CNPC > CNPC Worldwide > Kazakhstan

CNPC in Kazakhstan

CNPC has been operating in Kazakhstan since 1997 and now has oil and gas assets and equity in the country, while also providing oilfield services.

  • Oil and Gas Operations
  • Oilfield Services & Engineering
  • Local Development
  • Major Events

In Kazakhstan, CNPC mainly operates five oilfield development projects (CNPC AktobeMunaiGas, North Buzachi, PK, KAM and ADM), two exploration projects, the Kazakhstan-China Crude Oil Pipeline, the Northwest Crude Pipeline, and the Second Phase of the Kazakhstan-China Gas Pipeline, etc.

CNPC AktobeMunaiGas

In June 1997, CNPC acquired a 60.3% stake in AktobeMunaiGas, and obtained the production license for the Zhanazhol, Kenkiyak Oversalt and Kenkiyak Subsalt oilfields and a contract for an exploration block. CNPC owns an 85.42% shareholding in AktobeMunaiGas.

In 2011, CNPC and KazMunaiGas concluded an in-principle cooperation agreement to jointly explore and develop Urikhtau Gas Field, which is a gas source to the Phase-II Kazakhstan-China Gas Pipeline. In 2013, the Mangystau project produced 6 million tons of crude by deploying finely controlled waterflooding and horizontal drilling. In 2014, the project produced a record 6.28 million tons of oil by tapping high-water-cut residual oil through enhanced study on reservoir geology, intensified drilling and stimulation measures of new wells, improved flood patterns, and finely controlled waterflood.

692f8dc3333e4f608aca4a890a3d0d31 Kenkiyak Subsalt Reservoir

The Kenkiyak Subsalt Oilfield, with 110 million metric tons of reserves, was discovered in 1971. Most of the reserves are around 4,500m deep, interbedded by 3,000m thick salt rock, geopressured hydrogen sulfide-containing gas and geopressured aquifer, making drilling very difficult and costly. Despite its discovery more than 20 years ago, it remained unproducible. After CNPC took over the oilfield it used technologies such as carbonate reservoir description, fracture identification and underbalanced drilling to overcome the technical challenges from sub-salt structural imaging and ultrathick salt rock drilling, and quickly raised its annual production capacity to 2 million metric tons, turning 28.64 million metric tons of unproducible reserves into producible quality reserves. In 2013, we used bilateral horizontal wells at Kenkijak Subsalt Oilfield to provide a new means for the efficient development of this kind of oilfield.

692f8dc3333e4f608aca4a890a3d0d31 Zhanazhol Oilfield

Development of the Zhanazhol Oilfield began in 1983. When we took over the oilfield in 1997, its annual output was only 2.35 million metric tons. Most of the wells were flowing wells, and had to be shut down after the lifting pressure was exhausted. With the adoption of gas-lift production technology, Zhanazhol's output was raised to 4.08 million metric tons in 2004. At the end of 2008, it had 314 gaslift wells with daily output of 6,325 metric tons. Zhanazhol is now one of the largest oilfields in the world to use gas-lift production technology.

In 2014, the capacity building project at Zhanazhol's A-South gas-in-gas-cap field was put into production with a production capacity of 2.2 billion cubic meters of natural gas per year. In addition, the Phase-II surface engineering project for processing and integrated utilization of natural gas of the oilfield was put into production as scheduled.

In 2015, Phase-III production of the Third Oil & Gas Processing Plant in Zhanazhol Oilfield was started.

692f8dc3333e4f608aca4a890a3d0d31 Hope Oilfield at the Precaspian Basin

In 2002, CNPC AktobeMunaiGas commenced risk exploration in the eastern Pre-Caspian Basin, covering an area of 2,933.9 square kilometers. The company applied such exploration technologies as fine horizon calibration, speed analysis, and palaeostructure recovery technology, overcoming many technical challenges and making impressive research and exploration achievements. The "Hope Oilfield" discovered in 2005 was the first major exploration breakthrough in the past decade in Aktobe, and a 100-million-ton oil-bearing structure was also discovered in North Troyes in 2006. By the end of 2008, 180 million metric tons of oil in place was proved at Umit Oilfield. 

In 2009, a number of exploration wells at the Precaspian central block resulted in new breakthroughs, further expanding the oil-bearing area of the Hope Oilfield, the joint oil/gas project in Aktobe. In 2011, the No. 4 Oil and Gas Processing Plant at the Hope Oilfield was completed. In 2012, CNPC-International Aktobe's exploration activities in the peripheral Hope Oilfield enlarged the oil-bearing area of the field, and PetroKazakhstan obtained commercial discoveries from a number of exploration wells.

