China National Petroleum Corporation

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China National Petroleum Corporation 中国石油天然气集团公司

Type	Government-owned corporation
Founded	September 17, 1988
Headquarters	Beijing, People's Republic of China
Area served	Global (27 countries)
Key people	Jiang Jiemin, President Wang Guoliang, CFO
Industry	Oil & Gas
Products	Oil (fuels, lubricants) Natural Gas Petrochemical Oil Exploration Services Oil Exploration Equipments
Revenue	▲ $110.552 billion USD (2006)[1]
Net income	▲ $13.256 billion USD (2006)[1]
Employees	1,086,966 (2006)[1]

The China National Petroleum Corporation (CNPC) (simplified Chinese: 中国石油天然气集团公司, traditional Chinese: 中國石油天然氣集團公司, Hanyu Pinyin: Zhongguo Shiyou Tianranqi Jituan Gongsi)^[2] is a state-owned fuel-producing corporation and the largest integrated oil and gas company in the People's Republic of China. As of 2006, it was the second largest company in the world in terms of number of employees.

Contents 1 Corporate structure 2 History 3 Operations 3.1 Iraq 3.2 Syria 3.3 Kazakhstan 3.4 Uzbekistan 3.5 Xinjiang Pipeline 4 Envrionmental record 5 See also 6 References 7 External links

[edit] Corporate structure

CNPC is the government-owned parent company of public-listed PetroChina, a company created on November 5, 1999 as part of the restructuring of CNPC. In the restructuring, CNPC injected into PetroChina most of the assets and liabilities of CNPC relating to its exploration and production, refining and marketing, chemicals and natural gas businesses.

CNPC and PetroChina develop overseas assets through a joint venture, CNPC Exploration & Development Company, which is 50% owned by PetroChina. The half ownership was acquired in June 2005 by PetroChina after paying CNPC 20.74 billion yuan.^[3]

[edit] History

CNPC can be traced from the beginning as a governmental department of the PRC government. In 1949, the Chinese government formed a Fuel Industry Ministry dedicated to the management of fuel. In January 1952 a sub department of the fuel ministry was formed to manage petroleum exploration and mining, it was called the Chief Petroleum Administration Bureau. In July 1955 a new ministry was created to replace the Fuel Industry Ministry, it was called the Ministry of Petroleum. From 1955 to 1969, approximately 4 oil fields were found in 4 areas in Qinghai, Heilongjiang (Daqing oilfield), Bohai Bay and Songliao basin. CNPC was finally created in 17 September 1988 when the government decided to disband the Ministry of Petroleum and created a state owned company to handle all Petroleum activities in China.

1993 marks the beginning of CNPC international operation. CNPC sign a service contract with the government of Peru to manage the Talara oilfield. It was followed by an oil contract with the government of Sudan to manage Block 1/2/4 in the Muglad oilfield. Then in June 1997 the company bought a 60.3% stake in the Aktobe Oil Company of Kazakhstan, the next month CNPC won an oil contract for the Intercampo oilfield and East Caracoles oilfield in Venezuela.

Further In July 1998, the company was restructurized by the government in accordance with the upstream and downstream principle of oil industry.^[4]

In August 2005 it was announced that CNPC agreed to buy the Alberta-headquartered PetroKazakhstan for US$4.18 billion. This would be the largest overseas acquisition by a Chinese company. The acquisition was successfully completed 26 October 2005 after a Canadian court turned down an attempt by LUKoil to block the sale.[1]

On 5 November 2007, CNPC was listed as A share in the Shanghai Stock Exchange.

[edit] Operations

CNPC holds proved reserves of 3.7 billion barrels of oil equivalent. In 2007, CNPC produced 54 billion cubic metres of natural gas.[2] CNPC spun off most of its domestic assets into a separate company, PetroChina, during a restructuring. CNPC has 30 international exploration and production projects with operations in Azerbaijan, Canada, Indonesia, Myanmar, Oman, Peru, Sudan, Thailand, Turkmenistan, and Venezuela.

[edit] Iraq

CNPC began development of an oil field in Wasit Governorate in March 2009, becoming the first significant foreign investors in Iraq.^[5] The project progressed despite security problems although CNPC encountered problems with local farmers. Dozens of farmers complain of damage to property because of work on the site and Iraqi oil officials claim thievery from the oil site by local farmers.^[5]

[edit] Syria

CNPC with Indian state oil firm, ONGC created a joint venture to acquire minority stakes ranging from about 33.3% to 38% in several mature Syrian oil and natural-gas properties. The combined entity was a notable instance of cooperation between two state oil firms that regularly competed for assets around the world.^[6]

[edit] Kazakhstan

CNPC is heavily involved in the development of Kazakh oil after the acquisition of Alberta-based PetroKazakhstan, a company with all operations in Kazakhstan. The company was purchased for $4.18 billion. Political resistance in Kazakhstan to the deal was placated by the sale of a minority stake in PetroKazakhstan by CNPC to KazMunaiGaz, the Kazakh state-owned oil company.

[edit] Uzbekistan

In 2006, CNPC formed an international consortium with state-run Uzbekneftegaz, LUKoil Overseas, Petronas, and Korea National Oil Corporation to explore and develop oil and gas fields in the Aral Sea.^[7]

[edit] Xinjiang Pipeline

In October 2004, CNPC began construction of a pipeline from the Middle East to Xinjiang.

[edit] Envrionmental record

In 2005, there were explosions at a CNPC owned petrochemical plant causing six deaths, a mass evacuation, and a massive oil spill over the Songhua River.

[edit] See also

• CNPC (HK)
• Petroleum industry in the People's Republic of China

[edit] References

[edit] External links

• CNPC official website
• CNPC Company Profile at Yahoo Finance