Great Wall Drilling Company

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 Chinese state-owned oil and gas enterprise and ranks among the largest fully integrated energy companies worldwide. Its headquarters are situated in Dongcheng District, Beijing, and it secured the fourth position in the 2022 Fortune Global 500 list based on revenue.

Corporate structure

As a state-owned parent company, CNPC oversees the publicly traded entity PetroChina, which was established on November 5, 1999, during CNPC’s corporate reorganization. The majority of assets and liabilities associated with hydrocarbon exploration, refining operations, marketing activities, chemical production, and natural gas were transferred to PetroChina. Both CNPC and PetroChina collaborate on international ventures through CNPC Exploration & Development Company (CNODC), a joint entity with PetroChina holding a 50% share.

In March 2014, Chairman Zhou Jiping revealed intentions to invite private investors into six distinct business divisions within CNPC.

Additionally, CNPC maintains a memorandum of understanding with UOP LLC aimed at cooperative development of various biofuel technologies and projects within China.

History

The origins of CNPC trace back to a governmental department under the People's Republic of China, evolving from the Fuel Industry Ministry created in 1949. The Ministry of Petroleum was later established in 1955. Between that year and 1969, significant oil fields were discovered in regions including Qinghai, Heilongjiang (Daqing oilfield), Bohai Bay, and the Songliao basin. On September 17, 1988, CNPC was formally founded as a state-owned corporation taking over petroleum-related responsibilities from the Ministry of Petroleum.

Internationally, CNPC began its operations in 1993 through SAPET’s service contract in Peru’s Talara Province. By June 1997, CNPC had acquired a 40% interest in Sudan's Greater Nile Petroleum Operating Company and gained majority control over Kazakhstan's Aktobe Oil Company. That same year, it secured contracts for Venezuela’s Intercampo and East Caracoles oilfields.

In August 2005, CNPC agreed to purchase Alberta-based PetroKazakhstan for US$4.18 billion—marking the largest overseas acquisition by a Chinese firm at that time. Despite legal obstacles, the transaction was finalized by October 2005. Subsequently, in 2006, PetroChina acquired a 67% stake in PetroKazakhstan from CNPC.

The Chinese government restructured CNPC in July 1998 along upstream and downstream sectors, transferring most domestic assets to PetroChina. On November 5, 2007, PetroChina debuted as an A-share listed company on the Shanghai Stock Exchange.

Driven by China's increasing energy requirements and supported by government policies encouraging outbound investment, CNPC expanded its presence internationally into regions with higher political risk after more accessible reserves were exhausted.

In 2012, CNPC’s Bank of Kunlun encountered U.S. sanctions due to financial connections with Iran's Islamic Revolutionary Guard Corps.

In July 2013, CNPC partnered with Eni on a $4.2 billion transaction to acquire a 20% interest in Mozambique’s offshore natural gas block.

June 2014 saw a senior executive from a major CNPC subsidiary recalled amid an internal investigation; subsequent leadership changes occurred in Canada shortly thereafter.

In February 2022, CNPC entered into an agreement with Russia's Gazprom for an annual supply of 10 bcm of natural gas via the Far Eastern route.

Despite the geopolitical tensions following the 2022 Russian invasion of Ukraine, CNPC maintained its operations within Russia and was designated by Ukraine as an International Sponsors of War entity due to its payment of Russian taxes alongside Sinopec.

In July 2025, CNPC inaugurated an international communication center designed to enhance global promotion of China's petroleum sector narrative.

Operations

CNPC possesses verified reserves of oil equivalent. In 2007, its natural gas output reached 54 billion cubic meters. The company manages 30 exploration and production ventures internationally, spanning countries such as Azerbaijan, Canada, Iran, Indonesia, Myanmar, Oman, Peru, Sudan, Niger, Thailand, Turkmenistan, and Venezuela. A significant portion of these projects are carried out by its wholly owned drilling subsidiary, the Great Wall Drilling Company (GWDC).

