China National Petroleum Corporation

China National Petroleum Corporation

Native name	中国石油天然气集团有限公司
Company type	State-owned enterprise
Industry	Oil and gas
Founded	1988 (1988)
Headquarters	Dongcheng District, Beijing , China
Number of locations	Increase 22,612 (service stations) (2019)
Area served	Worldwide
Key people	Dai Houliang (chairman) Hou Qijun (president)
Products	Petroleum, natural gas, and other petrochemicals
Production output	Decrease 178.64 million MT crude oil (2020) Increase 160.35 billion CM natural gas (2020)
Revenue	Increase Template:CNY (2022)
Operating income	Increase Template:CNY (2022)
Net income	Increase Template:CNY (2022)
Total assets	Increase Template:CNY (2022)
Total equity	Increase Template:CNY (2022)
Number of employees	1,090,345 (2022)
Subsidiaries	PetroChina
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The China National Petroleum Corporation (CNPC; ) stands as a leading state-owned oil and gas enterprise in China and ranks among the largest integrated energy conglomerates worldwide. Its headquarters are situated in Beijing’s Dongcheng District, and in 2022, CNPC secured the fourth position on the Fortune Global 500 list by revenue.

Corporate structure

As a government-owned entity, CNPC serves as the parent company of the publicly traded firm PetroChina, which was formed on November 5, 1999, during CNPC’s organizational restructuring. The majority of CNPC’s assets and liabilities associated with hydrocarbon exploration, refining, marketing, chemical production, and natural gas operations were transferred to PetroChina. International ventures are managed collaboratively by CNPC and PetroChina through the CNPC Exploration & Development Company (CNODC), which is evenly owned by PetroChina.

In March 2014, CNPC’s chairman at the time, Zhou Jiping, revealed intentions to open six business divisions for private sector investment.

Additionally, CNPC partners with UOP LLC to advance various biofuel technologies and projects within China.

History

CNPC traces its origins back to 1949 as a governmental department that evolved from the Fuel Industry Ministry into the Ministry of Petroleum by 1955. Significant oil discoveries occurred between 1955 and 1969 in regions including Qinghai, Heilongjiang (Daqing oilfield), Bohai Bay, and the Songliao basin. The corporation was officially founded on September 17, 1988, replacing the Ministry of Petroleum to oversee China’s petroleum sector.

Its international presence began in 1993 with a service contract in Peru. By 1997, CNPC had acquired a 40% interest in Sudan’s Greater Nile Petroleum Operating Company and purchased a controlling stake in Kazakhstan's Aktobe Oil Company. The company also secured oil agreements in Venezuela.

In August 2005, CNPC agreed to purchase Alberta-based PetroKazakhstan for $4.18 billion USD—the largest overseas acquisition by a Chinese firm at that time—finalized after resolving a legal dispute with LUKoil. Subsequently, in 2006, PetroChina acquired a 67% stake in PetroKazakhstan from CNPC.

A corporate restructuring took place in July 1998 that divided CNPC into upstream and downstream operations while transferring most domestic assets into PetroChina. On November 5, 2007, PetroChina made its debut on the Shanghai Stock Exchange as an A-share company.

Fueled by China's growing energy needs and government policies encouraging overseas expansion, CNPC extended its operations into regions presenting higher political risks.

In 2012, CNPC’s subsidiary Bank of Kunlun faced sanctions from the United States due to financial connections with Iran’s Islamic Revolutionary Guard Corps.

In July 2013, CNPC entered into a $4.2 billion agreement with Eni for a 20% interest in Mozambique's offshore natural gas development.

Mid-2014 saw leadership changes amid an anti-corruption investigation impacting CNPC’s Canadian activities.

In February 2022, CNPC signed a contract with Russia’s Gazprom to receive an annual supply of 10 billion cubic meters of gas via the Far Eastern route.

Despite the 2022 Russian invasion of Ukraine, CNPC maintained its operations in Russia and was listed by Ukraine as an International Sponsors of War entity due to its payment of taxes to Russian authorities.

In July 2025, CNPC inaugurated an international communication center aimed at enhancing the global promotion of China’s petroleum industry narrative.

Operations

CNPC possesses confirmed oil equivalent reserves. In 2007, the company extracted 54 billion cubic meters of natural gas. It manages 30 overseas exploration and production ventures across Azerbaijan, Canada, Iran, Indonesia, Myanmar, Oman, Peru, Sudan, Niger, Thailand, Turkmenistan, and Venezuela. Many of these exploration activities are carried out by its wholly owned drilling arm, the Great Wall Drilling Company (GWDC).

