Henan Oil Company is hoping to drill the first oil well in the next half of this year, the report said.
Oil is considered as one of the strategic resources in China.
Oil has been under tight government control. Oil company officials met with Badai, the head of Bayinghulin Mongol Prefecture, and Tao Jianxin, the deputy secretary of the prefecture as well as high- ranking officials from Bugur County, the report said. Both sides expressed the desire to cooperate in oil exploration in the region, the report said. These oil companies under the pretext of language barrier don't hire local people in oil exploration and production.