In 2015, we had more outcomes from lithologic exploration on the western slope of Hope Oilfield. In 2016, high-yield oil and gas flows were obtained from exploration at Hope Oilfield.

PetroKazakhstan

CNPC acquired PetroKazakhstan in October 2005. According to an agreement with Kazakhstan's Ministry of Energy and Mineral Resources, CNPC transferred 33% of its shares in PetroKazakhstan to KazMunayGaz in July 2006, and retained the remaining 67% stake in the company.

PetroKazakhstan is an integrated international energy company with upstream and downstream operations covering oil and gas exploration, development, refining and marketing of refined products. It now has 11 oilfields and 5 exploration blocks. The upstream assets are located in the South Turgai Basin, and the downstream business line generally includes the refining and marketing of refined products and crude oil. PetroKazakhstan owns the Shymkent refinery, the largest in Kazakhstan, and a transportation and sales network consisting of sales companies and service stations in Cyprus and Kazakhstan.

Since taking over PetroKazakhstan, CNPC has made exploration breakthroughs and oil and gas discoveries in both mature and new fields. In December 2006, well Aryskum-27 was completed with good oil and gas shows being observed during the drilling, indicating favorable exploration prospects in deep zones in this region. By rebuilding the oil formations and controlling the total water cut, CNPC kept PetroKazakhstan's crude oil output above 10 million for two consecutive years. In 2008, PetroKazakhstan discovered massive reservoirs in carbonate buried hills, and obtained commercial oil and gas flows at Block Doshan in the west, as well as the little-explored Block Karaganda in the north.

In 2010, we made important breakthroughs in progressive exploration of two blocks and two mature oilfields in South Turgai Basin as part of PetroKazakhstan, with oil and gas discovered above the caprock of the region for the first time. These demonstrated new room for exploration to tap into unstructured reservoirs. In 2013, we made progress in the progressive exploration in the PetroKazakhstan project.

In 2015, we made progress in No. 1057 central uplift area and Block Doshan of the South Turgai Basin. In addition, Phase-I of PetroKazakhstan's refinery revamping project was pushed ahead with a 4kt/a sulfur production unit brought into operation, and construction of the modern renovation project (Phase I) at Shymkent Refinery proceeded smoothly.

In 2016, Shymkent Refinery saw steady progress in its renovation and upgrading project.

North Buzachi Oilfield

North Buzachi Oilfield is located in Mangghystaū, western Kazakhstan. In 2003, CNPC purchased 35% and 65% shares of Chevron Texaco North Buzachi Inc. (TNBI) from Nimir and Texaco respectively, and thereby owned a 100% stake in the North Buzachi Oilfield. CNPC and Russia's Lukoil currently have 50% holdings each in the North Buzachi Oilfield after the stock rights changed hands several times. The oilfield is jointly operated by the two companies.

In 2005, CNPC's horizontal sidetrack drilling and acidizing-based stimulation test in the North Buzachi Oilfield both obtained excellent results. Output from the horizontal sidetrack wells was as much as 14.4 times of the previous output, while the output from acidized wells was increased 3.6 times.

On July 10, 2009, the phase-II engineering of the North Buzachi central processing station started operations, which raised the oilfield's processing capacity to 2 million metric tons a year.

KAM Project

The KAM project mainly includes Konys and Bektas oilfields, which are located in the South Turgai Basin, covering an area of 431 square kilometers.

In November 2004, CNPC acquired 50% shares in Konys and Bektas oilfields (KAM Project). The company currently owns a 25% holding in the two oilfields respectively.

ADM Project

In January 2005, CNPC signed an agreement with Ay-Dan to buy shares for ADM and acquired a 100% stake in it. Ay-Dan has exploration licenses for the Aryss and Blinov blocks. The licensed exploration areas are 215.86 square kilometers and 59.697 square kilometers respectively.

In 2006, oil and gas flows were obtained from Cretaceous formations in appraisal well SPR5 in the northern lakeshore No.3 structure, with a daily output of 122 cubic meters. In 2007, commercial oil flows were discovered in South Aryss and Blinow, increasing the oil in place by 12 million metric tons. In 2008, we made several new discoveries in carbonate reservoirs in the lakeshore prospect area.

