Contents:

1 2 1.1 List of Tables 8 1.2 List of Figures 11 2 China Energy Sector 12 2.1 China Energy Sector, Market Overview 12 2.2 China Energy Sector, Natural Gas 13 2.2.1 China Natural Gas, Overview 13 2.2.2 China Natural Gas, Supply and Demand Balance 13 2.2.3 China Natural Gas, Regulatory Structure 18 2.2.4 China Natural Gas, Infrastructure 18 3 China Fiscal Regime 19 3.1 China Petroleum Fiscal Environment 19 3.2 License Terms 20 3.3 Key Fiscal Terms 21 3.4 Sample Cashflows Calculations 26 4 China Gas Upstream Investment Environment Benchmarking 27 4.1 Introduction 27 4.2 The Overall Ranking 27 4.3 Upstream Fiscal Attractiveness 27 4.3.1 Maximum Government Take Index 29 4.3.2 Maximum State Participation 29 4.4 Gas Sector Performance 30 4.4.1 Exploration Activity 32 4.4.2 Gas Production 33 4.4.3 Gas Reserves 33 4.4.4 Gas Consumption 33 4.5 Economic Performance 34 4.5.1 GDP Growth Index 35 4.5.2 FDI Confidence Index 35 4.5.3 Balance of Trade Index 36 4.6 Socio-Political Performance 36 4.6.1 Democracy Index 38 4.6.2 Governance Index 38 5 China Exploration and Production Sector 39 5.1 China Exploration and Production Sector, Country Snapshot 39 5.1.1 China Exploration and Production Sector, Key Data 39 5.1.2 China Exploration and Production Sector, Natural Gas Assets Map 39 5.2 China Exploration and Production Sector, Marketed Natural Gas Production 40 5.2.1 China Exploration and Production Sector, Marketed Natural Gas-Historical Production 40 5.2.2 China Exploration and Production Sector, Marketed Natural Gas Production by Assets 41 5.2.3 China Exploration and Production Sector, Marketed Equity Weighted Natural Gas Production by Company 42 5.2.4 China Exploration and Production Sector, Market Share (%) based on Marketed Natural Gas Production 44 5.3 China Exploration and Production Sector, Marketed Natural Gas Forecasts 45 5.3.1 China Exploration and Production Sector, Marketed Natural Gas Forecasted Production 45 5.3.2 China Exploration and Production Sector, Gross Revenue Forecast 45 5.3.3 China Exploration and Production Sector, Government Take Forecast 46 5.3.4 China Exploration and Production Sector, Contractor Take Forecast 46 5.4 China Exploration And Production Sector, Natural Gas Asset Details 47 5.4.1 China Exploration And Production Sector, Active Natural Gas Asset Details 47 5.4.2 China Exploration And Production Sector, Planned Natural Gas Asset Details 48 6 China Pipeline Sector 49 6.1 China Pipeline Sector, Key Data 49 6.2 China Pipeline Sector, An Overview 49 6.3 China Pipeline Sector, Comparison of Key Natural Gas Pipeline Companies 49 6.4 China Pipeline Sector, Natural Gas Pipelines 51 7 China LNG Sector 54 7.1 China LNG Sector, Key Data 54 7.2 China LNG Sector, Regasification 54 7.2.1 China LNG Sector, Regasification, Total Regasification Capacity 54 7.2.2 China LNG Gas Sector, Regasification Capacity- Wise (Bcf) Market Share By Company 56 7.2.3 China LNG Sector, Asset- Wise Regasification Capacity 57 8 China Under Ground Storage Gas Sector 58 8.1 China Under Ground Storage Sector, Key Data 58 8.2 China Underground Gas Storage Sector, An Overview 58 8.3 China Underground Gas Storage Sector, Capacity-Wise Market Share by Company 58 8.4 China Underground Gas Storage Sector, Storage Capacity 59 9 Profile of PetroChina Company Limited 60 9.1 PetroChina Company Limited, Key Information 60 9.2 PetroChina Company Limited, Company Overview 60 9.3 PetroChina Company Limited, Business Description 60 9.3.1 PetroChina Company