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2014 Sustainability Report 2014 Sustainability Report 3

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2014 Sustainability Report 2014 Sustainability Report 3 CONTENTS SUSTAINED ENERGY SAFE AND CLEAN CUSTOMER-FIRST “PEOPLE-ORIENTED” GIVING BACK SUPPLY PRODUCTION AND MARKET SERVICE EMPLOYEE DEVELOPMENT TO SOCIETY OPERATION 02 About PetroChina 19 Consolidating Our Resource Base 25 Improving HSE Management 37 Enhancing Quality Management 45 Employee Rights 53 Promoting Local Development 04 Message from the Chairman 20 Optimizing Our Product Mix and 28 Enhancing Operational Safety 39 Focusing on Product Innovation 47 Occupational Health Refining Geographical Coverage 54 Poverty Alleviation 06 Interview with the President 30 Ecological Protection 40 Providing High-Quality Products 48 Platform for Employee 20 Pushing Forward Pipeline Development 55 Supporting Education Promoting Energy Saving and Delivering Considerate Services 08 Highlights in 2014 Network Construction 33 42 Emission Reduction 51 Local Staff Development 56 Volunteer Activities 43 Ensuring Stable Supply 10 Corporate Governance 21 Developing Alternative Energy 34 Response to Climate Change 51 Security in Overseas Operations 57 Contributions to Overseas 15 Communication with 23 Deepening International Communities Stakeholders Cooperation 60 Investor FAQs 64 Objectives and Plans 66 Performance Statistics 68 Approach to Reporting About PetroChina Core Business PetroChina Company Limited (PetroChina, hereinafter also referred Our to as “the Company”, “we” or “us”) was established on 5 November, Energize, Harmonize, Realize Upstream Oil and Gas Exploration, Development and Production 1999, upon the restructuring of China National Petroleum Mission Our upstream Corporation (CNPC). PetroChina was listed on the NYSE (ADS business includes PetroChina takes a leading position in domestic oil and gas exploration and code: PRT) and the HKEx (stock code: 00857) in April 2000 and on Our To be a world-class international the exploration, development business. We operate in a number of major oil and gas producing the Shanghai Stock Exchange (stock code: 601857) in November Vision energy company development and regions such as Daqing, Changqing, Xinjiang, Liaohe, Tarim and Sichuan. In 2007, respectively. production of crude 2014, we produced 945.5 million barrels of crude oil, 3,028.8 billion cubic feet of oil and natural gas. marketable natural gas, and 1,450.4 million barrels of oil and gas equivalent. PetroChina is one of the major oil and gas producers and Business Resources, Markets, distributors in China, ranking among the leading international Strategy Internationalization oil companies. It engages in a wide range of activities related to Refining and Marketing of Crude Oil and Oil Products oil and natural gas and provides sustainable energy for socio- Guidelines of Quality, Efficiency economic development. We pursue harmonious relationships We owned 8 ten-million-ton-level refining bases. In 2014 we processed 1010.6 Development and Sustainability between energy, the environment and the society. million barrels of crude oil, produced 92.671 million tons of oil products. We are operating over 20,000 gas stations covering 31 provinces (municipalities and Honesty, Innovation, Mid-Downstream autonomous regions) and the HongKong SAR of China, and undertook the supply Our Values Safety and Distinction Our midstream and of about 40% of China’s oil products. downstream business includes refining, transportation, Production, Transportation and Marketing of Petrochemical storage and Products marketing of crude oil and oil products, The Company is engaged in producing six categories of chemical products- as well as production synthetic resin, synthetic fiber and raw materials of synthetic fiber, synthetic and marketing of rubber, urea, organic and inorganic compounds with thousands of trademarked basic, derivative products. Our production capabilities of products such as ethylene, synthetic resin and other chemical and synthetic rubber ranked among the best in China. In 2014, we sold over 21 products; and million tons of chemical products, and produced 4.976 million tons of ethylene. transportation and Forbes Platts Energy BrandZ marketing of natural Top 250 global energy companies gas. Transportation of Natural Gas, Crude Oil and Oil Products, 10th in global top 2,000 enterprises 1st in Asian energy 8th in top 100 most valuable and Distribution of Natural Gas companies in overall ranking Chinese brands PetroChina is mainly responsible for transportation and marketing of natural 1st in Asian integrated Top 10 most trusted gas, and storage and transportation of crude oil and oil products. The Company oil and gas companies Chinese brands operated 77,000 km of pipelines in China, covering 29 provinces (municipalities and autonomous regions) and the