In 2018, CNPC revealed plans to build natural gas storage facilities with a combined capacity of 55.6 billion cubic meters in northern Henan province. This initiative aims to ease supply constraints during peak winter periods. The project aligns with China's larger goal to transition from coal-fired boilers to cleaner natural gas solutions, addressing both environmental pollution and LNG transportation challenges.

Africa

CNPC was the pioneer Chinese enterprise to invest on the African continent. Its involvement began in 1996 with the development of oil fields in Sudan that Chevron had abandoned due to ongoing civil unrest.

South Sudan

Between 1997 and 2000, the Great Wall Drilling Company invested $700 million in drilling 57 wells across Sudan. In 2010, CNPC secured a $75.5 million contract from the Sudanese Petroleum Ministry for constructing five oil rigs.

Following South Sudan’s independence in 2011, CNPC maintained substantial stakes in oil fields within the new nation and became a key investor via its share in the Petrodar consortium. When civil conflict erupted in December 2013, Chinese authorities faced a decision on asset retention. CNPC opted to sustain a minimal presence onsite, allowing continued oil extraction despite elevated costs and depressed prices. This approach contributed to stabilizing South Sudan’s petroleum sector while enhancing China’s diplomatic influence and economic footprint in the region.

Chad

By 2023, CNPC operated oil fields in Chad through a partnership with a Swiss firm.

Mozambique

As of 2023, CNPC owns a 20% interest in two natural gas ventures located in Mozambique.

Niger

CNPC co-manages a refinery alongside Niger’s government and oversees the country's sole active oil field as of 2023.

Afghanistan

In December 2011, Afghanistan entered into an agreement with CNPC to develop oil blocks within the Amu Darya basin, which included drilling operations and refinery construction in northern provinces. This marked Afghanistan’s first international oil production agreement in decades. However, all CNPC activities ceased following the Taliban’s return to power.

Kazakhstan

CNPC stands as a prominent Chinese petroleum operator in Kazakhstan, particularly after acquiring PetroKazakhstan—a Canadian firm based in Alberta—for $4.18 billion. To mitigate political sensitivities, CNPC divested a minority share to KazMunaiGaz, Kazakhstan’s state-owned oil company.

In June 2023, CNPC received full endorsement from Samruk-Kazyna for investments aimed at expanding Kazakhstan’s gas and oil pipeline infrastructure and constructing a sour gas processing facility at the Kashagan offshore field. Additionally, CNPC completed an upgrade of the Shymkent oil refinery in August 2023, facilitating increased crude flow from Kazakhstan to China.

Pakistan

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

Uzbekistan

In 2006, CNPC partnered with state-owned Uzbekneftegaz, LUKoil Overseas, Petronas, and Korea National Oil Corporation to establish an international consortium focused on exploring and developing oil and gas reserves in the Aral Sea region.

China

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

In June 2023, CNPC entered into a 27-year agreement with QatarEnergy to purchase 4 million metric tons of LNG annually. This contract followed a similar arrangement signed in November 2022 between QatarEnergy and Sinopec. Both CNPC and Sinopec maintain equity interests in the eastern expansion of Qatar’s North Field, which accounts for approximately 5% of an 8 million metric ton LNG train.

Starting in June 2023, CNPC embarked on a 457-day drilling operation in the Taklamakan Desert targeting a depth of 10,000 meters for both scientific research and hydrocarbon exploration. In August 2023, the company also commenced ultra-deepwater drilling endeavors designed to bolster China’s energy self-sufficiency by lessening dependence on imported oil.

Russia

After nearly ten years of negotiations, CNPC and Russian energy giant Gazprom signed a landmark $400 billion contract in Shanghai in May 2014. This 30-year deal commits to delivering approximately 38 billion cubic meters of natural gas annually to China, commencing around 2018 to meet the country’s expanding energy requirements.