Limited, Business Description, Business Overview 60 9.3.2 PetroChina Company Limited, Business Description, Chemicals and Marketing 61 9.3.3 PetroChina Company Limited, Business Description, Exploration and Production 62 9.3.4 PetroChina Company Limited, Business Description, Natural Gas and Pipeline 63 9.3.5 PetroChina Company Limited, Business Description, Refining and Marketing 65 9.3.6 PetroChina Company Limited, Business Description, Major Products and Services 67 9.4 PetroChina Company Limited, Value Chain Analysis 69 9.4.1 PetroChina Company Limited, Value Chain Analysis, Upstream 69 9.4.2 PetroChina Company Limited, Value Chain Analysis, Midstream 70 9.4.3 PetroChina Company Limited, Value Chain Analysis, Downstream 70 9.4.4 PetroChina Company Limited, Value Chain Analysis, Retail 71 9.5 PetroChina Company Limited, SWOT Analysis 71 9.5.1 PetroChina Company Limited, SWOT Analysis, Overview 71 9.5.2 PetroChina Company Limited, SWOT Analysis, Strengths 72 9.5.3 PetroChina Company Limited, SWOT Analysis, Weaknesses 73 9.5.4 PetroChina Company Limited, SWOT Analysis, Opportunities 75 9.5.5 PetroChina Company Limited, SWOT Analysis, Threats 76 9.6 PetroChina Company Limited, Revenue Analysis 77 9.6.1 PetroChina Company Limited, Revenue by Segment 77 9.6.2 PetroChina Company Limited, Revenue by Geography 78 9.7 PetroChina Company Limited, Financial and Operational Review 79 9.7.1 Financial Statements 79 9.7.2 Financial Ratios 80 10 Profile of China Petroleum & Chemical Corporation 81 10.1 China Petroleum & Chemical Corporation, Key Information 81 10.2 China Petroleum & Chemical Corporation, Company Overview 81 10.3 China Petroleum & Chemical Corporation, Business Description 81 10.3.1 China Petroleum & Chemical Corporation, Business Description, Business Overview 81 10.3.2 China Petroleum & Chemical Corporation, Business Description, Chemicals 81 10.3.3 China Petroleum & Chemical Corporation, Business Description, Exploration and Production 83 10.3.4 China Petroleum & Chemical Corporation, Business Description, Marketing and Distribution 84 10.3.5 China Petroleum & Chemical Corporation, Business Description, Refining 85 10.3.6 China Petroleum & Chemical Corporation, Business Description, Major Products and Services 87 10.4 China Petroleum & Chemical Corporation, Value Chain Analysis 89 10.4.1 China Petroleum & Chemical Corporation, Value Chain Analysis, Upstream 89 10.4.2 China Petroleum & Chemical Corporation, Value Chain Analysis, Midstream 90 10.4.3 China Petroleum & Chemical Corporation, Value Chain Analysis, Downstream 90 10.4.4 China Petroleum & Chemical Corporation, Value Chain Analysis, Retail 91 10.5 China Petroleum & Chemical Corporation, SWOT Analysis 92 10.5.1 China Petroleum & Chemical Corporation, SWOT Analysis, Overview 92 10.5.2 China Petroleum & Chemical Corporation, SWOT Analysis, Strengths 93 10.5.3 China Petroleum & Chemical Corporation, SWOT Analysis, Weaknesses 93 10.5.4 China Petroleum & Chemical Corporation, SWOT Analysis, Opportunities 94 10.5.5 China Petroleum & Chemical Corporation, SWOT Analysis, Threats 95 10.6 China Petroleum & Chemical Corporation, Revenue Analysis 96 10.6.1 China Petroleum & Chemical Corporation, Revenue by Segment 96 10.7 China Petroleum & Chemical Corporation, Financial and Operational Review 98 10.7.1 Financial Statements 98 10.7.2 Financial Ratios 99 11 Profile of CNOOC Limited 100 11.1 CNOOC Limited, Key Information 100 11.2 CNOOC Limited, Company Overview 100 11.3 CNOOC Limited, Business