Chairman of the Board of Directors of the Chinese oil and gas corporation China National Petroleum Corporation (CNPC), Wang Yilin, spoke about the prospects of his company’s joint projects with Russia in a long interview with the Rossiya-24 TV channel.

“The Power of Siberia” will begin to close in June

Next month, CNPC, together with Gazprom, will begin construction of the border part of the Power of Siberia gas pipeline. By the end of 2016, China plans to build 30 to 80 kilometers of the highway on its territory, Wang Yilin said.

“both in Russia and in China. According to our schedule, the parties will begin construction of the border zone in June of this year. We are talking about an underwater crossing of the Amur River. As for the gas pipeline section in China, this year we plan to complete the construction of 30 to 80 kilometers of gas pipeline,” Wang said.

The construction of the Power of Siberia gas transmission system is underway in accordance with the contract for the export of Russian gas to China, concluded in May 2014 by Gazprom and CNPC. The first gas supplies are planned for 2018. The throughput capacity of the Power of Siberia will reach 38 billion cubic meters per year after 2031. The total length of the gas pipeline will be about 4 thousand kilometers.

CNPC wants to become a strategic partner of Rosneft

CNPC is also interested in increasing its share in Rosneft’s share capital through the upcoming... However, in this case, the Chinese state corporation would like to receive the right to participate in management. The head of CNPC recalled that the company already owns a small stake in Rosneft, which was acquired in 2006 as part of an IPO.

“The package is relatively small. At the same time, when a proposal from Rosneft for the privatization of shares is formed, we will consider it in detail, since the partnership with Rosneft is of a strategic nature,” said Wang Yilin. – On our part there is interest, and we will study the possibility of studying the share of the shareholder presence in Rosneft. If our share increases, we would like to receive the right to participate in the management of the company in full accordance with the acquired package. We expect that the format of participation and the scope of powers will be reflected in Rosneft’s proposal.”

Let us recall that the head of the Russian Ministry of Finance, Anton Siluanov, announced last week that the privatization of a 19.5% stake in Rosneft is envisaged in the second half of 2016. White&Case has already been selected as a legal consultant for this transaction. The state, through Rosneftegaz, owns 69.5% of the shares of the state-owned company.

Working conditions on the Russian shelf are unattractive

At the same time, CNPC continues negotiations with Rosneft and Gazprom Neft regarding participation in projects for the development of fields on the Russian shelf. However, according to Wang Yilin, the conditions proposed by Russian companies are too risky for a foreign investor. Therefore, the Chinese company is in no hurry to enter into specific offshore projects.

China National Petroleum Corporation (CNPC)

China National Petroleum Company(CNPC) is a Chinese state-owned oil company.

In 1988, the State Council dissolved China's Ministry of Petroleum Industry and transformed it into the National Petroleum Corporation (CNPC).

Organization management:
Management:
Jiang Jiemin- The president
Zhou Jiping- vice president
Duan Wende- vice president
Wang Yilin- vice president
Zeng Yukang- vice president
Wang Fucheng- vice president
Li Xinhua- vice president
Liao Yongyuan- vice president
Wang Guoliang- head of financial department
Chen Ming Chief- head of the supervisory department
Xu Wenrong- President `s assistant
Wang Dongjin- President `s assistant

Key financial indicators:
Revenue for 2006 was 893.6 billion yuan, net profit was 105.8 billion yuan.

About the organization:
Oil production: 2.69 million barrels of crude oil per day.
Gas production: 4.6 billion cubic feet/day.
Oil reserves: 2.69 billion tons.
Gas reserves: 2215.9 billion cubic meters.
Oil and gas production in China accounts for 58% and 75.5% of the total, respectively.
In addition to China, CNPC has projects in Azerbaijan, Peru, Venezuela, Oman, Sudan, Turkmenistan, etc. In 1999, PetroChina was spun off as part of CNPC. In 2004, the company began construction of an oil pipeline from the Middle East to the Xinjiang Uyghur Autonomous Region of China. In 2006, CNPC acquired the Canadian company PetroKazakhstan, which produces hydrocarbons in Kazakhstan, for $4.18 billion (this became the largest takeover of a foreign company by a Chinese company in history).
In 2005, CNPC produced 105.95 million tons of crude oil (an increase of 1.3% compared to the previous period) and 36.7 billion cubic meters of gas (an increase of 27.9%) from year to year.
The company's market share in China is 60% for crude oil, 73.4% for natural gas and 41% for petroleum products.