Jointly Operated Piplines

c2a257ae08a9489b93e0503016bb965b Kazakhstan-China Crude Oil Pipeline

c2a257ae08a9489b93e0503016bb965b Kazakhstan-China Gas Pipeline

c2a257ae08a9489b93e0503016bb965b Kenkiyak-Atyrau Pipeline

c2a257ae08a9489b93e0503016bb965b Zhanazhol-KC13 Gas Pipeline

CNPC provides oilfield services in Kazakhstan, including geophysical prospecting, well drilling, logging and testing.

In 2008, we entered the market in Aktobe, Aqtau, Atirau and Kezloerda, winning contracts for the CITIC well logging and SAGIZ well logging and perforation projects.

Drilling of Kenkiyak subsalt reservoir

Kazakhstan's Kenkiyak subsalt reservoir presents some of the most difficult drilling conditions in the world, including deep buried reservoir, high pressure and complicated formation section. Drilling in this area has had an extremely low success rate. However, drilling experts and technicians from CNPC successfully penetrated a 3,000 meter thick, gas-bearing halite formation by utilizing zwitter-ion polysulfante saturated saline drilling fluid to prevent the dissolution of halite strata, and adding anti-sloughing and anti-sticking agents to prevent reservoir destabilization and collapse. They achieved a 100% drilling success rate.

Kazakhstan-China Crude Pipeline

The Kazakhstan-China Crude Pipeline (Atasu-Alashankou), Kazakhstan's first pipeline directly connected to the market without passing through any third country, was completed in December 2005 and put into commercial operation in July 2006. The construction of the Atasu-Alashankou section has traveled through a marsh for 34 kilometers, a desert area for 150 kilometers and a bold windy area for 83 kilometers, and also crossed four rivers, nine highways and two railways.

Annual oil delivery via Kazakhstan-China Crude Pipeline has exceeded 10 million tons for five consecutive years since 2010, and by the end of 2014, the accumulative oil import was more than 75 million tons.

CNPC and KazMunayGaz signed an agreement on the construction and operation of the Phase II Kazakhstan-China Crude Pipeline in August 2007, and its construction was started in December 2007.

In December 2008, the main part of the Phase II Kazakhstan-China Crude Pipeline (Kenkiyak-Kumkol) was welded and became operational in October 2009.

The import volume of the Kazakhstan-China Crude Pipeline reached 10.07 million tons in 2016.

Central Asia-China Gas Pipeline

The Central Asia-China Gas Pipeline starts at Turkmen-Uzbek border city Gedaim and runs through central Uzbekistan and southern Kazakhstan before reaching Horgos in China's Xinjiang Uygur Autonomous region. Currently the Gas Pipeline has three lines in parallel, each running for 1,830 kilometers. Construction of Line A/B commenced in July 2008. With pipe diameter of 1,067mm, Line A became operational in December 2009, and Line B became operational in October, 2010. A delivery capacity of 30 billion cubic meters per annum was reached by the end of 2011.

Construction of Line C was started in September 2012. With a designed capacity of 25 billion cubic meters per annum, Line C’s pipe diameter is 1,219mm, 152mm larger than Line A/B. The overall welding work of the pipeline was completed at the end of 2013. On May 31, 2014, at the initial station of the Central Asia-China Gas Pipeline in Uzbekistan, the gas valve was turned on to boost natural gas from Turkmenistan to Line C, indicating the new transnational pipeline jointly built by CNPC and its Central Asian counterparts has become operational.

Upon completion of all supporting facilities of Line C by the end of 2015, the overall delivery capacity of the Central Asia-China Gas Pipeline will hit 55 billion cubic meters per annum. This equals to approximately 20% of China’s annual natural gas consumption, and would substitute 73 million tons of standard coal, cutting carbon dioxide and sulfur dioxide emissions by 78 million tons and 1.21 million tons every year, respectively.

In September 2013, China signed inter-governmental agreements with Uzbekistan, Tajikistan, and Kyrghyzstan respectively on Line D project. On March 4, 2014, CNPC's subsidiary Trans-Asia Gas Pipeline Company Limited signed an agreement with Tajiktransgaz on jointly establishing a natural gas pipeline company to manage the construction of Line D. On August 19, CNPC and Uzbekneftegaz signed an agreement on Line D of the Central Asia-China Gas Pipeline in Uzbekistan. Under the agreement, CNPC and Uzbekneftegaz will establish a JV company to construct and operate the Uzbekistan section of Line D. On September 13, construction of the Tajikistan section of Line D started. Totaling 1,000km with 840km outside China, Line D has a designed annual deliverability of 30 billion cubic meters, and is routed via Uzbekistan, Tajikistan and Kyrgyzstan to China. Upon the operation of Line D, the Central Asia-China Gas Pipeline will have an annual deliverability of 85 billion cubic meters, the largest gas transmission system in Central Asia.