Description 100 11.3.1 CNOOC Limited, Business Description, Overview 100 11.3.2 CNOOC Limited, Business Description, Independent Operations 101 11.3.3 CNOOC Limited, Business Description, Production Sharing Contracts 101 11.3.4 CNOOC Limited, Business Description,Trading 102 11.3.5 CNOOC Limited, Business Description, Major Products and Services 102 11.4 CNOOC Limited, Value Chain Analysis 103 11.4.1 CNOOC Limited, Value Chain Analysis Upstream 103 11.5 CNOOC Limited, SWOT Analysis 105 11.5.1 CNOOC Limited, SWOT Analysis Overview 105 11.5.2 CNOOC Limited, SWOT Analysis Strengths 105 11.5.3 CNOOC Limited, SWOT Analysis Weaknesses 107 11.5.4 CNOOC Limited, SWOT Analysis, Opportunities 107 11.5.5 CNOOC Limited, SWOT Analysis, Threats 109 11.6 CNOOC Limited, Revenue Analysis 110 11.7 CNOOC Limited, Revenue by Segment 110 11.8 Revenue by Geography 111 11.9 CNOOC Limited, Financial and Operational Review 112 11.9.1 Financial Statements 112 11.9.2 Financial Ratios 113 12 Financial Deals Landscape 114 12.1 Detailed Deal Summary 114 12.1.1 Acquisition 114 12.1.2 Debt Offerings 120 12.1.3 Partnerships 123 12.1.4 Asset Transactions 134 13 Recent Developments 138 13.1 License Awards 138 13.1.1 Mar 09, 2009: PetroChina Receives Approval To Build LNG Terminal In Shenzhen 138 13.2 Strategy and Business Expansion 138 13.2.1 Apr 01, 2009: Sinopec To Construct Four Oil Storage Bases 138 13.2.2 Mar 31, 2009: Sinopec Plans To Expand Refining Capacity By 2010 138 13.2.3 Mar 20, 2009: Total Plans To Start Refining And Petrochemicals Projects In China 139 13.2.4 Mar 19, 2009: PetroChina Plans To Increase Overseas Oil And Gas Production Operations 140 13.3 Recent Discoveries 140 13.3.1 Mar 26, 2009: CNOOC Announces Two New Discoveries In Bohai Bay, China 140 13.4 Drilling and Production Updates 141 13.4.1 Mar 24, 2009: Sinopec Processes 3.29 Million Bpd Of Crude Oil In January And February 2009 141 13.4.2 Mar 20, 2009: CNOOC Commences Huizhou Refinery In China 141 13.4.3 Mar 19, 2009: CNPC To Raise Overseas Oil, Gas Production In Next 10 Years 142 13.4.4 Mar 18, 2009: CNOOC Commences Production From PY 30-1 Gas Field At Pearl River Mouth Basin In Eastern South China Sea 142 13.4.5 Mar 12, 2009: Anadarko Petroleum Plans To Drill Exploration Wells In Indonesia And China 143 13.5 Financial Announcements 143 13.5.1 Mar 30, 2009: Sinopec Reports Net Profit Of CNY29.7 Billion For Year-End 2008 143 13.5.2 Mar 25, 2009: PetroChina Reports Turnover Of CNY1.1 Trillion For Year-End 2008 146 13.5.3 Mar 16, 2009: China Natural Gas Reports 2008 Results 149 13.6 Other Significant Developments 151 13.6.1 Apr 01, 2009: CNOOC To Invest CNY44.2 Billion For Expansion Of Huizhou Refinery, China 151 13.6.2 Mar 31, 2009: PetroChina Commences Operations On China Lanzhou-Zhengzhou Oil Pipeline 152 13.6.3 Mar 27, 2009: Sinopecs Commercial Oil Reserve Base In Shanghai Comes Into Operation 152 13.6.4 Mar 27, 2009: China Natural Gas Announces Resignation Of Richard Wu As Chief Financial Officer 153 13.6.5 Mar 26, 2009: China To Encourage Its Energy Firms For More Ventures Overseas 153 13.6.6 Mar 24, 2009: Uruguay Calls Chinese Firms To Bid In Its Oil, Gas Round 154 13.6.7 Mar 23, 2009: PetroChina Xinjiang To Increase Oil Storage Capacity By 60% 155 13.6.8 Mar 20, 2009: Sinopecs Phase I Sichuan-To-East Pipeline Project To Commence In May 2009 156 13.6.9 Mar 19, 2009: Venezuela Starts Construction Of Venezuelan-Chinese Oil Refinery: President Chavez Says 156 13.6.10 Mar 17, 2009: CNOOC