China National Petroleum Corporation (CNPC)

CHINA NATIONAL PETROLEUM CORPORATION (CNPC)
ww.cnpc.com.cn

Company Information
China National Petroleum Corporation (CNPC) is China’s largest oil and gas producer and supplier, and is active in nearly seventy countries worldwide.[i]

Contact Information
9 Dongzhimen North Street, Dongcheng District, Beijing, P.R. China, 100007

T: +86 10 6209 4114
F: +86 10 6209 4205
E-mail: admin_eng@nullcnpc.com.cn

Turkmenistan
T: +993 1239 4429
F: +993 1248 8716
cnpcoffice_tm@nullcnpc.com.cn

History in Turkmenistan
In 2002, CNPC and the Turkmenneft State Concern signed an EOR contract for the Gumdak Oilfield in western Turkmenistan. Under the contract, CNPC had a 100 percent stake in the project for a five-year period, during which time production was increased, as a result of geological research and appraisals conducted by the company.[ii]

In 2007, CNPC signed a Production Sharing Agreement with the Turkmen State Agency for Management and Use of Hydrocarbon Resources to explore and develop gas fields on the right bank of the Amu Darya River. At the same time, CNPC signed a natural gas sale-and-purchase agreement with Turkmengaz. Under these agreements, Turkmenistan is obligated to export an annual 3 bn cubic meters of gas to China for 30 years. In 2009, CNPC opened the No.1 Gas Processing Plant as part of the Amu Darya project.[iii] In September 2010, CNPC reported the discovery of a major gas field in Block B of the Amu Darya project.[iv]

Current Scope of Operations
In July 2008, Turkmenistan and China launched construction of the Central Asia-China Gas Pipeline, which traverses 1,833 km from the Turkmenistan-Uzbekistan border, through Uzbekistan and Kazakhstan, and ending in China’s Xinjian Uygur Autonomous region. From there, it is connected to the Second West-East Gas Pipeline. CNPC constructed the pipeline, and provided “financing and technical know-how for the gas processing and purification facilities, pumping and compression stations and boosters.”[v] The primary line became operational in December 2009, as scheduled. CNPC reports that the pipeline will have an annual delivery capacity of 30 billion cubic meters.[vi] CNPC reported in December 2011 that it expected the transmission rate for the pipeline to reach 30bcm by June 2012.[vii]

CNPC has also offered to do a feasibility study for a proposed Turkmenistan-Afghanistan-Tajikistan-China pipeline and is expected to begin assessing conditions in Afghanistan in summer 2012.[viii] Additionally, in December 2009, it was reported that CNPC was one of the companies that had won a prized gas services contract to develop the South Yolotan Field.[ix] However, as of this printing, CNPC has not provided any information about this contract on its website.

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[i] CNPC, About CNPChttp://www.cnpc.com.cn/en/aboutcnpc/. Accessed February 9, 2011.

[iii] CNPC, CNPC in Turkmenistan.

[iv] Reuters, “CNPC Reports Major Gas Find in Turkmenistan,” 28 Sept. 2010,http://af.reuters.com/article/energyOilNews/idAFTOE68R02I20100928. Accessed February 9, 2011.

[v] http://www.newscentralasia.net/print/160.html. Accessed September 23, 2008.

[vi] CNPC, Central Asia-China Gas Pipeline Put into Operation, 16 Dec. 2009, http://www.cnpc.com.cn/en/press/newsreleases/2009/fcb86af0-27d5-46d5-917a-48125a2ef8e0.htm. Accessed October 10, 2010.

[vii] Platts, “China’s CNPC Says Central Asia Gas Pipeline Rate to Hit 30bcm/year by Jun 2012,”Platts Singapore, December 16, 2011;http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/7882712

[viii] Vladimir Socor, “China Proposes Turkmenistan-China Pipeline through Northern Afghanistan,”The Jamestown Foundation, June 19, 2012; http://www.jamestown.org/single/?no_cache=1&tx_ttnews%5Btt_news%5D=39510

[ix] Stephen Bierman & Anna Shiryaevakaya, “CNPC, LG Win $9.7 billion of Turkmen Gas Contracts,”Bloomberg, 30 Dec. 2009, http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a41E4ecIpaTY. Accessed February 9, 2011.