration matters have been simplified and merged. The registration link and registration certificate are cancelled, and the content of the mineral resource reserve registration certificate is included in the review and filing management, and is no longer used as a requirement for mining right registration. The review and filing results will be used as the basis for statistics.
　　In addition, the scope of government direct review and filing has been reduced. The original 18 review and filing situations have been reduced to 4, that is, only the transfer of exploration rights to mining rights, the change of mineral types and scope of mining rights, the proven geological reserves of oil and gas minerals during the exploration and mining period, the mineral resource reserves with significant changes in the amount of resources during the mining period of other minerals, and the construction project's suppression of important minerals will be reviewed and filed.
　　Why open up?
　　This opening of the oil and gas exploration and exploitation market has attracted attention. What is the reason that prompted the country to make such a big effort to open up the market?
　　Yao Huajun told reporters that low marketization, the contradiction between oil and gas supply and demand, and the lack of growth momentum are the three major reasons for promoting this reform.
　　Speaking of the low degree of marketization, let’s first understand some relevant background of oil and gas resource exploration and development in my country. Oil and gas resources play an important role in my country’s economic and social development. Previously, they have always been controlled by the state as strategic resources. Most of the oil and gas exploration and development are concentrated in several companies such as CNPC, Sinopec, and CNOOC; At the same time, because oil and gas exploration is high-risk and high-tech, the country has also set very high technical thresholds, and only some companies have petroleum and natural gas exploration qualifications. Yao Huajun said that in this system, the number of market players is relatively small and relatively single, that is to say, the degree of market competition is insufficient.
　　Although my country's oil and gas resources are relatively abundant, the degree of proven reserves is not high. Data from the Ministry of Natural Resources shows that my country's current oil proven rate is 31% and natural gas is 16%.
　　Especially with the rapid growth of the domestic economy, the demand for energy has grown very rapidly, and the contradiction between oil and gas supply and demand is also relatively large. Data shows that my country's external dependence on oil has been increasing year by year, reaching more than 70% in 2019, and more than half of the consumption relies on imports. The external dependence on natural gas has also reached 45%.
　　Finally, the lack of growth momentum in the oil and gas field is also an important reason for promoting reform. CNPC, Sinopec, CNOOC and Yanchang Petroleum all invest at home and abroad, with long lines and many blocks, and the funds invested in exploration each year are limited, and there is insufficient investment in a large number of mining blocks.
　　After opening up, more market players will be introduced into my country's oil and gas exploration and development field. While improving exploration and development efficiency, it can increase my country's oil and gas resource reserves, increase my country's oil and gas self-sufficiency rate, and ensure my country's energy security.