6:00AM New York – Slower profit rise in 2007 at Petro China disappoints investors.[/R]

Petro China reported annual net profit of RMB145.63 billion for the period ended December 31, 2007, representing an increase of 2.4% from the previous year. Revenues in the year 2007 rose 21.2% to Rmb 835.04 billion and earnings per share were Rmb 0.81. The board proposed to pay final dividend of Rmb 0.156859 per share, based on 45% of the net profit of the group for the year ended December 31, 2007, after deducting the interim dividend for 2007. Together with the interim dividend of Rmb 0.205690 per share, the full year dividend of 2007 will be Rmb 0.362549.

In 2007 total oil and gas output hit an aggregate of 1.11 billion barrels of oil equivalent, representing an increase of 4.8 percent from 2006.Crude oil output reached 839 million barrels, representing an increase of 8.1 million barrels or 1.0 percent from the previous year. Output of marketable natural gas reached 1.63 trillion cubic feet, representing a growth of 255.1 billion cubic feet or 18.6 percent from the previous year.

During the period, volume of processed crude oil reached 824 million barrels, representing an increase of 38.6 million barrels or 4.9% year on year. The Company produced 22.02 million tons of gasoline; 2.02 million tons of kerosene, and 47.35 million tons of diesel.

Annual sales of refined products reached 85.74 million tons, of which retail sales accounted for 54.82 million tons, up 16.6% year-on-year. The sales network of refined products was further strengthened. The total number of service stations reached 18,648 units, representing an increase of 2.4% year-on-year. Average daily sales volume of individual service station reached 8.4 tons, increased 7.7% year-on-year.

As of the end of 2007, overseas oil and gas net production reached 57.16 million barrels of oil equivalent, representing an increase of 0.9% year-on-year. Overseas oil and gas exploration achieved new progress in Chad, Kazakhstan as well as other regions.

PetroChina listed the A shares on the Shanghai Stock Exchange on 5 November 2007. The Company issued 4 billion A-shares with an offer price of Rmb16.7 per share. The net proceeds were Rmb 66.8 billion. Currently, the public float of the Company stands at 13.71%.

PetroChina stock in Shanghai has plunged 49% since its peak in November of 2007 from Rmb 48.62 to Rmb 22.60 and has dropped 29% in Hong Kong trading to HK$9.80 according to data provided by the Shanghai and Hong Kong Stock Exchanges.