Contacts:
Address: 6, Liupukang Street, Xicheng Dist., Beijing, P.R. China, 100724
Phone: 86 10 6209 4114
Fax: 86 10 6209 5148

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

China National Petroleum Corporation(whale. 中国石油天然气集团公司 ; official English name China National Petroleum Corporation, CNPC) is the largest Chinese oil and gas company. Headquarters - in Beijing. The company ranks 4th in the Fortune Global 500 (2014).

CNPC was founded on September 17, 1988, based on the production assets of the disbanded Ministry of Petroleum Industry of the People's Republic of China. The main task of CNPC is to organize the exploration and development of oil and gas fields in the country. 100% of the company's capital belongs to the state.

Activity

CNPC's recoverable reserves amount to 1.65 billion tons of oil, 1.95 trillion cubic meters. m of gas. In 2005, CNPC produced 105.95 million tons of crude oil (an increase of 1.3% compared to the previous period) and 36.7 billion m³ of gas (an increase of 27.9%). The company's market share in China is 60% for crude oil, 73.4% for natural gas and 41% for petroleum products. The company's revenue in 2005 was $86 billion; profit - 178 billion yuan. Revenue in 2014 - $432.0 billion.

In 2004, the company began construction of an oil pipeline from the Middle East to the Xinjiang Uyghur Autonomous Region of China. In 2006, CNPC acquired a stake in the Kazakh company PetroKazakhstan, which is engaged in the production and processing of hydrocarbons in Kazakhstan, for $4.18 billion (this became the largest takeover of a foreign company by a Chinese company in history). In 2007, CNPC became the operator of the Turkmen project Bagtyyarlyk.

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Excerpt characterizing the China National Petroleum Corporation

No one was visible, no one came out. Feeling uncomfortable, coming uninvited, I still decided to try and approached the crack. Again, nothing happened... There was no special protection or any other surprises. Everything remained majestic and calm, as from the beginning of time... And who was there to defend against? Only from people as gifted as the owners themselves?.. I suddenly shuddered - but another similar “Caraffa” could have appeared, who would have been gifted to some extent, and would have just as easily “found” them?! ..
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It was very quiet and very cozy in the strange cave... The only thing that was a little alarming was that the feeling of someone else’s observation was growing stronger and stronger. But it wasn't unpleasant. It’s just a parent’s caring gaze behind an unintelligent baby...
The corridor along which I walked began to expand, turning into a huge high stone hall, along the edges of which there were simple stone seats that looked like long benches that someone had carved right into the rock. And in the middle of this strange hall stood a stone pedestal, on which a huge diamond crystal “burned” with all the colors of the rainbow... It sparkled and shimmered, blinding with multi-colored flashes, and looked like a small sun, for some reason suddenly hidden by someone in a stone cave .
I came closer - the crystal shone brighter. It was very beautiful, but nothing more, and did not evoke any delight or connection to something “great”. The crystal was material, simply incredibly large and magnificent. But that's all. It was not something mystical or significant, but just extraordinarily beautiful. But I still couldn’t understand why this seemingly simple “stone” reacted to the approach of a person? Could it be possible that he was somehow “turned on” by human warmth?
“You’re absolutely right, Isidora...” suddenly a gentle voice was heard. - No wonder the Fathers value you!
Startled in surprise, I turned around, immediately exclaiming joyfully - North was standing next to me! He was still friendly and warm, just a little sad. Like a gentle sun that was suddenly covered by a random cloud...
- Hello North! Sorry for coming uninvited. I called you, but you didn’t show up... Then I decided to try to find you myself. Tell me what do your words mean? Where am I right?
He approached the crystal - it shone even brighter. The light literally blinded me, making it impossible to look at it. Rosneft invited the Chinese to become shareholders of one of the country's largest oil fields - Vankor, located in the Krasnoyarsk Territory.