HongKong SAR in China. Two employees were International International Business IR Magazine granted Incentive Award for The Jabung Block project Business Outstanding Engineers by of PetroChina International the International Scientific (Indonesia) was presented the We are engaged in oil Currently, we have established five international oil and gas cooperation zones Best IR by an energy company Exchange Foundation of China Special Contribution Award and gas exploration and in the Middle East, the Central Asia, the Asia-Pacific, the Americas and Africa, by the Indonesian Ministry of production in nearly and three oil and gas operation centers in Asia, Europe and the Americas. The Three employees were granted Energy and Mineral Resources in 30 countries and have expansion and growth of our international oil and gas cooperation has been Best IR by a mainland awards from the Sun Yueqi 2014 and was the only one from substantial in terms of size and scope, with operational quality improving greatly. Chinese company trade relations with Science and Technology Indonesia’s oil and gas industry. In 2014, overseas oil and gas equivalent production reached 147.2 million barrels. Education Fund more than 80 countries. 2 2014 Sustainability Report 2014 Sustainability Report 3 We sought to identify opportunities and challenges, and made progress in adversity. We continued to adhere to our principle of steady growth and our guidelines of quality, profitability and sustainable development. We accelerated our strategic transition from focusing on large-scale development to quality and Message from the Chairman profitability enhancement, thereby maintaining sound and stable development. The year 2014 saw a more complicated international economic We steadily promoted reform and innovation and continued to carry out the HSE system audit, and strengthened the development. We will accelerate business transformation amid environment and increasing downward pressure on the domestic boosted growth momentum and vitality. risk prevention and control system and our emergency response China’s economic “new normal”, and shift our development model economy, resulting in slower growth in demand in the oil and gas capability. In addition, we accelerated the implementation of from rapid development to sustainable and steady development. market. In particular, the international oil price has seen a big drop We expanded pilot projects to give greater operating autonomy to projects for energy conservation and emissions reduction. As a Furthermore, we will shift our focus from incremental investment to since July 2014, resulting in a sharp rise in the difficulties faced oilfield companies, and launched and implemented reform of our result, our HSE performance is generally stable and controllable. adjusting existing investments, optimizing new projects, promoting by production and operations, and posing increasing risks to our natural gas marketing system and the integration of downstream We made great efforts to develop a harmonious enterprise, giving innovation-driven development and improving the quality of staff. international businesses. In the face of growing pressures and businesses. We continued to improve our systems and mechanisms top priority to the overall development of our employees. To this We will benefit from the coordinated development of the upstream, challenges, we sought to identify opportunities and challenges, for corporate and business development. We implemented a end, we built platforms for employee development, promoted midstream and downstream sectors, instead of relying on the and made progress in adversity. We continued to adhere to our performance-based compensation scheme, reviewing employee local recruitment, safeguarded employee rights and interests, upstream sector. We will better fulfill our economic, environmental principle of steady growth and our guidelines of quality, profitability remuneration in accordance with corporate profitability to provide protected their physical and mental health, strengthened the and social responsibilities and continue to offer environmentally- and sustainable development. We accelerated our strategic incentives through performance appraisals. Through the active protection of staff working overseas, and actively improved their friendly and low-carbon energy, allowing us to contribute to transition from focusing on large-scale development to quality and introduction of social capital, we ensured the orderly development living conditions. We strengthened corporate governance and national energy security and socio-economic development. profitability enhancement, thereby maintaining sound and stable of joint venture and cooperation projects. By implementing the compliance management in accordance with the law and explored development. innovation-driven development strategy,
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