In 2018, CNPC revealed plans to build natural gas storage facilities in northern Henan province with a combined capacity of 55.6 billion cubic meters to ease winter supply constraints. This project aligns with China’s larger initiative to replace coal-fired boilers with cleaner natural gas alternatives, tackling pollution concerns and improving gas transportation logistics.

Africa

CNPC was the pioneer Chinese enterprise to invest in Africa, beginning in 1996 with the redevelopment of Sudanese oil fields that Chevron had abandoned due to civil unrest.

South Sudan

From 1997 over three years, the Great Wall Drilling Company invested $700 million in drilling 57 wells in Sudan. In 2010, CNPC was awarded a $75.5 million contract to construct five oil rigs for Sudan’s Petroleum Ministry.

After South Sudan gained independence in 2011, CNPC maintained substantial stakes in oil fields within the new nation and emerged as a key investor through consortiums such as Petrodar.

When civil war erupted in South Sudan in December 2013, Chinese decision-makers faced the challenge of continuing operations amid conflict. CNPC opted to retain a small on-site presence, enabling ongoing oil production despite significant financial setbacks caused by elevated transport costs and depressed global oil prices. This approach supported the stability of South Sudan’s oil industry and reinforced China’s diplomatic influence by contributing to economic steadiness during turmoil.

Chad

As of 2023, CNPC operates oil fields in Chad through a partnership with a Swiss firm.

Mozambique

CNPC holds a 20% equity interest in two natural gas initiatives in Mozambique as of 2023.

Niger

In Niger, CNPC co-manages a refinery alongside the government and oversees the nation’s sole active oil field.

Afghanistan

In December 2011, Afghanistan entered into a landmark agreement with CNPC to develop oil blocks in the Amu Darya basin, encompassing drilling and refinery projects in Sar-e Pol and Faryab provinces. This marked Afghanistan’s first international oil production deal in decades. However, CNPC halted operations following the Taliban’s return to power.

Kazakhstan

CNPC stands as a major Chinese petroleum investor in Kazakhstan, especially after acquiring PetroKazakhstan from Alberta for $4.18 billion. To mitigate political concerns, CNPC divested a minority share to KazMunaiGaz, Kazakhstan’s national oil company.

By June 2023, CNPC had secured full backing from Samruk-Kazyna for expanding Kazakhstan’s oil and gas pipeline infrastructure and building a sour gas processing facility at the Kashagan offshore field. The company also completed upgrades to the Shymkent refinery in August 2023, strengthening China’s access to Kazakh crude supplies.

Pakistan

Great Wall Drilling Company (GWDC) operated in Pakistan until 2008 when its assets were transferred to Chuanqing Drilling Engineering Company Limited (CCDC), another subsidiary under CNPC.

Uzbekistan

In 2006, CNPC partnered with a multinational consortium including the state-owned Uzbekneftegaz, LUKoil Overseas, Petronas, and Korea National Oil Corporation to jointly explore and develop hydrocarbon resources in the Aral Sea region.

China

Construction of a pipeline connecting the Middle East to Xinjiang province was initiated by CNPC in October 2004.

In June 2023, CNPC secured a 27-year agreement with QatarEnergy to import 4 million metric tons of LNG annually, marking Qatar's second significant contract with a Chinese energy company within a year. Prior to this, in November 2022, Sinopec had signed a comparable deal with QatarEnergy. Both CNPC and Sinopec hold equity stakes in the eastern expansion of Qatar’s North Field, which accounts for approximately 5% of an 8 million metric ton LNG train.

June 2023 also saw CNPC commence a 457-day drilling operation in the Taklamakan Desert, targeting depths of up to 10,000 meters for both scientific investigation and hydrocarbon exploration. Further, in August 2023, CNPC launched ultra-deepwater drilling activities aimed at enhancing China’s domestic oil output and decreasing dependency on foreign sources.

Russia

A landmark $400 billion agreement was finalized in May 2014 between Russia's Gazprom and CNPC after ten years of negotiations. Signed in Shanghai, this 30-year contract plans for an annual supply of roughly 38 billion cubic meters of natural gas starting from 2018 to support China's expanding energy needs.

