In 2012, the Ministry of Land and Resources has gradually promoted the bidding and granting of shale gas prospecting rights.

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In 2012, the Ministry of Land and Resources’s bid for the prospecting of the shale gas prospecting rights is gradually advancing. On May 17th, the Ministry of Land and Resources issued the “Announcement on Investigation of Intentions for Shale Gas Prospecting and Mineral Right”, which announced the qualifications for bidding for the shale gas prospecting rights in 2012. Except that the registered capital of the bidding domestic companies must not be less than RMB 300 million, there is no Excessive other requirements, the threshold is greatly relaxed.

According to the announcement, the bidder’s qualifications include three conditions. First, domestic-funded enterprises registered in the territory of the People's Republic of China must have a registered capital of over RMB 300 million yuan, a good financial position and a sound financial accounting system, and an enterprise legal person or other economic organization that is solely responsible for civil liability. Second, the bidder should have the oil, natural gas or gas mineral exploration qualification, or have already established cooperative relations with the enterprises and institutions with the qualification for exploration. Third, the bidder should be an independent legal person and must not bid on the consortium.

It should be pointed out that since the shale gas was not a separate type of mineral before, bidders who want to enter will be unable to intervene due to qualification problems. This second round of tenders will give these companies "relaxation."

Specifically, the 300 million yuan capital threshold is insignificant for a company that is committed to shale gas development. However, the qualification threshold for exploration can also be used to inform the cooperation method to “do away”.

Experts from the Ministry of Land and Resources pointed out that for companies that want to participate in the exploration and development of shale gas, they can actually cooperate with companies that have qualifications for exploration, but they cannot participate in bids in the form of a consortium.

“China should open up the shale gas exploration and development market.” Zhang Dawei, deputy director of the Oil and Gas Resources Strategic Research Center of the Ministry of Land and Resources, suggested that many investment entities be encouraged to enter the field of shale gas exploration and development; anybody with strong financial strength, gas or oil Qualified enterprises can enter independently; enterprises with strong financial strength and no qualifications can form joint ventures with qualified units or enter into cooperation with them; and allow foreign enterprises to participate in shale gas exploration through joint ventures or cooperation in accordance with relevant national laws and regulations. Development and so on.

"Currently, in addition to the original oil and gas companies, all kinds of capital are interested in this. The qualifications for tendering are financial strength and development qualifications, and there is no restriction on the nature of the ownership of enterprises." Zhang Dawei said to reporters earlier, actively participate in the development of Companies and equipment companies will benefit from it.

He pointed out that “Although China’s shale gas industry is currently in its infancy, it is about to enter a stage of rapid development.” The Ministry of Land and Resources completed the evaluation of shale gas resource potential in China for the first time last year. According to preliminary statistics, the shale gas recovery volume in China is 25 Trillion cubic meters, geological resources amounted to 134 trillion cubic meters.

However, Zhang Dawei did not disclose when the shale gas tender will be conducted this year. Earlier media reports said that the Ministry of Land and Resources may hold a second round of tenders in July-August this year.

In June 2011, China initiated the first public bidding for shale gas prospecting rights. Six state-owned enterprises participated in bidding for exploration rights in the four blocks. among them. China Petroleum & Chemical Corporation and Henan Province Coalbed Methane Development and Utilization Co., Ltd. each won a block.

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