President Vladimir Putin announced this on September 1 of this year as part of the ceremony to begin construction of the Power of Siberia gas pipeline, through which Russian gas from East Siberian fields will be supplied to China. “Mr. Sechin said that he has made you an offer to enter as a shareholder in one of our largest oil production enterprises in northern Russia,” he said in a conversation with Deputy Prime Minister of the State Council of China Zhang Gaoli, adding that the state will support these plans.

CNPC (China National Petroleum Company, China National Petroleum Corporation) proposed to enter the capital of Vankorneft CJSC. She may be offered 10-20% in the Vankor operator. Analysts believe that the cost of this package could be $1-2 billion. Chinese investments will help increase production at the field from the current 22 million tons per year to the target 34 million. “We love China,” Igor Sechin once said, and he can understand. The Chinese corporation has a strong relationship with Rosneft. Back in 2004, when it needed money to purchase YUKOS assets, the company found it from CNPC, which gave it $6 billion for future oil supplies. The companies now have a long-term contract concluded in 2009 for the supply of 15 million tons of oil per year until 2030. In addition, there is an additional agreement signed in 2013 for the supply of 365 million tons over 25 years, under the terms of which Rosneft receives an advance payment of $70 billion.

CNPC is also Gazprom's counterparty under the gas contract and the Power of Siberia project. Let us recall that in May of this year, the gas giant and CNPC entered into a contract for a period of 30 years, which provides for the export of 38 billion cubic meters of Russian gas per year. The total amount of the contract is about $400 billion. Once again, the Chinese side will give the Russian partner an advance of $25 billion for the construction of the gas pipeline. This will be the second Russian-Chinese pipeline. On January 1, 2011, a cross-border oil pipeline was put into operation - a branch from the Eastern Siberia - Pacific Ocean pipeline system to the Middle Kingdom. CNPC has two more transport projects in the territory of the former USSR - the Atasu - Alashankou oil pipeline from Kazakhstan and the Central Asia - China gas pipeline, which runs through the territory of Turkmenistan, Uzbekistan and the same Kazakhstan. Currently, the gas pipeline can pump up to 30 billion cubic meters of gas per year, but China wants to increase the pipeline’s capacity to 55 billion cubic meters. Another gas pipeline could also be built from Russia, which would pass through Western Siberia, Mongolia or Kazakhstan. CNPC also purchases some equipment for its pipelines from Russia. Thus, in May 2012, CNPC (or rather its subsidiary China Petroleum Engineering & Construction Corporation) entered into a contract with the Russian ChelPipe Group for the supply of valves for the construction of oil pipelines connecting China with Turkmenistan and Uzbekistan.

CNPC can afford to give tens of billions of dollars in advance to its Russian partners. This is a giant transnational corporation, the scale of its operations significantly exceeds that demonstrated, for example, by Rosneft. CNPC invests in oil and gas projects in more than 30 countries (in China itself it accounts for 53% and 74% of total oil and natural gas production, respectively), and in 63 countries it provides maintenance and engineering services at oil and gas facilities. The corporation owns 26 oil refineries in China, which can process up to 150 million tons of oil per year. There is also a huge sales network, a network of pipelines, factories for the production of equipment for the oil and gas industry and its own bank. In total, CNPC employs more than 1.6 million people! This is more than one and a half times the number of people employed in the entire mining segment in Russia. According to financial indicators, CNPC in 2013 was in fifth place in the ranking of the world's largest corporations Global Fortune 500. The company's revenue amounted to $408.6 billion (for comparison, Rosneft's revenue last year was at $140 billion). The net profit, however, of the Chinese was not so impressive - “only” $18.2 billion, which is significantly lower than that of Royal Dutch Shell ($26.6 billion) and ExxonMobil ($44. 9 billion). But this is explained by the ongoing investment hyperactivity of the Chinese corporation, exploring more and more countries and continuing to buy assets. Moreover, CNPC is already ahead in terms of assets ($547.2 billion) and Shell ($360.3 billion) and ExxonMobil ($333.8 billion).