Commences Trial Run On Huizhou Refinery In China 156 13.6.11 Mar 14, 2009: Iran, China Sign $3.3 Billion Agreement For South Pars Gas Field 157 13.6.12 Mar 12, 2009: Chinas Crude Oil Output Drops By 1.7% In January And February 2009 157 13.6.13 Mar 11, 2009: CNPC To Reduce Investment In Oil And Gas Exploration In 2009 158 13.6.14 Mar 09, 2009: CNPC Commences Preliminary Work On Third West-East Gas Pipeline 158 13.7 New Contracts Announcements 159 13.7.1 Mar 26, 2009: China Natural Gas Signs Power Supply Agreement For LNG Plant 159 14 Appendix 160 14.1 Methodology 160 14.1.1 Coverage 161 14.1.2 Secondary Research 162 14.1.3 Primary Research 162 14.1.4 E&P Forecasts 162 14.1.5 Midstream Forecasts 164 14.1.6 Expert Panel Validation 164 14.2 Contact Us 164 14.3 About Us 164 14.4 Disclaimer 165 Executive Summary 1.1 List of Tables Table 1: China, Historical and Forecasted Production and Consumption of Natural Gas, 1996-2020 14 Table 2: LNG Regasification Capacity, China, 2006-2015 16 Table 3: China, Historical Reserves of Natural Gas, 1996-2008 17 Table 4: China, Crude Oil and Natural Gas, Onshore Relinquishment Requirement, 2007 20 Table 5: China, Crude Oil and Natural Gas, Offshore Relinquishment Requirement, 2007 21 Table 6: China, Crude Oil, Royalty Rate, 2007 22 Table 7: China, Natural Gas, Royalty Rate, 2007 22 Table 8: China, Natural Gas, Profit Gas, 2007 23 Table 9: China, Crude Oil, Profit Oil, 2007 24 Table 10: China, Rate of Depreciation, 2007 24 Table 11: South Asia, Investment Benchmarking, Overall Country Rankings, 2008 27 Table 12: South Asia, Investment Benchmarking, Upstream Fiscal Attractiveness, 2008 28 Table 13: South Asia, Investment Benchmarking, Gas Sector Performance, 2008 30 Table 14: South Asia, Investment Benchmarking, Economic Performance, 2008 34 Table 15: South Asia, Country Standings, Economic Performance, 2008 34 Table 16: South Asia, Investment Benchmarking, Socio-Political Performance, 2008 36 Table 17: South Asia, Country Standings, Socio-Political Performance, 2008 37 Table 18: China, Natural Gas Key Statistics, 2008 39 Table 19: China, Total Marketed Natural Gas Production (MMcf), 2001-2008 40 Table 20: China, Marketed Natural Gas Production (MMcf), by Assets, 2001-2008 41 Table 21: China, Marketed Equity Weighted Natural Gas Production (MMcf), by Company, 2001-2008 42 Table 22: China, Market Share (%) based on Marketed Natural Gas Production, 2001-2008 44 Table 23: China, Marketed Natural Gas Production(MMcf), Forecast by Assets, 2009-2014 45 Table 24: China, Forecasted Assets-wise Gross Revenue(000$), 2009-2014 45 Table 25: China, Projected Assets-wise Total Government Take(000$), 2009-2014 46 Table 26: China, Projected Assets-wise Total Contractor Take(000$), 2009-2014 46 Table 27: China, Active Gas Field Assets Details 47 Table 28: China, Planned Gas Field Assets Details 48 Table 29: China, Pipeline Key Statistics, 2008 49 Table 30: China, Natural Gas Pipelines Length By Company (Km), 2008 49 Table 31: China, Natural Gas Pipelines, 2008 51 Table 32: China, Natural Gas Pipelines, 2008 (Contd.) 52 Table 33: China, Natural Gas Pipelines, 2008 (Contd.) 