New Zealand

Operating under the name CCDC (NZ) Drilling, CNPC managed one triple stand DC rig, Rig 43, conducting workover and drilling activities in the Kapuni gas fields starting in late 2012. By August 2013, it had completed a four-well campaign for Shell Todd Oil Services (STOS). Later that month, CNPC drilled a well for Tag Oil at Cheal C but halted further operations due to pending appeals. Owing to these delays, CNPC concluded its drilling operations in New Zealand, dismantled Rig 43, and transported it abroad.

Malaysia

China Petroleum Pipeline Engineering, a subsidiary of CNPC, served as the principal contractor for two pipeline projects within Malaysia. These projects encountered corruption allegations leading to suspension by Prime Minister Mahathir Mohamed's seventh administration in 2018; however, the company refuted these accusations. In July 2019, Malaysian authorities confiscated $243.5 million from the firm as compensation for pipelines paid for but left incomplete, transferring the funds to a government-owned organization.

Sri Lanka

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

Iraq

CNPC commenced development of the Ahdab oil field in Wasit Governorate in March 2009. The field holds an estimated one billion barrels and marked one of the earliest major foreign investments in Iraq. This project involved renegotiating a prior agreement from 1997 between China and Iraq under Saddam Hussein’s regime. Despite challenges such as regional security concerns and conflicts with local farmers over damages and theft, Ahdab represented CNPC’s strategic entry into Iraq’s oil sector, albeit with an anticipated profit margin near only 1%.

Following Ahdab, CNPC secured a production contract through Iraq’s 2009/2010 oil services tender to develop the significantly larger Rumaila field alongside joint venture partner BP. Rumaila is estimated to contain vast oil reserves, with production projected to rise by 10% by late 2010 under their consortium. Additionally, CNPC leads a consortium including TotalEnergies and Petronas for developing the Halfaya field located in southern Iraq, which possesses substantial oil deposits.

In August 2023, CNPC Daqing Drilling Engineering Co received a $194 million EPC contract to drill wells at Rumaila utilizing two rigs; specific well counts were not disclosed.

By January 2024, CNPC assumed operational control of 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 imposition of international sanctions on Iran's oil and gas industries, which prompted European energy giants such as Shell Oil and Repsol to withdraw from the market, CNPC increased its involvement in developing Iranian oil fields. Together with Sinopec, CNPC undertook multiple initiatives to support the advancement of Iran's hydrocarbon resources. By 2011, CNPC was engaged in developing the historic Masjed Soleyman Oil Field, recognized as the oldest in the Middle East, through a $200 million partnership with the Iranian state-owned company NIOC. Initial production was expected to grow from per day to following the first phase, eventually reaching after completing phase two.

In August 2018, following TotalEnergies' exit from the Iranian South Pars gas field due to renewed US sanctions, CNPC expanded its ownership stake from 30% to 80.1% in this $5 billion venture. Nevertheless, by October 2019, CNPC divested from this project as ongoing US sanctions persisted, a move confirmed by Oil Minister Bijan Zangeneh.

Syria

CNPC collaborated with India's state-owned oil enterprise ONGC to establish a joint venture acquiring minority interests ranging from 33.3% to 39% in mature Syrian oil and gas properties. This partnership represented a notable alliance between two rival state oil companies seeking to broaden their international asset portfolios.

Qatar

In June 2023, CNPC entered into a 27-year contract with QatarEnergy to secure an annual supply of 4 million metric tons of LNG. Additionally, CNPC owns approximately a 5% equity share in the eastern expansion of Qatar's North Field, which corresponds to a portion of an LNG train with an 8 million metric ton yearly capacity.

Corruption allegations

In September 2013, Jiang Jiemin, who previously chaired PetroChina (a CNPC subsidiary), was removed from his post at the State-owned Assets Supervision and Administration Commission and subjected to a corruption investigation alongside four other senior oil executives. Jiang, associated with former security chief Zhou Yongkang, was convicted in October 2015 for bribery, illegal possession of assets, and abuse of authority, resulting in a 16-year prison sentence.

