China National Petroleum Corporation

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China National Petroleum Corporation 中国石油天然气集团公司

Type	Government-owned corporation
Founded	September 17, 1988
Headquarters	Beijing, People's Republic of China
Area served	Global (27 countries)
Key people	Jiang Jiemin, President Wang Guoliang, CFO
Industry	Oil & Gas
Products	Oil (fuels, lubricants) Natural Gas Petrochemical Oil Exploration Services Oil Exploration Equipments
Revenue	▲ $110.552 Billion USD (2006)^[1]
Net income	▲ $13.256 Billion USD (2006)^[1]
Employees	1,086,966 (2006)^[1]

The China National Petroleum Corporation (CNPC) (SEHK: 857),(SSE: 601857),(NYSE: PTR) (Simplified Chinese: 中国石油天然气集团公司, Traditional Chinese: 中國石油天然氣集團公司, Hanyu Pinyin: Zhongguo Shiyou Tianranqi Jituan Gongsi) is a state-owned fuel-producing corporation in the People's Republic of China. It is China's largest integrated oil and gas company. As of 2006, it was the second largest company in the world in terms of number of employees.

CNPC holds proved reserves of 3.7 billion barrels of oil equivalent. CNPC spun off most of its domestic assets into a separate company, PetroChina, during a restructuring. CNPC has 30 international exploration and production projects with operations in Azerbaijan, Canada, Indonesia, Myanmar, Oman, Peru, Sudan, Thailand, Turkmenistan, and Venezuela.

In October 2004, CNPC began construction of a pipeline from Middle East to Xinjiang.

In August 2005 it was announced that CNPC agreed to buy PetroKazakhstan for US$4.18 billion. This would be the largest overseas acquisition by a Chinese company. The acquisition was successfully completed 26 October 2005 after a Canadian court turned down an attempt by LUKoil to block the sale.[1]

A common shortname for the corporation in Chinese, Zhongguo Shiyou (中国石油), formerly shared the same name as the Chinese Petroleum Corporation, the Republic of China (Taiwan)'s state-owned fuel corporation.

1 History
2 Development of the Aral Sea
3 Industrial Disaster
4 References
5 See also
6 External links

[edit] History

CNPC can be traced from the beginning as a governmental department of the PRC government. In 1949, the Chinese government formed a Fuel Industry Ministry dedicated to the management of fuel. In January 1952 a sub department of the fuel ministry was formed to manage petroleum exploration and mining, it was called the Chief Petroleum Administration Bureau. In July 1955 a new ministry was created to replace the Fuel Industry Ministry, it was called the Ministry of Petroleum. From 1955 to 1969, approximately 4 oil fields were found in 4 areas in Qinghai, Heilongjiang (Daqing oilfield), Bohai Bay and Songliao basin. CNPC was finally created in 17 September 1988 when the government decided to disband the Ministry of Petroleum and created a state owned company to handle all Petroleum activities in China.

1993 marks the beginning of CNPC international operation. CNPC sign a service contract with the government of Peru to manage the Talara oilfield. It was followed by an oil contract with the government of Sudan to manage Block 1/2/4 in the Muglad oilfield. Then in June 1997 the company bought a 60.3% stake in the Aktobe Oil Company of Kazakhstan, the next month CNPC won an oil contract for the Intercampo oilfield and East Caracoles oilfield in Venezuela.

Further In July 1998, the company was restructurized by the government in accordance with the upstream and downstream principle of oil industry.^[2]

A PetroChina station in Xinjiang, China.

On 5 November 2007, CNPC was listed as A share in the Shanghai Stock Exchange.

[edit] Development of the Aral Sea

Ergash Shaismatov, the Deputy Prime Minister of Uzbekistan, announced on August 30, 2006 that the Uzbek government and an international consortium consisting of state-run Uzbekneftegaz, China National Petroleum Corporation, LUKoil Overseas, Petronas, and Korea National Oil Corporation signed a production sharing agreement to explore and develop oil and gas fields in the Aral Sea, saying, “The Aral Sea is largely unknown, but it holds a lot of promise in terms of finding oil and gas. There is risk of course but we believe in the success of this unique project." The consortium was created in September 2005.^[3]