By the end of 2014, the Central Asia-China Gas Pipeline had operated safely and steadily for five years, and transported 104.7 billion cubic meters of gas. Moreover, the pipeline is the winner of China's Golden Award for Construction Excellence.

In 2016, the No.4 and No.8 compressor stations along the Kazakhstan section of Line C of the Central Asia-China Gas Pipeline became operational.

The Second Phase of the Kazakhstan-China Gas Pipeline

The Kazakhstan-China Gas Pipeline, an important part of the Central Asia-China Gas Pipeline, will be built in two phases. The 1,300km-long Phase 1 is the section of the Central Asia-China Gas Pipeline through Kazakhstan, and was completed and put into service in December, 2009. The second phase starts from Beyneu of Mangystau Province in Kazakhstan, and will be connected to the Central Asia-China Gas Pipeline at Shymkent of South Kazakhstan Province. This 1,475km-long section is designed to transport 10 billion cubic meters of natural gas a year, and has a potential of up to 15 bcm/a, thus meeting the gas demand in southern Kazakhstan.

Construction of the second phase began on December 21, 2010. A 1,143km-long section from Bozoy of Aktobe Province to Shymkent has been put into operation in September 2013 with a capacity of 6 bcm/a. In 2014, the phase-I upgrading project of the diesel hydrogenation unit at Shymkent Refinery EPC contracted by CPECC was completed, and CPP won contract for the Stage-2 project of the Second Phase Kazakhstan-China Gas Pipeline. In 2015, the 306km-long Stage-2 of Phase-II Kazakhstan-China Gas Pipeline (Southern Kazakhstan Line) was completed and put into operation.

Additionally, CNPC has completed the construction of a range of major projects in the country.

blob:http%3A//10 A 44km-long pipeline for combined transportation of oil and gas from Zhanazhol oilfield to Kenkiyak was built in April 2005.

blob:http%3A//10 The first phase of the Third Zhanazhol Oil & Gas Processing Plant was completed and become operational in December 2007, became Kazakhstan's first project to achieve the 100% recovery of a large amount of associated gases.

blob:http%3A//10 PetroKazakhstan's Comprehensive Natural Gas Utilization Project (Phase I) became operational in April 2008, reducing the burnt-out quantity of associated gases from 97 million cubic meters in 2007 to 46 million cubic meters.

Environmental protection

CNPC gives priority to protecting ecological environment and improving the efficiency of natural resource utilization. Moreover, we have actively promoted the use of environmentally friendly technologies and taken various measures in order to minimize our environmental footprint. Our efforts include improving energy efficiency, resource recycling, ecological restoration, and emissions reduction.

All of CNPC's projects in Kazakhstan - whether for exploration or development, refining or petrochemicals, pipeline transportation or technical services are required to make an Environmental Impact Assessment (EIA) before, during and after construction, in order to avoid negative impact to local environment. At the same time, we are committed to saving water resources and reducing wastewater discharges. Liquid and solid wastes and domestic sewage are sorted and treated at separate treatment plants.

In response to the Kazakh government's prohibition on gas flaring, we have made efficient use of oilfield associated gas and achieved significant economic, environmental and social benefits. Our oil and gas processing capability has been enhanced, resulting in increase of output. The recovered associated gas is used for power generation to improve energy efficiency. The remaining associated gas is re-injected to the reservoirs to minimize environmental pollution.

During the construction of the Kazakhstan-China Oil Pipeline, we placed a high premium on the protection of soil, vegetation, and wild animals, as well as the restoration of landforms. Among our many efforts, we avoided building camps and limited construction area. We also tried, whenever possible, not to occupy farmland and other fertile areas. Action was immediately taken to remedy any damage caused. While digging pipe ditches, we were certain to return the topsoil to its correct place.

