China’s Ministry of Natural Resources has launched a groundbreaking auction allowing private and foreign companies to bid for offshore oil and gas exploration rights. This is the first time these conventional hydrocarbon resources have been made available outside the control of state-owned giants like PetroChina, Sinopec, and CNOOC.

The key offshore block being offered is Wushi 03, located in the Beibu Gulf of the South China Sea, covering an area of 580,000 square kilometers. Alongside this, six other blocks totaling 6,300 square kilometers in the Gansu and Liaoning provinces are also open for competitive bidding.

To participate, bidders must show they have net assets worth at least 300 million yuan (approximately $42 million). For the Wushi 03 block specifically, bidders need to prove involvement in at least one offshore oil or gas project in the past decade.

This initiative represents a major reform in China’s energy sector, breaking the long-standing monopoly of state-owned companies and encouraging more private and foreign investment in oil and gas exploration.