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  • petrochina

    Thank you for reading this report and for your support and attention to PetroChina over time.

    In 2018, in the face of a complex and ever-changing business environment, PetroChina stick to the concept of business growth stressing innovation, coordination, eco friendliness, openness and benefit sharing and the mission to deliver clean, reliable and affordable high-quality energy. We insisted on steady development, going all out to procure high-quality development and carry out the strategy with respect to resources, market, internationalization and innovation. Thanks to these efforts, the Company scored a better-than-expected performance and further improved our value-creating capability.

    We focused on increasing the proportion of low-carbon energy and strived for clean production, making outstanding contributions to eco friendly development. Development of clean energy is a major part of the general endeavor to procure a better energy mix, ensuring energy security and promoting an eco friendly culture. PetroChina steadily pushed ahead low-carbon development by seizing the opportunities brought about by energy revolution. Bearing in mind that “Clean Waters and Lush Mountains are Invaluable Assets”, we aimed at clean production and efficient use of energy resources, and continuously level up carbon emission management. We enhanced restructuring of our oil and gas business, enlarged the proportion of shale oil and gas and tight gas, and coordinated business development in respect of new energies, thereby further optimizing the Company’s asset portfolio. In 2018, the proportion of natural gas production in our overall oil and gas production at home rose to 46%. The Company maintained double-digit growth in its natural gas sales volume, satisfying 70% of requirements in the local market and benefiting innumerable households. We spared no effort in upgrading the quality of our oil products, and rounded off upgrade of our gasoline and diesel products in line with National VI Standard. PetroChina has thereby made further contributions to the UN’s initiative, the so-called “Sustainable Energy for All” and the mission to make China a beautiful country boasting blue sky, green land and clean water.

    We stressed compliance with laws and improved corporate governance, laying a solid foundation for sustainable development. We enhanced corporate governance by law, kept improving our corporate governance system and building up the internal control system, strengthened legal education and compliance training for everyone, thereby keeping all our production and operation activities on the law-abiding track. To effectively control environmental, safety and social risks, we improved the mechanism conducing towards sustainable development and made the concept of sustainable development part and parcel of the entire process of our business operation. We intensified the HSE system audit, and carried out a cover-it-all audit on our contractors for the first time, leveling up the coverage, accuracy and effectiveness of such audit. We constantly strengthened communication with stakeholders and solicited their participation, thereby enhancing transparency of our business operation. Thanks to these efforts, we have consolidateda positive corporate image, reaped more favorable comments from all sectors of society and hence the ever-growing brand value of PetroChina.

    We shifted away to stress innovation as the new engine of our development, achieving more high-quality results. Guided by the principle of “business the paramount concern, self-initiated innovation, augmented incentives, openness and sharing”, we strived for innovation in technology, management and business modelling, promoted in-depth integration of industrialization and informatization, and sped up capability enhancement in terms of self-initiated innovation and set-up of technical standards for the industry, making innovation the primary driving force for business development. Unremitting efforts were made primarily in scientific and technological innovation, quickening our pace in building up a powerful technological innovation system with distinctive characteristics and assembling essential elements, pooling superb resources for major scientific and technological projects initiated at the national level or that of PetroChina and speeding up technological upgrading and application of the outcome of scientific and technological research in our existing business activities. In 2018, the Company made 12 milestone achievements in major scientific and technological research. Theory and Technology of Exploiting Oil Reserves in Conglomerate of Sag Areas and Discovery of the Huge Mahu Oilfield was awarded National Science and Technology Progress Award (1st class). We made every effort to push ahead innovation in business management and improvement of internal systems, making digital-oriented innovation in business management and business modelling and quickening the pace in building up a well-integrated data platform.

    We insisted on openness and cooperation, delving deep in implementation of the Belt and Road Initiative, and growing more streamlined in building up the international cooperative oil and gas community of shared interests. PetroChina is committed to be an excellent corporate citizen and a preferred partner for other players in the industry worldwide, in order to make a concurrent response to major changes in the energy industry and build a community of shared interests in oil and gas cooperation featuring openness and mutual benefits. In 2018, as a member of OGCI, we were involved in the OGCI’s initiatives, strengthened the research, demonstration and promotion of low-carbon technologies and business modelling in China, and explored the development opportunities for transition to low-carbon energies in the petroleum industry. We shared opportunities under the Belt and Road Initiative for oil and gas cooperation with our partners, and executed a number of strategic agreements and major cooperation projects. In addition, we made great efforts to build the “Silk Road on Ice” and were highly recognized and commended by the resource-galore countries. This has helped us build up a new image and set a new example for international oil and gas cooperation.

    We were devoted to improving people’s livelihood, serving the social undertakings and stayed more steadfast in fulfilling our social responsibility as a corporate citizen. Adhering to a people-centered development concept, we shared our achievements with our employees, the public and our partners. To this end, we improved an effective mechanism enabling employees to participate in decision-making and business management, thereby paving the way for their career development, and putting in place a mechanism to increase employees’ income in proportion to their productivity. We improved the mechanism to communicate with the local government on a regular basis, pushed ahead implementation of strategic cooperation agreements and projects to boost local economic and social development. We responded positively to the initiatives of the UN’s 2030 Agenda for Sustainable Development by bringing into full play our strong points in industry, know-how and talent and delivered excellent results in targeted poverty alleviation projects, so as to contribute to the fight against poverty. Throughout the year, we implemented over 40 poverty alleviation projects, benefiting more than 80,000 people. PetroChina was also widely recognized by the host countries for its efforts overseas to become an excellent corporate citizen. In 2018, the President of Kazakhstan and Uzbekistan awarded the “Order of Friendship of the Republic of Kazakhstan” and the “Dustlik (Friendship) Medal of the Republic of Uzbekistan” to me respectively in recognition of PetroChina’s contributions to economic and social development of the two countries. We all feel deeply proud and are greatly inspired by this.

    The world is undergoing drastic changes in its global governance system, in tandem with readjustments toits energy supply and demand pattern and faster transition in source of energy, bringing forth more complicated and arduous challenges to us. As an major player in the global energy industry, PetroChina continues to carry out the mission of “contributing energy and creating harmony”. To build a top-class international energy company, we will insist on steady development and promote quality-based development, cooperating with all stakeholders to bring forth and share a bright future featuring sustainable development.

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