New Zealand

CNPC's operations in New Zealand were conducted through CCDC (NZ) Drilling, which managed a single triple stand DC rig known as Rig 43. Beginning in late 2012, the company undertook workover and drilling activities targeting "tight gas" reserves in the Kapuni gas fields. By August 2013, Rig 43 had completed a four-well program for STOS (Shell Todd Oil Services) and subsequently drilled a well for Tag Oil at Cheal C. After legal challenges delayed additional operations, CNPC concluded its drilling projects in New Zealand by early 2014, dismantling Rig 43 and relocating it abroad.

Malaysia

China Petroleum Pipeline Engineering, a subsidiary of CNPC, served as the lead contractor on two pipeline initiatives within Malaysia. These projects encountered allegations of corruption and were halted by Prime Minister Mahathir Mohamed's seventh administration in 2018; however, the company denied any misconduct. In July 2019, Malaysian authorities confiscated $243.5 million from the firm as compensation for pipelines that were paid for but left incomplete, transferring these funds to a government-owned entity.

Sri Lanka

Since 1997, CNPC’s affiliate China Huanqiu Contracting & Engineering Corporation has been active in Sri Lanka. It was among the initial firms contributing to the development of the Hambantota International Port, constructing refueling infrastructure and oil storage facilities following a 2005 bilateral agreement aimed at encouraging Chinese involvement in port projects.

Iraq

CNPC commenced development of the Ahdab oil field located in Wasit Governorate in March 2009. Containing approximately one billion barrels of reserves, this project marked CNPC as the first major foreign investor in Iraq’s oil sector. The contract represented a renegotiation of a prior agreement made between China and Iraq in 1997. Despite facing security challenges and local disputes, Ahdab primarily functioned as CNPC's strategic entry into Iraq’s market, although its profit margin was projected at just around 1%.

Following Ahdab, CNPC won a production contract during the 2009/2010 Iraqi oil services tender to develop the larger Rumaila field alongside joint venture partner BP. Rumaila is estimated to hold substantial reserves with production expected to rise by approximately 10% by late 2010 under this BP/CNPC partnership. Additionally, CNPC led a consortium including TotalEnergies and Petronas for developing the southern Iraqi Halfaya field, which contains significant oil deposits.

In August 2023, CNPC Daqing Drilling Engineering Co secured an EPC contract worth $194 million to drill wells at Rumaila using two rigs; details on the number of wells were not disclosed.

By January 2024, CNPC assumed operational control over the West Qurna 1 oilfield from ExxonMobil. Situated northwest of Basra, West Qurna 1 produces over 25 million tonnes of crude oil annually.

Iran

Following the departure of European energy corporations such as Shell Oil and Repsol from Iran due to international sanctions, CNPC broadened its activities within Iranian oil fields. Together with Sinopec, CNPC took part in several initiatives aimed at advancing Iran's oil and gas sectors. By 2011, CNPC was engaged in developing the historic Masjed Soleyman Oil Field, Iran’s oldest, through a $200 million contract with NIOC. Production levels at this field were expected to increase from per day to after the initial phase, and further rise to upon completion of the second phase.

In August 2018, following TotalEnergies’ exit from the $5 billion South Pars gas field project due to US sanctions, CNPC raised its ownership share from 30% to 80.1%. Nonetheless, by October 2019, CNPC withdrew from the project amid persistent US sanctions, a move confirmed by Oil Minister Bijan Zangeneh.

Syria

CNPC collaborated with Indian state-owned oil company ONGC to establish a joint venture that acquired minority stakes ranging from 33.3% to 39% in several aging Syrian oil and gas assets. This partnership represented a notable strategic alliance between two state-owned enterprises that are typically competitors on the global stage.

Qatar

In June 2023, CNPC entered into a 27-year contract with QatarEnergy to receive an annual supply of 4 million metric tons of LNG. Additionally, CNPC holds approximately a 5% equity interest in the eastern expansion of Qatar’s North Field, corresponding to about 5% of an LNG train with an annual capacity of 8 million metric tons.

Corruption allegations

In September 2013, Jiang Jiemin, who formerly chaired PetroChina (a CNPC subsidiary), was dismissed from his role at the State-owned Assets Supervision and Administration Commission of the State Council and subjected to an investigation for corruption and abuse of authority alongside four senior oil executives. Jiang, associated with ex-security chief Zhou Yongkang, was convicted in October 2015 on charges including bribery, illegal possession of assets, and abuse of power, resulting in a prison sentence of 16 years.

