Foreign Investment

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BIZCHINA / Energy & Mining

Foreign Investment

Updated: 2006-04-21 14:07

Introduction to Foreign Investment in the Mining Industry

According to office statistics, China's mining industry attracted foreign

investments in 162 projects, accounting for 0.72 percent of the nation's

total in 2000. The contractual value was US$506.4 million, accounting for

0.81 percent of the nation's total. The mining industry saw a 24.26- and

57.16-percent increase respectively in these two aspects compared to

1999. Actual utilized foreign investment in the industry totaled US$583

million, accounting for 1.43 percent of the nation's total. The average

investment in the project amounted to US$3.126 million, 26 percent higher

than in 1999.

In 2001, China's mining industry attracted foreign investments in 149

projects, 8.02 percent lower than in the previous year. The contract

value was US$644.48 million, an increase of 27.27 percent over 2000. The

average investment in the project was US$4.325 million, 34.3 percent more

than in 2000.

In 2002, China's mining industry attracted foreign investments in 164

projects, up 10.07 percent over the previous year. The contract value was

US$380.88 million, a drop of 40.9 percent over the previous year. The

average investment in the project was US$2.322 million, 46.4 percent less

than in 2001.

Introduction to Foreign Investment in China's Oil & Gas Exploration and

Extraction Industry

Since the 1980s, China has been using foreign capital, advanced

technology and management through various flexible cooperation projects

or joint ventures to speed up the country's oil and gas prospects and

raise its extraction standards. Since the 1990s, the country has gone

abroad to undertake foreign exploration and extraction projects to

increase its global market shares.

Official statistics show China's oil industry has so far attracted

foreign investments worth US$7 billion. During the period of 1982-2000,

the China National Offshore Oil Corp signed 140 contracts worth US$6.45

billion with 70 oil enterprises in 18 countries to jointly launch

prospecting operations in the country's offshore regions. Some 19 oil and

gas fields and 62 sites with oil/gas structures were discovered. A total

of 870 million metric tons of geological oil reserves and 130.2 billion

cubic meters of geological gas reserves were found.

By the end of 1999, 52 contracts had been signed covering 167 onshore

zones open to foreign companies. Total foreign investments reached US$1.1

billion. The opening-up policy greatly enhanced the country's extraction

technology for complex oil and gas resources, such as extraction

technology for deep gas, thick, low-permeable and rift oil reserves at

Daqing, Shenli, Liaohe and Zhongyuan oil fields. The overall recoverable

ratio also improved. The successful joint operations at the Dagang and

Sichuan Basin further enhanced the country's shaft-prospecting

technologies.

During the Ninth Five-Year Plan period, seven product-sharing coal-gas

contracts were signed with a total foreign investment nearing US$100

million. As a result, the country's appraisal technology for coal gas was

improved and prospecting operations were hastened.

According to official statistics, China scored three foreign projects in

the oil and gas industry with a total contractual value of US$255,87

million in 2000, an increase of 50 percent over the previous year.

In 2001, the number of foreign projects increased to eight -- an increase

of 166.67 percent over the previous year. The total contractual value

stood at US$43,9 million -- a decrease of 82.84 percent from the previous

year. The country also had eight foreign projects in 2002 with a total

contractual value of US$69,71 million -- an increase of 58.79 percent

over the previous year.

(For more biz stories, please visit Industry Updates)