Mutual Benefit and WinWin Cooperation Mr Jia Yong

Mutual Benefit and Win-Win Cooperation Mr. Jia Yong Chairman of CNODC/CNPC (Sudan) Khartoum, Sudan 18 th February 2016 Sudan Investment Forum 1

China National Petroleum Corporation (CNPC) is an integrated international energy company, with businesses covering oil and gas operations, oilfield services, engineering and construction, equipment manufacturing and new energy development. Increasing resources Expanding markets Sudan Investment Forum Strategy Seeking a greater international role 2

We strive for harmonious relationships between Sudan Investment Forum 3

CNPC’s oversea investment started from 1993, now CNPC is operating and participating in 93 oil and gas assets and interests in 37 countries. America l l l l Venezuela Ecuador Peru Canada Columbia Brazil Costa Rica Africa Asia-Pacific l Central Asia& Europe l l l Sudan South Sudan Algeria Niger Chad Nigeria Tunisia Mozambique Middle East l l l l Iraq Iran Syria Oman Qatar UAE l l l l Sudan Investment Forum Kazakhstan Turkmenistan Tadzhikistan Kyrgyzstan Afghanistan Uzbekistan Azerbaijan Russia England France l l l Indonesia Australia Singapore Thailand Myanmar Mongolia Japan 4

CNPC In Sudan: 6 projects Block 1/2/4 N： Khartoum Refinery Capacity: 35 million barrels/y CNPC 40% Capacity： 55 K BOPD Block 6： Khartoum Petrochemical CNPCI 95% CNPC 95% Capacity: 20 k tons/y Capacity： 55 K BOPD Polypropylene PDOC： Petrochemical Trade CNPC 16. 4% CNPC 100% Capacity： 300 k barrels/d Capacity: sale 100 k cubic meters/y Sudan Investment Forum 5

Increasing Gov. Revenues and Accelerating Economy Growth 30 Oil Rents of Sudan (% of GDP) 25 20 15 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Oil rents are the difference between the value of crude oil production at world prices and total costs of production. Sources: World Bank, 2015 Sudan Investment Forum 6

In the past 20 years, CNPC has invested more than USD 13 billion accumulatively, together with partners successfully discovered and developed oilfields of Blocks 1/2/4, Block 3/7 and Block 6 that made Sudan become to be an oil-exporting country from an oil-importing country. Sudan Investment Forum 7

Khartoum Refinery (KRC) • A comprehensive platform to display the technical and management advantage as the first oversea refinery of CNPC. • Started construction in August 1998 and commissioned on May 16, 2000. • Capacity increased to 35 million barrels per year after the second-stage expansion. • Promoted petrochemical development. Sudan Investment Forum 8

600 500 400 300 Thousand barrels per day Oil/fuel Self-independence Sudan Oil Consumption and Production Sudan consumption Sudan production 200 100 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sources: U. S. Energy Information Administration (EIA) Refined Oil Market Shares 100% gasoline Sudan Investment Forum 60% 50% 60% diesel jet fuel LPG 80% 89% heating oil coke 9

Pipeline Transportation • The pipeline with total length of 3700 km was constructed. Sudan Investment Forum 10

Human Resource Development Upholding the people-oriented concept, we protect employees’ legal rights and interests, build platform for employees development, and promote employee localization and diversification. Sudan Investment Forum 11

Community Development We are committed to sharing our business achievements and development opportunities with local communities, and attach great importance to activities promoting public welfare and social progress. Sudan Investment Forum 12

Supporting Education We aim to boost local development capabilities by providing funds and support for education. Sudan Investment Forum 13

Environmental protection We regard providing clean energy, minimizing environmental impact and reducing emissions as the strategic foundation for the Company’s sustainable development. Sudan Investment Forum 14

Successful experience • Stable investment policies and environment • Long-term cooperative relationship • CNPC integrated advantage Sudan Investment Forum 15

Crude Oil Price from Y 2014 to January Current challenges 140 120 • prolonged low oil price 100 80 60 • post-development of the oil fields 40 20 • exploration discovery 20 14 / 20 1/2 14 /3 20 /2 14 /5 20 /2 14 /7 20 /2 14 20 /9/2 14 /1 1 20 /2 15 / 20 1/2 15 /3 20 /2 15 /5 20 /2 15 /7 20 /2 15 20 /9/2 15 /1 1 20 /2 16 /1 /2 0 100 30. 2 27. 8 87. 87 86. 87 90 30. 1 85. 29 30. 4 85. 15 35 29. 2 25 85. 09 80 15 2011 2012 2013 WC Nature decline rate Sudan Investment Forum 2014 2015 Brent (Dtd) Water cut and annual decline rate for Block 6 80 60 40 2011 46. 9 45. 5 19. 1 36. 8 14 53. 8 35 28. 6 40 61. 8 29 30 20 10 2012 2013 Water cut(%) 2014 0 2015 Natural decline rate(%) 16 Annual natural decline rate(%) water cut (%) Water cut and annual nature decline rate for Block 124 Annual nature decline rate(%) Water cut(%) WTI

Potential exploration blocks in Sudan 9 11 Central Africa Shear Zone 8 17 6 The Meso-Cenozoic rift basin 7 4 2 1 3 The boundary Between Sudan and South Sudan The Paleozoic cratonic basin The Cenozoic Red Sea Basin Sudan Investment Forum 17

China’s “the Belt and Road Initiative” will promote new breakthroughs of the energy cooperation in Africa. CNPC will endeavor to be to make more contributions to boost the economic development of the host countries together with the co-partners in a win-win basis. Sudan Investment Forum 18

Thanks Sudan Investment Forum 19