During construction, employees were forbidden from lighting fires in the vicinity of weeds and shrubbery in order to minimize the impact on wild animals' habitats. When digging the pipe ditch, we created a temporary passage for animals so that their natural movements to and from water sources would be unimpeded. And after completion of the project, we tried our best to restore the land to its original characteristics.

In 2009, PetroKazakhstan Inc., a holding company of CNPC, adhered strictly to the environment laws and rules of Kazakhstan and actively responded to the call of the local government for comprehensive utilization of natural gas. The company strengthened the development of projects involved in the comprehensive use of natural gas. The second phase of the PKKR project and the TP oil/gas processing plant has been completed and made operational. Over 90% of the company's natural gas is comprehensively utilized, taking the lead among companies in Kazakhstan. In October 2009, PK was granted the highest honor in environmental protection in the oil industry - Golden Prometheus - by the government of Kazakhstan in recognition of its efforts in the comprehensive utilization of natural gas and its achievements in environmental protection.

In 2010, we invested USD 350 million in three major natural gas utilization projects - the oil transfer station of Hope Oilfield, No. 4 Oil and Gas Processing Plant, and wet gas re-injection. The three projects were built and became operational within only eight months. CNPC-AktobeMunayGas was therefore granted the "Golden Award of Most Socially Responsible Enterprise" by Nursultan Abishevich Nazarbayev, President of Kazakhstan.

In our Southern Kazakhstan project, since April 2015, we have been maintaining a reasonable level of investment in sand stabilization along the pipeline. To beautify and protect the environment, we would carry out forestation after the construction of stations is completed.

Economic Development

CNPC promotes local economic development through supplying natural gas to local people and companies at a preferential price, as well as crude oil to Kazakh refineries and agricultural oil to farmers at a reduced price.

We also seek to stimulate the development of Kazakhstan's small-and medium-sized enterprises through the purchase of local goods and services. In 2006, CNPC AktobeMunaiGas purchased goods and services worth USD 719 million from Kazakh suppliers, which were mainly small-and medium-sized enterprises. During the construction of the first section of the Kazakhstan-China Oil Pipeline, our purchases from Kazakh companies, such as locally produced raw materials and mechanical equipment, were worth more than USD 17 million. The supply of concrete, sand, rocks, steel, and LNC used for welding was ll sub-contracted to local companies with a contract value of USD 19.3367 million. We also sub-contracted projects worth USD 18.6 million to local contractors, which directly and indirectly created 1,500 jobs.

Our sustained development in Kazakhstan has promoted the construction of local infrastructure. The Emba-Zhanazhol Railway, invested and constructed by CNPC, became operational in December 2006. With a designed freight capacity of 2.262 million metric tons per year and passenger capacity of 6,000 people per month, the 79.7 kilometers railway is free for our employees and can satisfy the needs for production and living. It has also made it easier for farmers along the line to reach new markets.

In 2007, CNPC donated USD 4 million and USD 1.8 million to Kyzylorda Province and South Kazakhstan Province respectively, funding the construction of railway, community park, school and library, and helping local residents to improve drinking water and power supply facilities.

In 2010, we provided support to five agricultural areas, and funded the repair and maintenance of community kindergartens in Mangystau Province.

In 2013, we invested more than RMB 40 million to support public facility construction and cultural and educational development in Kazakhstan. While maintaining good operating performance, the PK Project actively fulfilled its corporate social responsibility, and built good relations with the government, social groups and communities. In 2013, the project invested USD 6.8 mi l l ion in local inf restructure construction and cultural and sports activities. In honor of his outstanding social and economic contributions, Sun Xingyun, General Director of the MMG Project, was commended at the 8th KazEnergy Eurasian Forum.

In 2016, seven upstream projects in Kazakhstan produced 18.79 million tons of crude oil and 8.35 billion cubic meters of natural gas in 2016. Investment in public welfare undertakings reached USD 29.69 million. We were granted the national second-class "Order of Friendship" by Kazakh President Nursultan Nazarbayev for our outstanding socioeconomic contributions.

Training and Education

CNPC is committed to staff career planning, and to this end provides training and education opportunities to all employees. The education and training programs are well-thought out and based on the needs of career planning. We have long-term cooperative ties with reputable universities, colleges and specialized training agencies in Kazakhstan and foreign countries, providing training in technology, management, sales, HSE, quality supervision, business and foreign languages.

We have been holding a three-week management training for Kazakh managers at a training center of the China University of Petroleum (Beijing) for many years so that local managers can study business practices, and also organize visits to CNPC-affiliated oilfields in China for business exchanges.

