Fifteen non-state-owned Chinese companies will be granted crude oil import licenses this year, according to an official with the Ministry of Commerce.

The action is in line with China's promise to open its oil market after its accession to the World Trade Organization, Wu Guohua, deputy chief of the ministry's policy research office, was quoted as saying by Wednesday's Shanghai Securities News.

Wu declined to give the names of the 15 oil companies.

Currently, only five large state-owned firms have crude oil import licenses, said Wu. They are China National Petroleum Corp., China Petroleum and Chemical Corp., China National Offshore Oil Corp., Sinochem Corp., and Zhuhai Zhen Rong Company.

Wu said crude oil importers must meet strict standards including total oil storage capacity of at least 200,000 cubic meters and must sign long-term contracts with big oil refiners.

Analysts said the issuance of crude import licenses to non-state-owned firms will help the country speed up its buildup of strategic oil reserves.

The Eleventh Five-Year Plan for Energy Development (2006-2010) released on April 10 by the National Development and Reform Commission, the top economic planner, calls on companies to develop commercial oil reserves amid efforts to offset surging oil prices and prepare for possible supply cuts.

Source: Xinhua