2006

January

Jan. 18   CNPC signs an agreement on strategic cooperation with Beijing Public Transport Holdings, Limited. With this long-term strategic partnership, CNPC becomes the largest oil and gas supplier for the Group.

February

Feb. 06   CNPC and the Industrial and Commercial Bank of China (ICBC) jointly launch Peony-PetroChina Card, which can be used across the country. CNPC's over 8000 gas stations in China will also provide credit card payment services.

Feb. 28   The groundbreaking ceremony for an ethylene project is held in Chengdu, Sichuan Province. With a total investment of RMB 21 billion and an annual capacity of 800,000 metric tons, the project is a joint venture of CNPC and Chengdu Petrochemical Co. Ltd, with 51 and 49 percent ownership respectively.

Feb. 28   CNPC and Shougang Group sign an agreement on strategic cooperation. The two parties will intensify their cooperation in such areas as petrochemicals and establish a strategic partnership, ensuring that they become each other's reliable supplier and draw on each other's resources for future development.

March

Mar. 02   CNPC and Total sign a Natural Gas Development and Production Contract and a MOU of Natural Gas Sale and Purchase Agreement of South Sulige Block.

Mar. 21   CNPC signs a MOU on Supplying Natural Gas from Russia to China, an Agreement on the Basic Principles for the Establishment of Joint Ventures in China and Russia for Strengthened Oil Cooperation and a Minute on CNPC-Transneft Meeting with Gazprom, Rosneft and Transneft respectively.

April

Apr. 28   CNPC Services and Engineering Co., Ltd. (CNPCSE) and Shell sign a MOU on Wellbore-related Service between CNPC Services and Engineering Co. Ltd and Shell International Exploration and Production B.V. and a Cooperation Framework Agreement on Wellbore Technological Service.

May

May 31   The State Environmental Protection Administration of China grants the West-East Gas Pipeline project the title of National Environment Friendly Project, which is the highest level award for construction projects in China.

June

Jun. 28   CNPC Petrochemical Research Institute is established.

Jun. 30   The expansion project (Phase II) in Khartoum Refinery goes into production. The newly added facilities include a delayed coking unit with an annual capacity of 1.2 million metric tons, a continuous reforming unit with an annual capacity of 400,000 metric tons and a diesel oil hydro-refining unit with an annual capacity of 1.2 million metric tons. With this effort, the refinery reaches an annual refining capacity of 5 million metric tons.

July

Jul. 05   CNPC and KazMunaiGaz sign the stock transfer agreement, which enables KazMunaiGaz to acquire 33% equity of PK.

Jul. 06   CNPC and Reliance sign an agreement to jointly construct India's East-West Pipeline. Starting from Baroch in the east and ending at Pondicherry in the west, it will transport natural gas from the Bay of Bengal to cities in the western part of the country. The 1380km-long gas pipeline, invested as a major national project of India, is expected to be completed by December 31, 2007. China Petroleum Pipeline Bureau (CPPLB), one of CNPC's subsidiaries, has won six bidding sections out of eight, aggregating a length of 1,088 kilometers.

Jul. 12   Nine blocks for risk exploration in the Tarim Basin are open to international oil companies. With a total area of 110,000 square kilometers, these blocks are concentrated in the southwestern, central and eastern parts of the Tarim Basin.

Jul. 19   Through its wholly-owned subsidiary, CNPC International, CNPC has purchased 66.2252 million listed shares of Rosneft for 500 million US dollars at 7.55 US dollars per share.

Jul. 25   The 10Mt/a project at Block 3/7 in Sudan goes into production. In addition, a 1376km-long pipeline is also put into use, which provides a solution to the transportation of crude oil with high acid levels, high calcium content and high viscosity, and will secure long-distance and safe transportation of high pour point crude oil. CNPC has spent over two years completing the above two projects.

Jul. 26   CNPC and Tianjin Pipe Group Co. Ltd sign a strategic agreement for an increasing cooperation on information, technology and business affairs under the principle of equality, mutual trust, reciprocity and mutual benefit.

Jul. 29   The crude oil delivered through the Kazakhstan-China Oil Pipeline, arrives at the tank farm of Dushanzi Petrochemical via Alashankou-Dushanzi Oil Pipeline in China. China's first transnational oil pipeline is officially put into commercial operation.

