China's offshore oil industry: Role of international cooperation in development

China's sea areas have vast hydrocarbon resources, with proven reserves of 1.2 billion tons of oil and 180 billion cubic meters of gas. Development of the national petroleum industry in the early phase, since its inception in the 1960s, was very modest. In 1978 the oil and gas production grossed only 0.1 million tons. A new policy, open to international cooperation, paved the way in 1979 towards a joint venture with French corporations for seismic profiling. Following a decision in 1982 by China's State Council, cooperation in the offshore oil industry was extended to 45 corporations from 12 countries. Petroleum production increased rapidly and by 1997 reached 16.3 million tons of crude oil and 4 billion cubic meters of natural gas. In addition to the economic gains, China benefited from the international cooperation in developing the technical and managerial skills of its manpower and securing a favourable place in the world oil industry.