Gedung Menara Kuningan GF, M, 16th, 19th, 21st, 22nd, 23rd, 25th, 26th, 27th Floor Jl. HR. Rasuna Said Blok X/7 Kav. 5 Jakarta 12940 Phone: (021) 5794 5300 | Fax: (021) 5794 5301 Company Profile PetroChina International Companies in Indonesia

www.petrochina.co.id Vision & President’s Note

Mission It has not been so long time since I was assigned to this country. As a newcomer, I looked carefully at the past performance of the company. By now, I could tell you that PetroChina International Companies in Indonesia is absolutely one of the best assets in both Petrochina domestic and worldwide for its profitability, complexity of the operations and effective management.

However, achievements belong to the past! The current critical situation of the low oil price in the world puts us in a new role and in a Our Vision serious risk. Undoubtedly, we must learn how to survive and grow. Become a leading international energy company in Indonesia by implementing performance in safety, occupational health, and environmental protection as well as As part of Petrochina in the world, one of the advantages we can take involving stakeholders in order to achieve long-term business sector. lies on Petrochina's experience of more than two decades worldwide, which has created trust in the countries where it operates due to the high standards, applied to perfect the safety and protection to the Our Mission environment. Furthermore, the financial strength and the talent The existence of PetroChina to produce energy (Energize) by always participating in accumulations have created investments for long terms. environmental preservation, concerning about the welfare of the community, and to maintain long-term business continuity (Harmonize). The other advantage we can take is the strong support of the We always make the effort to do our best in realizing the objectives of the Indonesia's government represented in its different levels, the company (Realize). contribution of our unique employees and the outstanding collaborations from our stakeholders. They are significant items to make our dreams coming true.

Hence, I am sure we will be able to find the light at the end of the tunnel even when it appears as a difficult task. Every adversity always opens doors to new opportunities and we have the potential to be resilient to the current situation through innovation and a team work.

Ladies and gentlemen, it is my commitment to get away the crisis and to make our company growing faster and higher, for which I devote my 30 years of experience and knowledge. No matter you believe or not, the solutions are always more than the problems.

"Caring for energy, caring for you" is the only slogan we have for this world!

Gong Bencai | President ndonesia ompanies in I tional C n a e r t n oChina I et r P 03 04

PetroChina International Companies in Indonesia familiar fieldsinthecountry. natural resourcesinvarious uncover andmanageimportant expertise andexperienceto PetroChina hasbeenapplyingits biodiversity. Since2002, rich innaturalresourcesand consisting ofover17,000islands, Indonesia isavastarchipelago International CompaniesinIndonesia International PetroChina West JambiIIBlock (KSO) Operator governance and management. PetroChina asthethirdbest intermsofcorporate Company intermsofprofitability anditranked Finance namedPetroChina asTheBestAsian PetroChina’s successdid not stopthere.Asian RMB andnetprofitsof142,224 millionYuanRMB. performance, withturnoverof688,978millionYuan Asia, duetoits2006’soutstandingfinancial PetroChina isatthetopofpubliccompaniesin company thatfocusesonnaturalenergy, Central Asia,America,andMiddleEast.Asa and naturalgas-relatedactivitiesinAfrica,Asia, PetroChina engagesinabroadrangeofpetroleum York. equity islistedinHongKong,ShanghaiandNew is CNPC’slargestholdingsubsidiary.Itsstock China NationalPetroleumCorporation(CNPC)and was establishedaspartoftherestructuring Law ofthePeople’sRepublicChina.PetroChina company withlimitedliabilityundertheCompany established onNovember5,1999asajointstock PetroChina CompanyLimited(PetroChina)was Operating innumerouscountriesaroundtheglobe, Bangko Block (PSC) Operator (PSC) NonOperator Selat PanjangBlock (PSC) Operator Jabung Block (PSC) NonOperator “B” Block South Jambi Tuban Block (JOB) NonOperator (PSC) Operator Madura Block company grows inthecomingyears. break newgrounds andexpanditsmarket asthe shows nosignofslowingdown. Itwillcontinueto its successoverthepastfew years,PetroChina a vitalsupplierofnaturalgas toSingapore.Despite 90,000 BOEPD.PetroChina hasalsosincebecome acquisition, productiondramatically increasedto The investmentpaidoff.AfterPetroChina’s Papua andEastJava. and gasproductionfieldsinJambiProvince,West PetroChina investedaggressivelyanddevelopedoil Seeing thepotentialinvastarchipelago, Pertamina, Indonesia’sstateoilcompany,in1970. Contract (PSC)asTrendInternationalLimited,with and hadsigneditsfirstProductionSharing acquired SantaFeEnergyResourcesbackin2000, and productionventures.DevonEnergyitselfhad its foremostinternationaloilandgasexploration Companies andmadeIndonesiaitsfirstoneof In 2002,PetroChinaacquiredDevonEnergy of world’s50largestoilcompanies. PetroChina astheseventhinitscomprehensivelist Petroleum IntelligenceWeeklyalsoranked (PSC) NonOperator Salawati Basin Sumatra. archipelago suchasWestPapua,EastJavaand fields invariouslocationsthroughoutthe developed anumberofoilandgasproduction and gasindustry,thecompanyhastakenover Ever sincePetroChinaventuredintoIndonesia’soil (JOB) NonOperator Salawati Island 05