53 Table 34: China, LNG Key Statistics, 2008 54 Table 35: China Regasification Capacity (Bcf), 2000-2015 54 Table 36: China Regasification Capacity (Bcf), 2000-2015 55 Table 37: China, Regasification Capacity, Company- Wise (Bcf), 2000-2015 56 Table 38: China Regasification Capacity, Company- Wise (Bcf), 2000-2015 56 Table 39: China Regasification Capacity (Bcf), 2000-2015 57 Table 40: China Underground Gas Storage Key Statistics, 2008 58 Table 41: China Underground Gas Storage Capacity, Company-wise, 2008 58 Table 42: China Underground Gas Storage Capacity, Company-wise, 2008 59 Table 43: China, Underground Gas Storage Capacity, 2008 59 Table 44: PetroChina Company Limited, Key Facts 60 Table 45: PetroChina Company Limited, SWOT Analysis 72 Table 46: PetroChina Company Limited, Revenue by Segment, RMB Million, 2003-2007 78 Table 47: PetroChina Company Limited, Revenue by Geography, RMB Million, 2003-2007 78 Table 48: PetroChina Company Limited, Financial Statements, RMB Million, 2003-2007 79 Table 49: PetroChina Company Limited, Financial Ratios, RMB Million, 2003-2007 80 Table 50: China Petroleum & Chemical Corporation, Key Facts 81 Table 51: China Petroleum & Chemical Corporation, SWOT Analysis 92 Table 52: China Petroleum & Chemical Corporation, Revenue by Segment, RMB Million, 2003-2007 97 Table 53: China Petroleum & Chemical Corporation, Financial Statements, RMB Million, 2003-2007 98 Table 54: China Petroleum & Chemical Corporation, Financial Ratios, RMB Million, 2003-2007 99 Table 55: CNOOC Limited, Key Facts 100 Table 56: CNOOC Limited, SWOT Analysis 105 Table 57: CNOOC Limited, Revenue by Segment, Rmb Thousand, 2003-2007 111 Table 58: CNOOC Limited, Revenue by Geography, Rmb Thousand, 2003-2007 111 Table 59: CNOOC Limited, Financial Statements, Rmb Thousand, 2003-2007 112 Table 60: CNOOC Limited, Financial Ratios, Rmb Thousand, 2003-2007 113 Table 61: CNOOC Ningbo Daxie Petrochemical Plans To Acquire Zhejiang Zhoushan Hebang Chemical 114 Table 62: China Natural Gas Acquires Lingbao Yuxi Natural Gas 115 Table 63: CNPC Hong Kong To Acquire 97.26% Stake In Xinjiang Xinjie From CNPC 116 Table 64: PetroChina Acquires 56.66% Stake In CNPC (Hong Kong) 117 Table 65: Zhongran Investment Acquires 30% Interest In Zhongyou Hua Dian From China Petroleum Pipeline 118 Table 66: China National Petroleum To Sell Its Stake In China United Coalbed Methane To China National Coal Group 119 Table 67: Sinopec Announces Debt Offering Of $2,930 Million 120 Table 68: PetroChina Announces Debt Offering Of $11,700 Million 121 Table 69: Petrochina Files For Bond Offering Of $8,700 Million 122 Table 70: Dalian Port (PDA), PetroChina And Dalian Construction To Form A Joint Venture 123 Table 71: China National Petroleum To Form A Joint Venture With China Shipping Development 124 Table 72: Xinjiang Guanghui To Form Joint Venture With Tarbagatay Munay 125 Table 73: GreatPoint Energy Enters Into Partnership With Datang Huayin Electric Power 126 Table 74: KazMunayGaz Enters Into Partnership With CNPC 127 Table 75: Sinopec Enter Into Partnership With Kuwait Petroleum 128 Table 76: China Era Energy Enters Into Partnership With CNPC 129 Table 77: Qatar And Shell Signs Letter Of Intent To Form Joint Venture With PetroChina 130 Table 78: Shell Partners With Arrow Energy 131 Table 79: PetroChina Forms Joint Venture With PDVSA 132 Table 80: China Gas Holdings To Enter Into Partnership With Arrow Energy And GAIL (India) 133 Table 81: Arrow Energy Enters Into Farm-In Agreement With Far East Energy 134 Table 82: CNOOC To Farm-In Deepwater Block 43/11 135 Table 83: Pacific Asia Petroleum To Acquire 39% Interest In Fu710 And Meilisi723 136 Table 84: Husky Energy To Acquire Exploration Block 63/05 From China National Offshore Oil 137

Companies Mentioned

PetroChina Company Limited China Petroleum & Chemical Corporation CNOOC Limited