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 PetroChina vice president, for serious breaches of discipline.

Lanzhou Petrochemical contamination

In 2014, Lanzhou Petrochemical—a CNPC subsidiary—triggered leaks involving ethylene and ammonia, alongside benzene pollution contaminating local water sources and causing air quality issues in Lanzhou. Local authorities publicly condemned the company and demanded a formal apology.

2003: Chongqing fatal gas leak

On December 23, 2003, a blowout at the Luojia No. 16H well resulted in the deaths of 243 individuals and injured many others. Investigations attributed the disaster to negligence by Eastern Sichuan Drilling Company under CNPC’s oversight. Failures included not repairing a blowout-prevention valve, situating the well too close to residential areas, delays in reporting the incident, absence of safety ignition measures, and lack of environmental impact assessments. In March 2006, another leak occurred at Luojia No. 2 well, necessitating evacuation of approximately 15,000 residents and requiring three attempts before containment was achieved.

Halt of activities in Chad

In August 2013, operations by CNPC’s subsidiary in Chad were suspended due to environmental breaches linked to crude oil extraction in the southern region. The Chadian oil minister criticized CNPC for deliberately discharging oil to reduce expenses, lacking adequate spill response equipment, unsafe waste disposal methods, and insufficient safeguards for local laborers.

By March 2014, Chad imposed a $1.2 billion fine on CNPC. Subsequently, in August 2014, five of CNPC’s permits were revoked due to unpaid fees. In October 2014, CNPC consented to a $400 million payment to resolve the conflict.

Explosion at Jilin chemical facility

In November 2005, PetroChina, a subsidiary of CNPC, suffered explosions at its chemical plants located in Jilin, China. This incident released approximately 100 tons of carcinogenic benzene into the Songhua River. The resulting chemical contamination extended for 80 kilometers, prompting Harbin authorities to suspend water supply for nearly four million residents over five days. The event led to over 60 injuries, five fatalities, and one person reported missing. The pollution reached Khabarovsk in Russia, raising concerns about water safety there. China’s environmental authority levied a fine of one million yuan (around $125,000), the highest permissible under national legislation. Cleanup expenses were estimated at $1 billion. Chinese Foreign Minister Li Zhaoxing publicly apologized to Russia for the spill. The incident triggered severe domestic criticism regarding the government’s handling of the situation. A related gas pipeline explosion in Sichuan in January 2006 caused nine deaths and almost 40 injuries.

Oil contamination incidents

In January 2010, a diesel pipeline owned 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.

Later that year in July 2010, two pipelines exploded at a CNPC oil storage facility close to Dalian’s Xingang Harbour in Liaoning province. This resulted in roughly 1,500 tonnes of crude oil spilling into the sea. Containing the fire required deployment of 2,000 firefighters over a duration of 15 hours. The oil slick covered an area near 180 square kilometers. Subsequent cleanup operations aimed to reduce environmental damage and restore operational stability.

Irregularities in trade

On January 19, 2022, Chinese regulators imposed sanctions on PetroChina Fuel Oil Co Ltd, a subsidiary of CNPC, citing irregularities in oil trading practices that disrupted market stability, encouraged inefficient refinery capacity usage, and indirectly led to losses in government tax revenues as stated by the National Development and Reform Commission.

Human rights concerns

In 2011, EarthRights International accused PetroChina of participating in severe human rights violations in Myanmar where forced labor was employed to support economic projects linked to military interests.

Tax-related controversies

Leaked financial documents from January 2014 revealed that CNPC along with PetroChina, Sinopec, and CNOOC utilized offshore shell companies registered in the British Virgin Islands as part of strategies indicative of offshore tax avoidance.

See also

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