CNPC AktobeMunaiGas supports the education of Kazakhs by setting up education funds, sponsoring academic meetings of higher education institutions, holding nationwide debates for college students, and sponsoring Kazakh students to study overseas. In 2000, the company allocated USD 1 million in education funds to support young Kazakh experts, outstanding students, and talented students from poor families. In 2008, we contributed USD 776,900 to support education in Kazakhstan. This included financing the study of 77 young Kazakhs at the China University of Petroleum (Beijing) and 35 students in Kazakhstan.

PK has also set up a special education fund to finance the education of excellent young Kazakhs. It has helped many middle school students from rural and mountainous areas to receive higher education at home and abroad. With the support of the Kyzylorda government, in 2005, PK established a scholarship to finance the college education of local outstanding students, and provide full scholarships to facilitate the sharpening of skills and talents that fally significantly short of the demands of the Kazakh oil industry. After acquisition, PK has provided higher education opportunities to 54 Kazakh middle school students.

In 2010, the CNPC's Kazakhstan project companies spent RMB 5 million in total to help outstanding local youth receive education in prestigious universities in China, Kazakhstan and other countries.

In 2011, the Kazakhstan branch of CNPC affiliated China Petroleum Engineering and Construction Corp. worked with the local universities to broaden the channel of executive search. Meanwhile, long-term training cooperation programs between the company and local universities and colleges such as Aktobe Institute of Technology and No.2 Shymkent Vocational School are under way to offer theoretical training to local employees. The training bases in Shymkent and Zhanazhol can provide simultaneous training to 25 welders, 30 pipeline workers and 30 riveters.

In 2012, the Company provided the Education Ministry of Kazakhstan with supporting 15 Kazakh students to take master's degree programs in China. We also invested RMB 25 million to support infrastructure, education and medical development in Aktobe.

Our Trans-Asia Gas Pipeline Company Limited has been covering the tuition and miscellaneous fees of young students, so far involving 10-15 students annually for three years, to support their education at the Kazakh-British Technical University. In 2014, another 14 students were selected to join this program.

We entered into an MOU with the Aktobe government to help build a Youth Palace in the city’s Presidential Park, with a capacity of 15,000 people.

Localization and Diversification

We provide work opportunities for local people from various nationalities, raising the percentage of local employees continuously. We also respect different customs and religious freedom, and follow Kazakh customs in food, marriages, funerals and festivals. During important national festivals and holidays, we organize grand get-togethers to celebrate with the local employees. Meanwhile, we have created various platforms to remove linguistic and cultural barriers between employees from China, Kazakhstan, Russia and the West.

In 2005, CNPC took over the operation and management of PetroKazakhstan Inc. More than 4,000 employees from more than 10 countries like Kazakhstan, US, Canada and China were grappling with their many differences in terms of language, culture, religion, customs, lifestyles and values. We have built a culture of mutual trust based on effective communication in PK. We also organize language training and encourage collective activities to facilitate employee communication. The training also provides insights into Chinese, Kazakh and Western traditional cultures, and this has greatly enhanced mutual understanding. We also organize outings on holidays, and hold banquets and parties to boost cultural exchang4es within the company.

BGP, a CNPC subsidiary, shows respect for local cultural and religious customs and has won the trust of the local employees. In 2011, the percentage of employees working with the company for three years or more is above 60% and even up to 80% in some regions. A questionnaire shows that it is the personal goal of 96% of foreign employees to become a "Star Employee" of BGP.

In 2013, we created a total of 35,000 job opportunities in local communities, with local people representing over 97% of our workforce there.

In 2016, we completed localization targets in Kazakhstan in the implementation of the Aktobe Project. When technical requirement permitted, we gave priority to Kazakh manufacturers, with whom we signed material supply contracts, and provided local manufacturers and service providers with reasonable prices.

Community building

Since 1997, CNPC AktobeMunaiGas has signed a socio-economic cooperation memorandums with the province of Aktobe to help beef up the rural infrastructure, develop agriculture, build public facilities and boost education, culture, sports, healthcare, and poverty relief. In 2008, CNPC AktobeMunaiGas honored its USD 6.38 million commitment in the Socio-Economic Cooperation Memorandums. From 2006 to 2008, PK signed Socio-Economic Cooperation Memorandums with the governments of Kzyl-Orda and South Kazakhstan and put USD 15 million in local infrastructure construction, urban heating, agricultural development, sports, culture, education, healthcare, and other public welfare projects.

