Oil and Gas Exploration 

Our heavy investment  in oil and gas exploration has resulted in several major discoveries containing hundreds of millions of tons of reserves in the Bohai Bay and the Songliao, Ordos, Sichuan, Tarim, Junggar and Hailaer basins in China. In 2007, domestic newly added reserves of 830 million metric tons of oil and 445.4 billion cubic meters of gas were proved. And the overseas oil and gas investments were extended to 26 countries, a total of 52.41 million metric tons of overseas recoverable reserves were newly added.

Domestic oil and gas exploration witnessed the following breakthroughs and progress in 2007:

  Nanpu Oilfield was discovered in Jidong tidal and shallow water area in the Bohai Bay Basin, adding 450 million metric tons of proven oil in place and increasing 3P reserves to 1.18 billion metric tons of oil equivalent.

  A significant discovery was made in Well Qishen-1, one of our major risk exploration wells in Binhai region at Qikou Sag in the Bohai Bay Basin.

  In eastern Sulige of the Ordos Basin, 565.2 billion cubic meters of proved gas in place were newly added to the gas field.

  New progress was made in oil and gas exploration in the Jiyuan, Shenmu-Shuangshan, Suide-Mizhi and Baibao regions of the Ordos Basin. More than 200 million metric tons of additional probable and possible oil in place was found in the Baibao region.

  Considerable progress was made in oil and gas exploration in Longgang region of the Sichuan Basin. Strategic oil and gas shows were discovered as a result of the preliminary exploration of the region's Moxi structure.

  More than 236 million metric tons of possible oil in place was discovered and identified in the Hailaer Basin.

  A breakthrough was made in gas exploration in Ludong-Wucaiwan region of the Junggar Basin.

  A significant discovery was made in oil and gas exploration in Kuche Sag of the Tarim Basin. A high-yield gas flow was obtained from a depth of more than 7,000 meters in well Dabei-3 located in the sag.

Oil and Gas Production

Our domestic crude production in 2007 reached 107.65 million metric tons, which was a new high, and our natural gas production was 54.2 billion cubic meters, displaying sustained and rapid growth. The natural gas production continued to grow rapidly. Tarim oilfields produced 15.41 billion cubic meters, becoming the largest gas production region in China. Kela-2 Gas Field, one of the major sources of the West-East Gas Pipeline, produced more than 10 billion cubic meters.

The overseas development operation produced 64.45 million metric tons of oil and gas equivalent, an increase of 8.9% from 2006. The total production included 60.19 million metric tons of crude oil, of which CNPC's share was 29.98 million metric tons, and 5.36 billion cubic meters of natural gas, of which CNPC's share was 3.51 billion cubic meters.

Joint Exploration and Development

In 2007, CNPC expanded it cooperation with foreign companies. We worked with them on a larger scale in terms of risk exploration, complex oil and gas field development, and offshore exploration and development, and more closely in CBM and other unconventional oil and gas resources.

In 2007, our 21 ongoing joint exploration and development projects, including five in the development-construction stage and seven in the production stage, produced 4.98 million metric tons of oil and gas equivalent, an increase of 12.5% compared with the previous year. These included 3.78 million metric tons of oil and 1.5 billion cubic meters of natural gas.