Abstract: According to the requirements of deepening the reform of oil and gas system, a more stringent exploration rights withdrawal mechanism has been implemented in China since May 2020, which changed from a reduction/withdrawal according to the proportion of insufficient investment to a compulsory withdrawal/reduction upon expiration of exploration rights. In order to adapt to the new policy, PetroChina timely adjusted its management philosophy and actively introduced new measures to achieve the renewal and orderly reduction of the first-round exploration rights upon expiration. Based on the practice of orderly reduction/withdrawal of exploration rights in more than three years, the main management measures of PetroChina, the thoughts on the optimization design of the national exploration rights reduction/withdrawal system, and the design thoughts of the evaluation system supporting the decision-making of exploration rights reduction/withdrawal management are mainly discussed. In terms of the management of the exploration rights area withdrawal/reduction, two main measures are proposed: (1) Implement multi-business linkage and integration mechanism to accelerate the pace of pursuing exploration and discovery before the expiration of exploration rights; (2) Strengthen the organization, management and review of the preparation of reduction/withdrawal plans to fully ensure a solid foundation of high-quality resources for the exploration and development. In addition, the direction for further optimization of the national exploration rights withdrawal/reduction system is analyzed and two suggestions are proposed as follows: (1) Further increase the targeted incentives for exploration rights blocks obtaining new discoveries, and significantly reduce or even exempt the area reduction in these blocks; (2) Under the specified circumstances, provide certain institutional preferential policies to market entities undertaking the duty of national energy supply guarantee. In view of the exploration rights evaluation system, it is innovatively proposed that the design of evaluation system of exploration rights blocks should start from five aspects of recoverability, resource conditions, hydrocarbon accumulation conditions, economy, and other conditions to comprehensively and finely understand the value of exploration rights blocks, so as to support the subsequent decision-making of exploration rights reduction/withdrawal management of enterprises and provide certain reference for the government to analyze and determine the value of exploration rights blocks.