PetroChina 2011 Annual Financial Report Announced

(Beijing, March 29, 2012) - China National Petroleum Corporation (hereinafter referred to as "China Petroleum") announced today that in 2011, the company actively responded to the complex and ever-changing macroeconomic situation, scientifically organized production and operations, and strengthened cost control. We have comprehensively promoted refined management and actively changed the mode of development, showing a trend of rapid growth, steady improvement in value, steady and orderly production, and continuous improvement of the structure. The company's resource base has been steadily expanded, and its sustainable development capability has been further enhanced.

As of December 31, 2011, according to the International Financial Reporting Standards and the Chinese Accounting Standards for Business Enterprises, both achieved a turnover of 2,080.843 billion yuan (***, the same below), an increase of 36.7% year-on-year; subject to the macro regulation of domestic refined oil prices As a result of the impact of imported natural gas import and sales price inversion and large increase in taxes and fees, the net profit attributable to shareholders of the company was RMB 132.961 billion, a year-on-year decrease of 5.0%, and the basic profit per share was RMB 0.73. This was a year-on-year decrease of 0.03 yuan. According to the Chinese Accounting Standards for Business Enterprises, the net profit attributable to shareholders of the company was 133.984 billion yuan, a year-on-year decrease of 4.9%, and basic earnings per share was 0.73 yuan, a year-on-year decrease of 0.03 yuan.

According to the resolution of the board of directors, the company will distribute a final dividend of 45% of the final 2011 international standard net profit, and the dividend per share is 0.16462 yuan (including applicable taxes). Together with the 2011 interim dividend of RMB 0.16229 (including applicable taxes) that has been distributed, the company's dividend per share in 2011 was 0.32691 yuan (including applicable taxes). The company will make unremitting efforts to bring better returns to shareholders.

Exploration and production companies continued to implement the peak of reserves growth projects, and obtained a number of important discoveries and major breakthroughs in major exploration areas in China. The Qidamu Yingdong Structure added 100 million tons to control petroleum reserves, laying the foundation for finding quality reserves on the basis of the southwestern region of the province; Ordos gas exploration adds new geological reserves to the west and south of Jingbian, expanding the exploration of the Lower Paleozoic Fields: Eighty billion tons of Erdos Jilu, North Tarim Towers, and Sichuan Xujiahe, four grades of Qaidam-Northern Qaidam-stepped belt, Damotun Buried Hill of Bohai Bay, southern Songliao Basin, etc. Tonnage bulk storage blocks.

The company continued to carry out basic year activities of oilfield development and special water injection management. The main development indicators continued to improve, and the comprehensive water content increase was effectively controlled. At the same time, efforts were made to increase the capacity of the new area and optimize the development of technical routes. The output of new wells per well increased year-on-year. Daqing Oilfield overcame the influence of unfavorable factors such as development difficulties, speeded up the transformation of development methods, optimized oilfield development and deployment, and achieved continuous production of 40 million tons of crude oil in the 9th consecutive year after achieving continuous production of 50 million tons of crude oil for 27 consecutive years; Changqing Oilfield meticulously organized production and operation, and focused on improving the level of development. The annual oil and gas equivalent production reached 40.6 million tons, and oil and gas production achieved a historic leap.

In 2011, according to the assessment of independent reserves appraisers, the annual replacement ratio of oil and gas equivalent reserves was 1.03; the company’s domestic and international crude oil production reached 886.1 million barrels, an increase of 3.3% year-on-year; and saleable natural gas output was 2,396.4 billion cubic feet. The year-on-year increase of 7.9%; oil and gas equivalent production 1,285.6 million barrels, an increase of 4.7%.

In 2011, the exploration and production segment seized the favorable opportunity of high crude oil prices, actively changed the development mode, continued to strengthen cost and cost control, further enhanced profitability, and achieved an operating profit of RMB219.539 billion, a year-on-year increase of 42.8%.

Refining and chemical companies adhered to the market-oriented adjustment of product structure, overall optimized allocation of resources, strengthened production operation management, and promoted refined management by benchmarking management. The main technical and economic indicators continued to improve, and light oil yield and ethylene yield remained domestic Leading. The chemical sales business will focus on market demand, increase production of marketable products, and strive to reduce costs and increase efficiency. In 2011, the company processed 984.6 million barrels of crude oil, the crude oil processing load rate reached 92.0%, and the production of gasoline, kerosene and diesel fuel was 87.15 million tons.

The strategic restructuring of refining and chemical distribution has been steadily progressing. Liaoyang Petrochemical Refinery Expansion Project, Ningxia Petrochemical Refinery Expansion Project, Karamay Petrochemical, and Jinzhou Petrochemical Oil Quality Upgrade Project were completed and put into operation. Fushun Petrochemical's 10 million-ton refinery project was completed. The preliminary work of Guangdong Petrochemical and Yunnan Petrochemical made some progress.

