CHINA’S ENERGY SECTOR & SINOPEC

1. CHINA’S ENERGY SECTOR & SINOPEC 2011.11

2. Contents Section 1 China’s Energy Sector Fundamentals Section 2 China’s Oil & Gas Supply/Demand Section 3 Forecast on China’s Oil & Gas Supply/Demand Section 4 Profile of SINOPEC Section 5 SINOPEC in USA

3. Section 1 CHINA’S ENERGY Sector fundamentals

4. China’s Energy Demand Composition • Coal plays a dominant role in China’s energy consumption. • Oil accounts for 17.6% ,which is half of the world’s average level of 34%, and gas shares 4% in China and much lower than the world average of 23.8%.

5. China’s Total Energy Supply and Demand China’s Primary Energy Production and Consumption • In 2010,China’s primary energy production is 2960 million tons of coal equivalent, while the energy consumption is 3250. • Domestic energy production supplies 92% of the consumption, whereas domestic oil production provides 45% of the demand, gas shares 91% of domestic requirements.

6. Section 2 China’s oil & gas supply/demand

7. China’s Shares of Fossil Energy in World Reserves & Productions

8. China’s Oil Reserves Technologically recoverable reserves of crude oil have been increased stably, with a R/P ratio of 12years. The reserves are in eastern, northwest, and offshore areas of China.

9. China’s Oil Production and Consumption 10KT • In 1993, China became an net importer of crude oil. • In recent years，oil consumption has been driven by large scale infrastructure construction activities and development of the manufacture industries. • Oil consumption rose to 449 million tons in 2010, with an annual average growth rate of 7.2% during 2000-2010.

10. China’s Per Capita Oil Consumption • Compared with developed countries, China's per capita oil consumption is less than half of the world’s average. Ton World average 0.62 10

11. Section 3 Forecast on China’s oil & gas supply/Demand

12. Forecast on World’s Energy Consumption Structure • By 2030，there will be significant changes in world’s energy consumption structure. Consumption of coal and oil in terms of percentage in total energy consumption is expected to decrease while that of natural gas shall go up and take a higher portion.

13. The History of China’s GDP, Oil & Gas Consumption GDP Gas consumption Oil consumption

14. The Forecast on China’s Energy Demand

15. Forecast of China’s Oil Production and Consumption mt

16. Forecast on Gas Reserve and Consumption BCM China’s gas production in 2030

17. Forecast of China’s Gas Production and Consumption BCM

18. Develop Alternative Energies:12th FYP Clean Energy Target Accounting for 11.4% of total energy consumption by 2015, 15% by 2020

19. Section 4 Profile of Sinopec

20. Sinopec Corp. is one of the largest integrated energy and petrochemical companies with upstream, midstream and downstream operations in China. Sinopec Corp listed on stock exchanges in Hong Kong, New York and London in 2000, and on Shanghai Stock Exchange in 2001.   Sinopec Profile

21. Sinopec Profile One of the Largest Integrated Petrochemical Companies in Asia Marketing E&P Refining • Owns the largest oil products distribution network in China, running 30116 service stations as of end of 2010. • Over 60% market share of oil products in mainland China Chemicals • The second largest oil & gas producer in China • 3963 mboe of oil & gas proved reserve at the end of 2010 • Oil production 900KBD, gas production 441bcf in 2010 • Largest refiner in China • Total refining capacity of 222 million tons per year (4.44 million bbls per day) • The largest petrochemical producer and distributor in China, 4th in the world • Ethylene capacity 9.33 mmta 21

22. SINOPEC’S Vision Vision for the “12th Five-Year Plan” Period Corporate Strategies Resources Marketing Strategic structure adjustment Market expansion Integration Globalization To Build a First-Class Global Corporation Resource optimization, energy conservation and emission reduction International operation Differentiation Low Emission Innovation in technology, management, and staff development 22

23. Section 5 Sinopec in USA

24. SINOPEC IN USA Sinopec is engaged in the supply and trading of oil/gas, petrochemicals, equipment and materials. In 2010, the Company’s total trading volumes of crude and refined products were 186 and 20 million tons respectively. The Company witnessed rapid growth in trading chemicals, equipment and materials. • SINOPEC Representative Office (New York) Public Relations Investor’s Relations • UNIPEC America, Inc.(New York) Oil/Gas trading in Americas Trading assets investment • SINOPEC USA, Inc. (Houston) Import/Export equipment and petrochemicals

25. Thank You!