PetroChina International Companies in Indonesia The environment is something PetroChina takes Being a part of the oil and gas business community seriously. Harmony with nature is at the center of makes PetroChina aware of a number of global what the company does, and PetroChina always challenges. Therefore, environmental, health and makes sure to minimize potential hazards and safety issues are at the top of the company’s shield the environment from harm during the priorities. PetroChina aims to always make the most production process. PetroChina controls its significant contribution in the natural course of the environmental, health and safety risks with a company’s activities by putting people first and comprehensive EHS (Environment, Health and protecting the legal rights of employees, enhancing Safety) management system. PetroChina does not production safety, reducing emissions, coordinating compromise when it comes to safety, striving for corporate development while protecting the zero accident, injury and pollution. It is the environment with every resource that the company company’s firm belief that hazards can only be has. eliminated if its employees are properly trained and strictly adhere to a 12-point Plan-Do-Check-Act system, and PetroChina continues to make sure that the system is ingrained within each and every employee.

PetroChina is committed to maintain balance and be ever mindful of the environment. Before and after any activities such as seismic survey, exploration drilling or production start up, PetroChina makes sure to conduct comprehensive environmental assessments. The company carries out rigorous management and monitoring, environmental impact assessments and environmental risk assessments.

PetroChina is also committed to use clean energy and environmental-friendly products. Being mindful of the environment is of the utmost importance, and PetroChina will continue to do its very best to be an environment-friendly and nature-conserving company.

EnvironmentEnvironment Xu Yalin | VP Finance & Control HealthHealth && SafetySafety ndonesia ndonesia ompanies in I ompanies in I PetroChinaPetroChina isis committedcommitted toto maintainmaintain balancebalance andand bebe everever mindfulmindful ofof environment.environment. BeforeBefore andand afterafter anyany activitiesactivities suchsuch asas seismicseismic tional C tional C survey, exploration drilling or production start up, PetroChina n a survey, exploration drilling or production start up, PetroChina n a e r e r t t n n makesmakes suresure toto conductconduct comprehensivecomprehensive environmentalencironmental assessments.assessments. oChina I oChina I et r et r P P 0606 08

PetroChina International Companies in Indonesia Gemah. Geragai, Makmur,NorthBetara,NortheastBetaraand plus gasdiscoveriesinvariouslocationssuchasNorth Sumatra, earlierexplorationeffortshadyieldedoiland the PSCcoveringJabungBlockinJambi,Central that PetroChinahasacquired.Whentookover Jabung BlockinSumatraisoneofthemostexcitingblocks in Sumatra Jabung Block (PSC) 2.713SQ.KM Jabung Block Batam IslandtoSingapore. pipeline connectingtheCorridor-BatamSpurSystemthrough cubic feetofgasperday.Theistransportedviaa450km percent ofthegasneeded,andpresentlysupplies140million per daytoSingaporePower.In2008,PetroChinasupplied40 20-year agreementtosupplyup350standardcubicfeetofgas In 2003PetroChinaandtwoothergassupppliersstruckup LPG. gas, 9,000barrelsofcondensateand1,500MT(MetricTons) million cubicfeetofrawgasinto100sales the domesticand/oroverseasmarket,canprocessupto250 condensate terminalsfromwhichPetroChinacanshipproductsto offshore LPGrefrigerationandstorageaswellcrude gases flowingfromthesefields.TheBetaraFacilities,thatinclude Processing Facilities,completedin2005,toprocesstheliquid-rich went intoproduction.PetroChinatheninvestedintheBetaraGas In 2002,oilzonesinNorthBetara,NortheastBetaraandGemah PetroChina establishedgasplantsatNorthGeragai. from thegasproducedinNorthGeragaiandMakmurfields, To extractliquids,LPG(LiquidPetroleumGas)andcondensate North GeragaiandMakmurhavebeeninproductionsince1998. Jabung Yu Guoyi| General Manager 09

