PetroChina is the largest oil and gas producer and distributor, playing a dominant role in the oil and gas industry in China. It is one of the companies with hugest sales revenue in China. It is engaged in wide range of activities related to oil and natural gas, including:

exploration, development, production and marketing of crude oil and natural gas;

refining, transportation, storage and marketing of crude oil and oil products;

production and marketing of primary petrochemical products, derivative chemicals and other chemicals;

transportation of natural gas, crude oil and refined oil, and marketing of natural gas.

The business of the company covers all key sectors in the petroleum and petrochemical industry. It forms an optimal, efficient and integrated business chain from exploration and production of crude oil and natural gas in the upper stream to the refining, chemicals, pipelining and marketing in the middle and down stream, which greatly improves the operation efficiency, reduces costs and enhances the core competitiveness and overall anti-risk capability.

PetroChina has made great progress in terms of internationalization strategy. As of June 30, 2007, our exploration and development business extended to 11 foreign countries and regions. By December 31, 2006, the overseas proved oil and gas reserves accounted for 5.5% and 1.5% of total respectively, and the overseas oil and gas production in 2006 accounted for 6% and 3% of total respectively.