Annual Report 2012

Business Review and Prospects
BUSINESS REVIEW AND PROSPECTS (CONTINUED)
(3) Chemicals market
12
Demand for chemical products was
sluggish globally in 2012. Combined with
the impact of low-cost chemical feedstock
from the Middle East and North America,
the price of chemical products dropped
sharply. Domestic chemical products
market conditions generally followed that
of the international market. According to
company statistics, domestic apparent
consumption of synthetic resin, synthetic
fiber and synthetic rubber increased by
1.9%, 11.7% and 5.3%, respectively,
from the previous year. And domestic
apparent consumption of ethylene
equivalent increased by 2.7% from 2011.
Annual Report 2012 CHINA PETROLEUM & CHEMICAL CORPORATION
2 Production and Operations
Summary of Operations for the Exploration and Production Segment
(1) Exploration and production
In 2012, the company realized growth in
both oil and gas reserve and production,
and showed significant results in
unconventional oil and gas resource
development through exploration activities
conducted by the E&P segment in five
key domestic regions. In exploration,
the Company put more efforts to
complete 2D seismic measurements
for 23,436 kilometers and 3D seismic
measurements for 11,813 square
kilometers, representing a growth of
26% and 4%, respectively, year on year,
and completed drilling exploration wells
with a total footage of 2,545 kilometers,
an increase of 17% from the previous
2012 2011 2010
year. The Company achieved more than
100% replacement ratio of domestic oil
and gas throughout the year. In crude
oil development, the Company expedited
development activities in new blocks and
enhanced recovery rates in old blocks.
With respect to natural gas development,
the Company sped up construction of
production capacity in Sichuan Basin,
Ordos Basin and Dawan Block of Puguang
Gas Field. In terms of development for
unconventional oil and gas resources, the
Company met its target of developing
and building horizontal wells with a
capacity of 1 billion cubic meters in Ordos
Basin, which is mainly focusing on tight
gas development. Moreover, the Company
officially launched its first shale gas pilot
project with production capacity in Fuling.
Change from
2011 to 2012
(%)
Oil and gas production (mmboe) 427.95 407.91 401.42 4.9
Crude oil production (mmbbls) 328.28 321.73 327.85 2.0
China 306.60 303.37 302.18 1.1
Overseas 21.68 18.36 25.67 18.1
Natural gas production (bcf) 598.01 517.07 441.39 15.7
31 December,
2012
31 December,
2011
31 December,
2010
Change from
the end of the
previous year
to the end of
the reporting
period (%)
Proved reserves of crude oil and natural gas (mmboe) 3,964 3,966 3,963 (0.05)
Proved reserves of crude oil (mmbbls) 2,843 2,848 2,888 (0.2)
Proved reserves of natural gas (bcf) 6,730 6,709 6,447 0.3
Notes:
1. Includes 100% of production and reserves of SSI.
2. For domestic production of crude oil, 1 tonne = 7.1 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet; for production of crude oil abroad, 1
tonne = 7.27 barrels.