Q：The Huabei Oilfield is an old oilfield. How can its reserve production rate be enhanced? (16th Feb., 2012)
A：As an oilfield enters the mid-to-late stage of recovery, stable production becomes increasingly difficult. The Huabei Oilfield has adopted various measures and carried out scientific and more sophisticated development. By studying the latest geological and geophysical data, we re-evaluate key factors such as structure, reservoir and reservoir distribution, etc., so as to carry out essential appraisal drilling to confirm the scale of the reserve. When it comes to the relatively concentrated reserves, we select the more promising ones and set annual targets for evaluation and workload in accordance with the overall deployment plan. With those up to identified and separated reserves, we group them with old production areas based on the locations of the oil wells and develop them on a rolling basis. Thus, we conduct integrated evaluations rather than individual evaluations and provide clues for rolling evaluations. Apart from conducting solid re-evaluations of the oilfields, Huabei Oilfield also aims to achieve technological breakthroughs and optimize its approaches to development. We conduct research on feasibility and intensive application of multi-layer multi-stage fracturing technology, horizontal well drilling technology and multi-purpose layer incline drilling technology in some of the blocks that allow such conditions so as to adopt more aggressive measures for extraction. As for blocks with confirmed reserves, we carry out several exploration methods such as the advanced water injection development method, the horizontal wells plus vertical wells method, acidizing and fracturing so as to improve the Huabei Oilfield's reserves recovery rate. (17th Feb., 2012)
Q：Can you briefly describe the Company's coal gasification business? As the cost of producing coal gas is relatively high, why is the Company developing it? (8th Feb. 2012)
A：We do not have plans to invest in coal gasification projects in the near term. We have already established a natural gas pipeline network in Xinjiang, a coal gas producing area, and will build more natural gas pipelines in the future. We are negotiating with parties in the coal gasification industry with regard to requests to transport their coal gas through our natural gas pipelines. (9th Feb., 2012)
Q：It has been reported that PetroChina has completed the acquisition of a 20% interest in land and assets of Shell's Groundbirch project. Can you confirm whether or not this is the case? (2nd Feb., 2012)
A：We can confirm that PetroChina and Shell have signed binding agreements and completed the deal. According to the agreements, PetroChina acquired a 20% interest in Shell's wholly-owned land and assets in Groundbirch, which is in Northeast British Columbia, Canada. PetroChina and Shell intend to further advance the exchange of technology in the development of unconventional gas. PetroChina hopes to gain experience in management and production in the exploration and development of unconventional gas through its cooperation with Shell. Furthermore, PetroChina also hopes to achieve reasonable returns from its investment. (3rd Feb., 2012)
Q：What is the economic benefit to PetroChina in acquiring the equity interest in Groundbirch in Canada? (2nd Feb., 2012)
A：PetroChina has rigorous evaluation requirements for the acquisition of both domestic and overseas oil and gas assets in terms of reserves, economic benefits, ROI (return on investments) and risks. The Company only approves investments in projects which meet the ROI and risk control requirements. After thorough consideration and analysis, the Company concluded that the economic benefit of the Groundbirch project is in line with the Company's investment requirements. (3rd Feb. 2012)