In the past decade, CNPC has taken several initiatives to help disadvantaged groups. In May 2003, CNPC AktobeMunaiGas Built 80 homes for widowed seniors and veterans of World War II. The company also set aside USD 63,700 to subscribe to newspapers and magazines, and sponsors a Veteran Soldier Festival every year. To improve healthcare service, CNPC AktobeMunaiGas had donated a57 ambulances to Aktobe province by 2008. We also spent RMB 23.73 million on the construction and maintenance of infrastructure, hospitals, and cultural and religious venues in Aktobe and Astana in 2010.

CNPC also carries out public welfare projects in cooperation with non-governmental organizations. PK has been supporting the Foundation for Promoting Employment of the Socially Insecure Kazakh Citizens and Social Security. From 2006 to 2007, the company allocated USD 56.3 thousand to carry out projects aimed at socially vulnerable groups. In 2008, PK supported the foundation in its efforts to promote temporary and long-term employment, develop the urban infrastructure, and assess the condition of people not covered by social security.

In 2014, our MMG Project was granted the title of the "Most Respected Company" by the government of Mangystau Province.

In 2015, AktobeMunaiGas was granted "2015 Presidential Award for Corporate Responsibility". Additionally, on January 12, 2016, Mr. Alik Aidarbaev, Mangystau Oblast Governor of Kazakhstan, issued the certificate of honor to Mr. Sun Xingyun, President of the MMG Project, and expressed thanks to CNPC for its contribution to the local oil and gas industry and economic development. Mr. Sun Xingyun is the only oil and gas enterprise representative and foreigner receiving the honor this year. MMG managed to outperform in its oil and gas production against the low oil prices in 2015, and ranked the third largest oil and gas company in Kazakhstan, and the largest in Mangystau Oblast. While other local oil companies suffered from operating loss or large-scale layoffs, MMG still created more than 5,800 jobs for the local people, and realized profits of almost USD 300 million.

We provided RMB 1.684 million in 2016 through the North Buzachi Project to improve the dwelling conditions and living standards of local residents.

Support for Culture and Sport

Since 1997, CNPC AktobeMunaiGas has sponsored many social and cultural activities in Aktobe. For example, the company has sponsored the Aktobe soccer club, financed the local museum and monument, and backed academic meetings, art exhibitions and concerts. In 2006, the company invested USD 793,100 in building the monument and museum in honor of the Kazakh musician Zhubanov, and held a nationwide commemoration for him. CNPC AktobeMunaiGas also provides strong support to the development of both popular and professional sports, including weightlifting, swimming, hockey and free boxing. In recent years, the Aktau soccer club, which is sponsored by CNPC AktobeMunaiGas, has recorded a string of successes.

Since 2000, PK has been supporting a fund for young people, whose aim is to introduce economics to middle and primary school students and hone their social skills. It has benefited 37,000 middle and primary school students. Meanwhile, PK also joined hands with the provincial government of Kyzylorda to set up a Development Fund, for promoting local culture and sports. A local soccer team named Caesar, set up under this fund's support, even won a national championship. This money also helped renovate the central stadium of Kazakhstan and given the sport of weightlifting a leg up.

In 2011, the PK project team was granted the Presidential 2011 Gold Paryz Award for its outstanding contributions to employee welfare, social responsibility and environmental protection.

We provided USD 95.08 million for the establishment of the National Dance Academy of Kazakhstan.

blob:http%3A//10

Aug. 31, 2015 Main installations became operational at Phase-III project of the Third Gas Processing Plant of CNPC AktobeMunaiGas in Kazakhstan..

May 19-20, 2014 CNPC signed an agreement with KazMunayGas on the pipeline tariff of crude through the Kazakhstan-China Crude Oil Pipeline and tariff income distribution of each section owner, and a framework agreement on building a large diameter steel pipe plant in Kazakhstan.

Apr. 6, 2013 CNPC and KazMunayGas entered into an agreement on the principles regarding expansion of the Kazakhstan-China Crude Pipeline.

Jun. 6, 2012 A cooperation agreement was signed with Turkmengaz State Concern, to increase gas supply from Turkmenistan to China via the Central Asia-China Gas Pipeline.

Sept. 26, 2011 CNPC and KazMunaiGas signed an agreement on basic principles regarding the design, financing, construction and operation of Line C of Kazakhstan-China Gas Pipeline. It is expected to start gas delivery in early 2014.