August

Aug. 05   A new atmospheric and vacuum device with an annual capacity of 10 million metric tons is put into operation at Dalian Petrochemical. With a primary crude processing capacity of 20.5 million metric tons, the company will be China's largest refinery.

Aug. 16   CNPC and the Chinese Academy of Sciences (CAS) sign a technical cooperation agreement, under which they would establish a long-term cooperative relationship in innovative oil and gas exploration theories and methodologies, EOR, new catalysts and processes for refining, novel polymer materials, natural gas conversion technology, new energy, high-tech R&D and application. In addition, their respective laboratories will be open to each other; technological intelligence will be shared; academic exchanges will be made; and a postdoctoral research center will be built as a human capital reserve.

Aug. 16   CNPC and Baosteel Group Corporation sign a strategic cooperation framework agreement to strengthen their cooperation in the supply of natural gas, oil products, steel products and basic services concerning high-quality steel.

Aug. 18   Construction begins of refining and ethylene projects with a total of thirteen major units, including an 8 million-metric-ton atmospheric and vacuum device and an 800kt/a ethylene production unit, at Fushun Petrochemical.

Aug. 18   As a national basic research project jointly undertaken by CNPC and other parties, Scientific Research Well No.1 in Songliao Basin, well Song Ke-1, begins to be drilled for thorough research into major geological events in the Earth's surface system and greenhouse climate change in the Cretaceous Period. Through this process, important data would be collected for better prediction of future global climate change . In addition, this effort will also help unveil the geological structure of Cretaceous system and gain a better understanding of the oil and gas resources in the Songliao Basin.

Aug. 19   The groundbreaking ceremony for the Tarim Fertilizer Project is held. With a designed annual production capacity of 450,000 metric tons of synthetic ammonia and 800,000 metric tons of urea, the project will be one of China's largest fertilizer production facilities in terms of per-unit capacity. The Project, which is located in the city of Korla, Xinjiang Uygur Autonomous Region, will get an abundant gas supply from the Tarim Basin.

Aug. 23   Uzbek President Islam Karimov signs a Presidential Directive on CNPC's five onshore exploration blocks in Uzbekistan. It marks the first oil and gas exploration agreement going into effect, which was signed by CNPC and Uzbekneftegaz in Beijing on June 8, 2006.

Aug. 24   CNPC and the Venezuelan Ministry of Energy and Mines sign the Agreement between China National Petroleum Corporation and Petroleos de Venezuela S.A. for joint exploration of the Sumano Oilfield and a Framework Agreement on the joint venture between China National Petroleum Corporation and Petroleos de Venezuela S.A. for the joint exploration of the Orinoco Heavy Oil Belt's Junin-4 Block. At the fifth meeting of the China-Venezuela high-level mixed committee, CNPC and PVSA sign six cooperation agreements concerning oil engineering and technological services and oil trade, including the Agreement on Operation Contract to Joint Venture at Intercampo and Caracoles Oilfields, the Driller Procurement Contract between Petroleos de Venezuela S.A. and China Petroleum Technology and Development Corporation, a MOU between CNPC Services and Engineering Ltd. and Petroleos de Venezuela S.A. on the Establishment of a Well Engineering Service Joint Venture, and a MOU between China Petroleum Technology and Development Corporation and Petroleos de Venezuela S.A. on Joint Driller Production.

Aug. 30   The Aral Sea Oil and Gas Development Consortium of Investors, composed of CNPC, Uzbekneftegaz, Lukoil Overseas Holding, Petronas Carigali Overseas and Korea National Oil Corporation, signs the Production Sharing Agreement with the Government of the Republic of Uzbekistan for activities involving the exploration and development projects in the Uzbek section of the Aral Sea.

September

Sept. 15   CNPC and United Petroleum Natural Gas Investments Limited sign the contract on EOR for Gaosheng Block of the Bohai Bay Basin, PRC, under which the two companies will jointly develop oil and gas resources in the Gaosheng Block of the Bohai Bay Basin.

Sept. 25   The Western Products Pipeline, which is designed to transport 10 million metric tons of oil products per year, has completed its test operation.