PetroChina International Companies in Indonesia AsAs explorationexploration inin JabungJabung blockblock continues,continues, PetroChinaPetroChina discovereddiscovered oiloil andand gasgas inin variousvarious locations,locations, suchsuch asas RipahRipah inin 2001,2001, WestWest BetaraBetara inin 20042004 andand SouthwestSouthwest BetaraBetara inin 2005.2005. MoreMore explorationexploration andand discovereydiscoverey wellswells werewere successfullysuccessfully drilleddrilled inin 2007,2007, thatthat werewere Lumbung-1,Lumbung-1, WestWest Betara-5,Betara-5, Merta-1,Merta-1, Suko-1,Suko-1, Panen-1,Panen-1, andand SouthSouth Betara-3.Betara-3. ThoseThose wellswells hadhad beenbeen completedcompleted withwith aa provenproven totaltotal flowflow raterate ofof 2,2062,206 barrelsbarrels ofof oiloil andand condensatecondensate perper day,day, andand 93.893.8 millionmillion cubiccubic feetfeet ofof gasgas perper day.day.

InIn 2008,2008, thethe companycompany alsoalso discovereddiscovered condensatecondensate andand gasgas inin NorthNorth BetaraBetara Extension/Extension/ NBE-1,NBE-1, withwith totaltotal testingtesting raterate ofof 490490 barrelsbarrels ofof condensatecondensate perper day,day, andand 11.3711.37 MMSCFMMSCF ofof gas.gas. ItIt alsoalso mademade succesfulsuccesful discoverydiscovery inin Marmo-1,Marmo-1, thatthat resultedresulted inin provenproven flowflow raterate ofof 2,8352,835 barrelsbarrels ofof oiloil perper day.day.

TheThe successsuccess explorationexploration storystory continuedcontinued toto 2010,2010, whenwhen thethe companycompany discovereddiscovered oiloil andand gasgas inin PanenPanen Utara-1Utara-1 withwith provenproven flowflow raterate ofof 3,8773,877 BOPDBOPD ofof oiloil andand 6.76.7 MMSCFDMMSCFD ofof gas.gas. InIn thethe samesame year,year, itit discovereddiscovered SabarSabar Utara-1Utara-1 withwith provenproven totaltotal flowflow raterate ofof 365365 BPDBPD ofof condensatecondensate andand 5.15.1 MMSCFDMMSCFD ofof gas.gas.

BasementBasement fracturefracture becomebecome aa newnew explorationexploration targettarget inin northernnorthern SouthSouth SumatraSumatra basin.basin. InIn 2013,2013, thethe firstfirst BasementBasement Well,Well, NEBNEB Base-1,Base-1, successfullysuccessfully tested.tested. AA totaltotal ofof 1818 MMCFGD+MMCFGD+ 725BCPD725BCPD fromfrom thatthat basementbasement waswas flowedflowed 3.33.3 MMCFGD+MMCFGD+ 150150 BCPD.BCPD. TiungTiung Utara-1Utara-1 discoverydiscovery flowedflowed gasgas andand condensatecondensate inin earlyearly 20142014 atat 1111 MMCFGD+MMCFGD+ 270270 BCPD,BCPD, provenproven thatthat TiungTiung structurestructure containcontain significantsignificant HCHC potentialpotential toto bebe developeddeveloped inin nearnear future.future.

