BEIJING — China will fully open up its market for oil and gas exploration and production to private and foreign companies, the Ministry of Natural Resources said on Jan 9.

Both domestic and foreign companies registered in China with net assets of no less than 300 million yuan (about $42.86 million) will be eligible to obtain oil and gas mining rights, Ling Yueming, vice-minister of natural resources said at a news conference.

The new policy will take effect from May 1.

The country's oil and gas market has been dominated by State-owned companies. Foreign companies could only enter the market by working with Chinese firms in the past.

The opening-up of the market will break up the state monopolies, further stimulate market vitality and help ensure domestic energy supplies, Ling said.