Sept. 30   CNPC Drilling Research Institute is established in Beijing.

October

Oct. 16   CNPC and Rosneft sign an Agreement on the Establishment of Oriental Energy Company Ltd for oil and gas exploration bidding in Russia.

Oct. 26   Construction of the 457.5km-long Lanzhou-Yinchuan Pipeline begins, which has a designed deliverability of 3.5 billion cubic meters per year. The pipeline will link Se-Ning-Lan Gas Pipeline and the West-East Gas Pipeline, and further north, be connected to the Chang-Ning Gas Pipeline at Yinchuan.

November

Nov. 08   CNPC and Sichuan Provincial Government sign a framework agreement on cooperation in bioenergy development, under which sweet potatoes and Jatropha curcas are used to produce fuel ethanol and bio-diesel oil, and a bioenergy R&D base will be established in Sichuan.

Nov. 12   The first World Heavy Oil Conference, sponsored by CNPC and the Government of Alberta Province, Canada, is held in Beijing. This conference received strong support from the Chinese Government and an active response from heavy oil-rich countries and heavy oil consumers, related oil companies and technical service providers.

Nov. 18   CNPC starts to construct the 78km-long Daqing-Harbin Pipeline, which is designed with an annual gas deliverability of 5 billion cubic meters. This marks the launch of the gas pipeline network projects in northeastern China. The project will link all the major northeastern cities, including Daqing, Qiqihaer, Harbin, Changchun, Shenyang and Dalian, and will reach to Beijing when completed.

Nov. 20   The reconstruction and expansion of the 700kt/a ethylene project is put into operation at Lanzhou Petrochemical. Together with an annual refining capacity of 10 million metric tons, the company will become a large-scale refining base. With successful operation of the new facilities, the company will have an added production capacity of 460,000 metric tons of ethylene and 800,000 metric tons of synthetic resin per year.

Nov. 22   Projects with a gas productivity of 1.5 billion cubic meters and a gas field framework of 3 billion cubic meters have been networked and put into operation in Sulige Gasfield, supplying natural gas to Beijing, Tianjin and their surrounding areas. 

December

Dec. 03   Oil and gas equivalent production of Sichuan Oil and Gas Field reaches over 10 million metric tons, making it CNPC's sixth 10-million-ton grade field.

Dec. 11  Crude oil output in Changqing Oilfield reaches over 10 million metric tons, making it CNPC's seventh 10-million-ton grade oilfield.

Dec. 14   The main parts of ground facilities, with a gas productivity of 3 billion cubic meters per year, are completed and put into operation in Changbei Gasfield, supplying gas for the Second Shaan-Jing Pipeline.

Dec. 16   The Huaiyang-Wuhan Pipeline, which links the West-East Gas Pipeline and the Zhongxian-Wuhan Pipeline, is put into operation. As an important part of the efforts to connect CNPC's major gas pipelines, the 475km-long pipeline starts from Huaiyang city, Henan Province and ends at Wuhan, Hubei Province. It is designed with an annual gas deliverability of 1.5 billion cubic meters.

Dec. 18   US Petroleum Intelligence Weekly publishes the ranking of the world's largest 50 oil companies for 2005. CNPC has ranked among the top 10 for the sixth consecutive years, rising from 9th in 2004 to 7th in 2005, based on the six indices of oil and gas reserves, production, crude processing capacity, and sales of refined oil products, etc.

Dec. 18   BGP, one of CNPC's holding subsidiaries, launches its first 3D seismic exploration vessel, "BGP Pioneer", in Singapore. The ship is equipped with the most advanced geophysical prospecting and data acquirsition equipment in the world and is expected to operate in deep seas.

Dec. 30   CNPC lays the foundation of the 10 million-metric-ton refining project at Guangxi Petrochemical in Qinzhou, Guangxi Zhuang Autonomous Region. As CNPC's first giant refinery in southern China, it will have ten major production units including an atmospheric and vacuum device with an annual capacity of 10 million metric tons, and supporting facilities, such as docks and tank farms. Once the project is completed, the refinery will be able to supply 7.6 million metric tons of refined products to markets in southwestern China per year.