TheThe companycompany alsoalso expectsexpects thethe highlyhighly promisingpromising discoveriesdiscoveries inin Panen,Panen, Sabar,Sabar, BerkahBerkah andand SukoSuko toto yieldyield recoverablerecoverable reservereserve ofof 363.82363.82 MMSCFGMMSCFG ofof gas,gas, 44.8244.82 MMBOMMBO ofof oiloil andand 7.247.24 MMBCMMBC ofof condensate.condensate. InIn 2015,2015, thethe JabungJabung BlockBlock recordedrecorded averageaverage dailydaily productionproduction ofof 55,55155,551 BOEPD.BOEPD. ndonesia ndonesia ompanies in I ompanies in I tional C tional C n a n a e r e r t t n n oChina I oChina I et r et r P P 1010 Bangko Block in Sumatra Bangko Block (PSC) 770 SQ KM

The first discovery, Gambang-1 was tested gas with small amount of oil. It is estimated that the Gambang field holds 55 billion standard cubic feet (BSCF) of natural gas.

In 2003 oil discoveries of Piano-1 and West Piano-1 tested total over 1,520 BOPD+ 7.7 MMCFGD, prompted the company to drill more wells and develop West Piano since 2005. Peak production of West Piano field once reached over 1,200 BOPD from tertiary Gumai Sand reservoir. A total of 420 MBO has been produced from West Piano field. ndonesia ompanies in I tional C n a e r t n

Liu Hongna | VP Business oChina I et r P 12

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PetroChina International Companies in Indonesia in EastJava Tuban Block Madura Block (PSC) 2.713SQKM (JOB) 1.478SQKM Gusminar |VPSupplyChainManagement & production ofTubanblockwasreporte20,000BOEFD in2015. PetroChina continuestooperatebothfields.Theaverage daily Under amutuallyprofitableJOBcontractwithPertamina, all thankstothewiseacquisitionofTubanBlock. 5,000BOEPDin2004to28,000early2008, production fromtheMudiandSukowatifields PetroChina deliveredanoutstandingfive-foldincrease in in production. viable. TheSukowatifieldproduces21,500BOEPDwith32wells more wellsandputthemintoproductionassoontheywere BOEPD. Certainofthefield’spotential,PetroChinadrilledfour after takingovertheTubanBlockJOB,whichinitiallyyielded7,000 tested andputthefirsttwoSukowatiwellsinproduction2004, In 2001,theSukowatifieldwasdiscovered.PetroChinapromptly moored 18kmoffthecoastofEastJava. processed, transportedandstoredforexportinafloatingoilbarge after theblock’sMudifieldcameonlinein1997.Oilisextracted, The fieldhasyieldedmorethan33millionbarrelsofoilequivalent the areain1930s. examining thepotentialofblock,explored Maatschappij), thefirstoilcompany Royal DutchShellDPM(DordtschePetroleum Java hasbeenthesubjectofexploration. For morethanacenturyTubanBlockinEast Tuban Block Operation Supports 17

PetroChina International Companies in Indonesia Kepala Burung Salawati Island Block

Kepala Burung in Papua Salawati Island Block (PSC) 1.097 SQ KM

Salawati Basin Block (PSC) 885 SQ KM

PetroChina teams up with Pertamina in Joint Operating Body (JOB) covering Kepala Burung Salawati Island Block in Sorong, West Papua.

