China National Petroleum Corporation (CNPC) has been granted approval to explore coal-bed methane with overseas partners, Yu Baocai, vice president of CNPC, said in Beijing Sunday.

According to Zhang Weidong, vice president of Hong Kong-invested China Age Energy Investment Corporation, the two companies have cooperated on oil exploration and development near Kashgar, and will work together on coal-bed methane exploration.

Zhang said CNPC has reached an agreement with Arrow Energy, an Australian energy company, to explore coal-bed methane in the Xinjiang Uygur Autonomous Region.

Until now only China United Coal-bed Methane Corporation had been authorized to partner with overseas companies on coal-bed methane.