Sept. 6, 2011 Phase-II of Kazakhstan-China Gas Pipeline was kicked off. The pipeline starts from Beyneu in Mangghystau and will meet the Central Asia-China Gas Pipeline at Shymkent in South Kazakhstan. The pipeline is designed with an annual capacity of 10 billion cubic meters, which can be expanded to 15 billion cubic meters.

Feb. 22, 2011 CNPC inked an agreement in principal with KazMunaiGas on the cooperation project at Urikhtau in Kazakhstan. According to the agreement, the two sides will establish a joint venture on equal equities to jointly develop the Urikhtau gas field.

Dec. 21, 2010 The second phase of the Kazakhstan-China Gas Pipeline started construction. In the first stage, a 1,164-kilometer gas pipeline from Bozoy in Aktobe to Shymkent in southern Kazakhstan with an annual capacity of 6 billion cubic meters will be constructed.

Jun. 12, 2010 CNPC signed an agreement on the principles of design, financing, construction and operation of the second phase of the Kazakhstan-China Natural Gas Pipeline with KazMunayGas. The two companies will cooperate to construct the second phase of the pipeline to meet natural gas demand in southern Kazakhstan.

Dec. 14, 2009 Central Asia-China Gas Pipeline became operational.

Dec. 12, 2009 1300km-long Kazakhstan-China Gas Pipeline was completed.

Oct. 14, 2009 CNPC and KazMunayGas sign framework agreements on construction of the second stage of the second phase of the Kazakhstan-China Oil Pipeline and on joint development of the Urikhtau gas field.

Oct. 9, 2009 The first stage of Phase II of the Kazakhstan-China Crude Pipeline (Kenkiyak-Kumkol) begins to commercially transport oil.

Apr. 16, 2009 CNPC and KazMunayGas sign a framework agreement on promoting oil and gas cooperation and USD 5 billion in financial support. The two companies reach an agreement with Central Asia Petroleum Ltd. to jointly purchase MangistauMunaiGas.

Dec. 23, 2008 CNPCI PetroKazakhstan ("PK") is granted the silver "Best Socially Responsible Enterprise" award from the Kazakh Government in recognition of its favorable remuneration and welfare, stable job opportunities, professional training and on-the-job training for its employees, and its outstanding achievements in safe operation and environmental protection.

Oct. 31, 2008 A framework agreement is signed with KazMunayGas on expanding cooperation in the natural gas and gas pipeline sectors. According to the agreement, the two sides will jointly develop the Urikhtau gas condensate field and implement the Phase II project of the Kazakhstan-China Gas Pipeline.

July 9, 2008 Construction of the1300-kilometer Kazakh-Chinese section of the Central Asia-China Gas Pipeline commences in Almaty, Kazakhstan. AGP, a natural gas pipeline joint venture between CNPC and KazMunayGas, will be in charge of the construction and operation of the Central Asia-China Gas Pipeline on Kazakh territory.

April 16, 2008 PetroKazakhstan's Comprehensive Natural Gas Utilization Project (Phase I) becomes operational, reducing the burnt-out quantity of associated gases from 97 million cubic meters (2007) to 46 million cubic meters.

Dec. 11, 2007 Construction of the second section of Kazakhstan-China Crude Pipeline commenced.

Jul. 05, 2006 CNPC and KazMunayGaz signed the stock transer agreement, which enabled KazMunayGaz to acquire 33% equity of PK.

Dec. 15, 2005 The first section (Atasu-Alshankou) of the Kazakhstan-China Crude Pipeline was completed and became operational.

Oct. 27, 2005 CNPC bought 100% of the stock of PetroKazakhstan.

Oct. 05, 2005 The natural gas pipeline linking Zhanazhol Oilfield in Aktobe, Kazakhstan, with the KC13 processing plant is completed.

May 19, 2004 CNPC and Kazakhstan's state-owned KazMunayGaz (KMG) signed the Agreement on Basic Principles for the Construction of a Crude Oil Pipeline from Atasu in Kazakhstan to Alashankou in China.

Oct. 14, 2003 CNPC purchased 100% shares in Texaco-North Buzachi.

May 2003 CNPC bought 25.12% stake of AktobeMunaiGas, increasing its shareholding in AktobeMunaiGas to 85.42%.

Jun. 1997 CNPC acquired a 60.3% stake in AktobeMunaiGas.