The achievements of JOB Pertamina-PetroChina Salawati include an onshore exploration and development activities. The average daily production in 2015 reached 1,822 BOPD of oil and 5.5 MMSCFD of gas. ndonesia ndonesia ompanies in I ompanies in I tional C tional C n a n a e r e r t t n n oChina I oChina I et r et r P P 18 19 PetroChina’s social programs are designed to seeds;of hand roe tractors; for fish vegetable, farming; and palm fresh and capital rubber for tree reach out to communities around our working area. basketseeds; roeweaving for fish and farming; other home and fresh industries. capital for Not only do we aim to nurture amicable ties with basket weaving and other home industries. the communities, we also hope that the social The financial improvement should be supported by programs will improve their life quality. adequateThe financial infrastructures. improvement Realizing should be that supported need, by PetroChinaadequate infrastructures. has done its best Realizing to provide that need,necessary PetroChina works closely with the local publicPetroChina facilities has such done as its schools, best to provideroads, bridges necessary governments to figure out the most ideal programs andpublic houses facilities of worship such as inschools, Jambi, roads,East Java bridges and needed by the people. In Jambi Province, we Papua.and houses As of of 2013, worship PetroChina in Jambi, renovated East Java 287 and initiated the cow distribution for local cattlemen. By housesPapua. Asin Jambi of 2013, Province. PetroChina The companyrenovated also 287 the end of 2012, PetroChina distributed a total of providedhouses in materials Jambi Province. for the constructions The company of also 826 cows for groups of farmers. Apart from mosques,provided materials churches for and the community constructions halls. of In 2014, supplying the qualified calves, PetroChina also wemosques, built clean-water churches andfacilities community in numerous halls. Inareas 2014, in provided dairy training, technical assistance from Tanjungwe built clean-waterJabung Timur facilities Regency in numerousin Jambi. Someareas ofin the government’s animal husbandry agency, and theTanjung water Jabung facilities Timur used Regency solar and in wind-generated Jambi. Some of biogas digester to convert cow manure into electricity.the water facilities To highlight used our solar commitment and wind-generated to promote methaneand biogas gas. digester The digester to convert transforms cow manure the waste into theelectricity. renewable To highlight energy, weour also commitment installed solarto promote street intomethane a low-price gas. The alternative digester energy.transforms Other the economic waste lightsthe renewable in Jambi energy,and solar we panels also installed providing solar street developmentinto a low-price programs alternative included energy. the Other procurement economic electricitylights in Jambi for several and solar households panels providing in West Papua. ofdevelopment hand tractors; programs vegetable, included palm theand procurement rubber tree electricity for several households in West Papua.

Maryke P.Y. Pulunggono | VP Human Resources & Relations

Corporate Social Responsibility ndonesia ndonesia ndonesia ndonesia ompanies in I ompanies in I ompanies in I ompanies in I tional C tional C tional C tional C n a n a n a n a e r e r e r e r t t t PetroChina has always believed that the success of the company t n n n n requires strong and harmonious partnerships with local oChina I oChina I oChina I governments and people living around our operational sites. oChina I Maryke P.Y. Pulunggono | VP HR & Services et r et r et r et r P P P P 20 21 Corporate Social Responsibility

While making buildings seems to be our main agenda, strengthening the people is our biggest concern. PetroChina regularly provides nutritional supplements for children under five and medical assistance programs that enables free surgeries such as cataract. The company also pays much attention to education sector by awarding scholarships for gifted students to reach higher education and providing inspiring books for school libraries.

We consider the local governments as main stakeholders. PetroChina strives for mutual and harmonious relations with the local administrations and continously works hand-in-hand with them to improve the quality of the people. Realizing that Indonesia is prone to several natural disaster given its geographical location, PetroChina is ready to provide emergency assistance and disaster relief when needed. ndonesia ndonesia ompanies in I ompanies in I tional C tional C n a n a e r e r t t n n oChina I oChina I et r et r P P 22 23 24

PetroChina International Companies in Indonesia For Loyalty Appreciation together withthecompany. improve theirperformance andflourishtheircommitmenttodevelop employees. Aboveall,we hope thissymbolofappreciationwill will strengthenharmoniousrelationshipbetweenthe companyandthe passed certainperiodoftimesinthiscompany.Hopefully, theawards We regularlyhostServiceAwardCelebrationsforthose whohave loyalty tostaywithusthroughtheyears. PetroChina, wehighlyappreciateour staffs’ contributions fromitsemployees.In It iseverycompany’sdreamtoenjoy worthy 25

PetroChina International Companies in Indonesia 26

PetroChina International Companies in Indonesia PetroChina What’s Nextfor value forourstakeholders. increasing Indonesiangovernment’srevenuesaswelladding deliver Indonesianoilandgastoevenwidermarkets,thereby products tothemarketsweserve,suchasSingapore,aim extensive processingfacilitiesenablingustodeliveroilandgas PetroChina delivers.Wethinklong-term.Afterinvestingin equivalent perdayinfiveyears. fields toreachaproductiontargetof200,000barrelsoil increasing exploration,nowweseekopportunitiestodevelopnew reworking anddevelopingmaturefields,boostingproduction PetroChina develops.Afterresistingproductiondeclineby Indonesian archipelago. resources inadditionalblocksthroughoutthe that wemanage,nowaimtofindnew discovered oilandgasresourcesintheblocks PetroChina discovers.Havingsuccessfully 27

PetroChina International Companies in Indonesia