But the Chinese are still lagging behind in terms of hydrocarbon production. In the Forbes ranking of the largest oil and gas companies in the world at the end of last year, PetroChina (a subsidiary of CNPC, in which oil and gas assets are consolidated and whose shares are traded on the stock exchange) ranks seventh with a result of 3.9 million barrels of oil equivalent per day. The first number - Saudi Aramco - produces 9.9 million barrels. Russia's Gazprom and Rosneft occupy second and fifth places with figures of 8.1 million barrels and 4.6 million barrels. Exxon and Shell were also ahead of the Chinese. So CNPC has room to improve. The company’s possible entry into Vankorneft fits well with the expansionist policy of the Chinese corporation, as it will allow it to increase its reserves and production figures.

CNPC was destined to be a giant from birth. The company was actually created on the basis of the entire Ministry of Petroleum Industry of the People's Republic of China. On September 17, 1988, as the Chinese themselves write, “relying on the main resources and assets of the Ministry of Petroleum Industry,” CNPC was created. Just five years later, the corporation entered the international market by signing a service contract with the government of the Peruvian Republic to manage the Talara field. This was followed by an oil contract with the Sudanese government, then in June 1997 the company bought a 60.3% stake in the Kazakh oil company Aktobe, and the following month CNPC won a contract to produce oil from two fields in Venezuela. In 1998, a reorganization began, within the framework of which, in particular, PetroChina was formed. Today, only one question can be relevant for CNPC: when will extensive growth end? The finish line is not even visible yet.

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Turnover: $165.49 billion

Net profit: $10.27 billion

Assets: $325.384 billion

Number of employees: 1,649,992 people

China National Petroleum Corporation (CNPC)(simplified Chinese: 中国石油天然气集团公司; traditional Chinese: 中国石油天然气集团公司, pinyin: Zhongguo Shíyóu Tiānránqì Jítuán Gōng sī) State Fuel Corporation, the largest operator of oil and gas companies in the PRC. Headquarters in Beijing. CNPC, the parent of PetroChina, is the second most valuable company in the world by market capitalization as of June 2010.

Activity

CNPC is the state-owned parent company of listed PetroChina, the company established on November 5, 1999 as part of the restructuring of CNPC. In the restructuring, CNPC is bringing into PetroChina the majority of the assets and liabilities associated with CNPC's exploration and production, refining and marketing, chemicals and natural gas activities. CNPC and PetroChina have overseas assets through joint ventures, CNPC is 50% owned by PetroChina. CNPC can be traced back to its beginnings as a government department of the PRC government. In 1949, the Chinese government formed the Fuel Industry Ministry dedicated to fuel management. In January 1952, the Fuel Ministry was created to manage the country's oil exploration and production, called the General Petroleum Administration Bureau. In July 1955, a new ministry emerged to replace the Ministry of Industry, it was called the Ministry of Oil. From 1955 to 1969, about 4 oil fields were discovered in 4 areas in Qinghai, Heilongjiang, Bohai Bay and Songliao Basin. CNPC was eventually created on September 17, 1988, when the government decided to disband the Ministry of Petroleum and created a state-owned company to handle all oil activities in China. 1993 marks the start of CNPC's international operations. CNPC has signed a service contract with the Peruvian government to manage the Talara field. This was followed by an oil contract with the Government of Sudan to manage Blocks 1/2/4 Muglad fields. Then in June 1997 the company bought a 60.3% stake in the Aktobe Kazakhstan oil company, and the following month CNPC won a contract to produce oil from the Intercampo and East Caracoles fields in Venezuela. Subsequently, in July 1998, the company was restructured by the government in accordance with the upstream and downstream principle of the oil industry. In August 2005, it was announced that CNPC had agreed to buy Alberta, the headquarters of PetroKazakhstan, for $4.18 billion. This will be the largest overseas purchase by a Chinese company. The acquisition was successfully implemented on October 26, 2005 after a Canadian court rejected LUKoil's attempt to block the sale. . In 2006, 67% of the shares were sold from parent company PetroChina. On November 5, 2007, HK CNPC's subsidiary PetroChina was also listed as a stake in the Shanghai Stock Exchange.