In 2011, affected by the high international crude oil price, the domestic macro-control of refined oil prices and the declining demand from the chemical market, the operating losses of the oil refining and chemical industry segment totaled 61.866 billion yuan, of which the operating loss of the oil refining business was 6.0087 billion yuan and the operating loss of the chemical business was 1.779 billion yuan. .

The sales company accurately grasped the market trend, scientifically formulated marketing strategies, effectively organized resource allocation and transportation, actively optimized the sales structure, worked hard to increase the retail ratio, further improved sales quality, and enhanced profitability. The domestic retail market share reached 39.2%, an increase of 0.8 over the same period of the previous year. Percentage points, market share steadily increased. We continued to increase our marketing network development efforts and steadily promoted the construction of high-efficiency markets and strategic markets such as city gas stations and highway gas stations. In the year, there were more than 1,300 newly-built gas stations and the total number of gas stations reached 19,362. Emphasis on strengthening the quality of oil products, measurement management, 37 sales companies through the ISO9000 system certification. In 2011, the company sold 146 million tons of gasoline, kerosene and diesel, an increase of 20.4% year-on-year.

In 2011, the sales business segment keenly grasped market opportunities, scientifically organized marketing, expanded sales scale, improved sales quality, and realized operating profit of 20.653 billion yuan, a year-on-year increase of 29.4%.

The construction of natural gas and pipeline companies’ oil and gas strategic channels, domestic backbone pipeline networks and storage facilities has been accelerated. The second-phase West-East Gas Pipeline project was completed and put into operation, and natural gas resources from Central Asian countries such as Turkmenistan and Kazakhstan were introduced and connected with a number of established pipelines to form a natural gas pipeline network in China to ensure energy supply and optimize energy structure. It is of great significance to promote energy conservation, emission reduction and green development. LNG in Jiangsu and Dalian began to supply gas to the West-East Gas Pipeline Network and Northeast China, effectively promoting regional energy structure adjustment and diversification of natural gas sources.

Efficiently balance domestic resources of self-produced gas and imported gas, strengthen connection between production, transportation and sales, optimize the operation of pipelines and resources, expand the supply of natural gas to Jiangxi and Guangdong provinces, effectively promote the utilization of natural gas, and maintain natural gas sales volume to two The number is growing rapidly.

In 2011, the natural gas and pipeline segment realized an operating profit of 15.53 billion yuan. Affected by the increase in imported natural gas losses and depreciation due to the increase in investment in key projects, operating profit decreased by 23.9% year-on-year, including sales of imported natural gas and LNG accumulated losses. 21.4 billion yuan.

The overseas oil and gas cooperation of international business companies continued to expand, and the strategic layout of the five major oil and gas cooperation zones was basically completed. The cooperation field gradually expanded towards oil and gas, integrated upstream and downstream, and unconventional oil and gas projects, and entered a new stage of effective scale development. The Rumaila project in Iraq with BP has entered the investment and cost recovery phase and extracted crude oil, with an average daily output of 1.19 million barrels. The Hafaja project has progressed smoothly, and earthquakes, drilling, and ground production capacity have been fully carried out. Australia's Arrow project is proceeding in an orderly manner. In September 2011, it signed an agreement to acquire Bow Energy Limited, a company engaged in CBM exploration and development. In 2011, the company's overseas oil and gas equivalent production was 120.8 million barrels, an increase of 18.2% over the same period of the previous year, and the overseas oil and gas business contributed significantly to the company's contribution.

International trade revolves around the three major oil and gas operations centers in Asia, Europe, and the Americas to conduct a global trade network layout, continuously enrich the trading methods, steadily promote the construction of storage facilities, and further improve the international operation level. The Asian oil and gas operations center has gradually improved, and the four functions of trade, processing, warehousing and transportation have been fully utilized. Singapore Petroleum Corporation (SPC) and Osaka International Refining Company of Japan have performed well. Completion of the transactions with the Ineos Group to establish a trading and oil refining joint venture led to substantial progress in the construction of a European oil and gas operations center. In 2011, the volume of international trade completed was 147 million tons, and the economies of scale in the trading business of crude oil, natural gas and refined oil increased significantly.

In 2011, the overseas business (Note) achieved remarkable results, further contributed to the company's contribution, achieved a turnover of 574,212 million yuan, accounting for 28.6% of the company's total turnover; realized profit before tax of 34,747 million yuan, accounting for 18.9% of the company's pre-tax profit .

2012 Business Outlook In 2012, in the face of new challenges and opportunities, the company will continue to implement three strategies of resources, markets, and internationalization, focus on the development of its core business, maintain a steady and rapid growth of production and operations, and accelerate the transformation of development methods. Focus on improving the quality and efficiency of development, pay more attention to technology and management innovation, pay more attention to strengthening safety and environmental protection, achieve the business development goals defined by the board of directors, continuously improve growth, enhance international competitiveness, and strive to achieve sustainable development.