中华人民共和国对外合作开采海洋石油资源条例（修订） State Council, PRC Exploitation of Offshore Petroleum Resources in Coopera

vant laws and provisions on environmental protection and safety of the PRC, and shall, in the light of international practice, protect fishery resources and other natural resources and prevent the environment, including the ozone, seas, rivers, lakes and land, from being polluted or damaged, when conducting operations.

　　Article 23　The petroleum produced within the petroleum contract area shall be landed in the PRC or may be exported from oil (gas) metering points on offshore terminals. In case such petroleum has to be landed at point outside the PRC, the approval of the State Council must be obtained.

　　PART FOUR　SUPPLEMENTARY PROVISIONS

　　Article 24　Any dispute arising between foreign and Chinese enterprises during the cooperative exploitation of offshore petroleum resources shall be settled through friendly consultations. If it cannot be resolved through consultation, mediation and arbitration may be conducted by an arbitration body of the PRC, or the parties to the contract may agree upon arbitration by another arbitration body.

　　Article 25　In case an operator or subcontractor violates the provisions hereof in conducting petroleum operations, the department designated by the State Council shall order rectification within a period and issue a warning in accordance with its authority. If no correction is made prior to the specified deadline, the department may order the suspension of petroleum operations. All economic losses arising therefrom shall be borne by the party responsible.

　　Article 26　The terms used in these Regulations are defined as follows:

　　1. "Petroleum" means crude oil or natural gas deposited underground, currently being extracted or already extracted.

　　2. "Exploitation" means, in general, the exploration for and development, production and marketing of petroleum, as well as other related activities.

　　3. "Petroleum contract" means a contract signed, in accordance with the law, between CNOOC and foreign enterprises for the cooperative exploitation of offshore petroleum resources of the PRC, including the exploration for and develop

ment and production of petroleum.

　　4. "Contract area" means a surface area designated within a sea area demarcated by geographical coordinates in the petroleum contract for the cooperative exploitation of petroleum resources.

　　5. "Petroleum operations" means all exploration, development and production operations and other related activities conducted in carrying out the petroleum contract.

　　6. "Exploration operations" means all work done to locate the petroleum-bearing traps by means of geological, geophysical and geochemical methods and including drilling exploratory wells, etc., and all work done to determine the commerciality of discovered petroleum traps, including appraisal drilling, feasibility studies and preparation of the overall development plan for an oil (gas) field.

　　7. "Development operations" means projects, such as those for designing, construction, installation and drilling, and corresponding research work, conducted from the date of the approval of the overall development plan for an oil (gas) field by the department designated by the State Council, in order to bring about petroleum production, and including production activities carried out before the commencement of commercial production.

　　8. "Production operations" means all operations for producing petroleum conducted after the date of commencement of the commercial production of an oil (gas) field and related activities, such as extraction, injection, production stimulation, processing, storage and transportation and lifting of petroleum and other operations.

　　9. "Foreign contractor" means a foreign enterprise that signs a petroleum contract with CNOOC. The foreign enterprises may be a corporation or a consortium of corporations.

　　10. "Operator" means an entity that is responsible for implementing the operations pursuant to the provisions of the petroleum contract.

　　11. "Subcontractor" means an entity that renders services to the operator.

　　Article 27　These Regulations shall be effective as of the date of promulgation

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