In January 2017, former PetroChina vice chairman Liao Yongyuan received a 15-year sentence for abuse of power and accepting bribes totaling nearly $2 million.

In October 2021, the Central Commission for Discipline Inspection announced it was investigating Ling Xiao, former vice president of PetroChina, for significant disciplinary violations.

Lanzhou Petrochemical contamination

In 2014, Lanzhou Petrochemical—a subsidiary of CNPC—was responsible for leaks involving ethylene and ammonia as well as benzene contamination in water supplies and air pollution incidents in Lanzhou. Local authorities publicly condemned the company and demanded an official apology.

2003: Chongqing fatal gas leak

On December 23, 2003, a gas blowout at Luojia No. 16H well resulted in 243 fatalities and numerous injuries. The disaster was attributed to negligence by Eastern Sichuan Drilling Company under CNPC’s oversight. Failures included neglecting to repair a blowout-prevention valve, selecting a hazardous site near residential areas, delayed incident reporting, and inadequate safety evaluations. In March 2006, another gas leak occurred at Luojia No. 2 well, leading to the evacuation of 15,000 residents and requiring three attempts before successfully sealing the leak.

Halt of activities in Chad

In August 2013, operations conducted by CNPC's subsidiary in Chad were halted due to environmental breaches linked to crude oil extraction in the southern region. Chad's oil minister charged CNPC with deliberately discharging oil to reduce expenses, possessing insufficient equipment for spill remediation, unsafe waste disposal methods, and involving local workers without providing adequate protective equipment.

By March 2014, Chad imposed a $1.2 billion fine on CNPC. When the company did not fulfill the payment, authorities revoked five permits in August 2014. Subsequently, in October 2014, CNPC consented to a settlement amounting to $400 million.

Explosion at Jilin chemical facility

In November 2005, PetroChina, a subsidiary of CNPC, suffered explosions at its chemical plants in Jilin province, resulting in the release of approximately 100 tons of benzene—a known carcinogen—into the Songhua River. The contamination stretched over 80 kilometers, prompting the city of Harbin to suspend water supply for nearly four million residents for five days. The incident caused injuries exceeding 60 individuals, five fatalities, and one person reported missing. The pollutant plume reached Khabarovsk in Russia, where citizens depended on bottled water amid concerns over water safety. China’s environmental authorities levied the maximum penalty of one million yuan (around $125,000) against PetroChina. Cleanup expenses were estimated at roughly one billion USD. Chinese Foreign Minister Li Zhaoxing issued a formal apology to Russia. Domestic media criticized the government's handling of the crisis. Additionally, a separate gas pipeline explosion occurred in Sichuan in January 2006, resulting in nine deaths and nearly forty injuries.

Oil contamination incidents

In January 2010, a diesel pipeline operated by CNPC ruptured near where the Chishui and Weihe rivers converge in Shaanxi province, polluting tributaries feeding into the Yellow River—China’s longest river.

In July 2010, two explosions tore through pipelines at a CNPC oil storage facility near Xingang Harbour in Dalian, Liaoning province, discharging approximately 1,500 tonnes of crude oil into coastal waters. The resulting fire required deployment of 2,000 firefighters and took fifteen hours to extinguish; the spill affected an area around 180 square kilometers. Cleanup operations were undertaken to reduce environmental damage and restore functionality at this vital port.

Irregularities in trade

On January 19, 2022, Chinese regulators penalized PetroChina Fuel Oil Co Ltd—CNPC’s subsidiary—for irregularities in oil trading that disrupted market equilibrium for oil products, promoted excessive capacity among independent refineries, and indirectly led to losses in government tax revenue, as stated by the National Development and Reform Commission.

Human rights concerns

In 2011, EarthRights International accused PetroChina of complicity in severe human rights violations in Myanmar, where forced labor was employed to support economic activities tied to military operations.

Tax-related controversies

Leaked financial documents from January 2014 exposed that CNPC alongside PetroChina, Sinopec, and CNOOC utilized offshore shell companies based in tax havens such as the British Virgin Islands. This revealed extensive use of offshore tax avoidance strategies within China’s petroleum industry.

See also

• List of oil spills
• CNPC (HK)
• Natural Gas Industry
• Petroleum industry in China