29 October 2014, Beijing - PetroChina Company Limited ("PetroChina" or "the Company", HKSE: 0857; NYSE: PTR; SSE: 601857) today announced that the Company achieved steady development in its production and operations, delivering sound operating results that exceeded expectations in the first three quarters of 2014. During the period, the Company faced severe situations arising from the slow recovery of world economy, weak domestic demand in refined products and a depressed market for chemicals. In response, the Company focused on its guidelines of quality, profitability and sustainable development, endeavored to broaden income sources, reduce expenditure, cut costs and increase profits.

In the first three quarters of 2014, the Company realized a turnover of RMB1,754,548 million, representing an increase of 4.3% as compared with the same period last year. Net profit attributable to the Company's shareholders was RMB96,047million, and earning per share was RMB0.52, representing an increase of 0.8% as compared with the same period last year. On the whole, the Company maintained its active, healthy and effective development.

Exploration and Production

The Company made major discoveries and important progress in oil and gas exploration, and achieved a steady increase in the output of oil and gas. In the first three quarters of 2014, the Company's crude oil output reached 700.0 million barrels, representing an increase of 0.3% as compared with the same period last year. Marketable natural gas output was 2,193.9 billion cubic feet, representing an increase of 7.1% as compared with the same period last year. Oil and gas equivalent output was 1,065.8 million barrels, representing an increase of 2.5% as compared with the same period last year, of which overseas oil and gas equivalent output was 101.7 million barrels, representing an increase of 0.3% as compared with the same period last year. In the first three quarters of 2014, profit from operations for the exploration and production segment reached RMB145,954 million, representing a decrease of 0.7% as compared with the same period last year, mainly due to the plunge in world oil prices since the third quarter.

Refining and Chemicals

The Company adhered to the principle of market-orientation and profitability, made reasonable arrangements for its processing load, optimized its resource allocation, and sought to reduce losses and enhance profitability. In the first three quarters of 2014, the Company processed 746.4 million barrels of crude oil, representing an increase of 1.6% as compared with the same period last year. The Company produced 68.008 million tons of gasoline, diesel and kerosene, representing an increase of 1.9% compared with the same period last year. In the first three quarters of 2014, the refining and chemicals segment incurred a loss from operations of RMB8,755 million, narrowing the loss by RMB11,249 million over the same period last year. The refining operations achieved turnaround and made a profit from operations of RMB2,567 million, representing an increase of RMB7,888 million as compared with the same period last year. Facing the prolonged slump in the chemical market, the Company actively optimized its product st ructure. The chemicals operations incurred a loss from operations of RMB11,322 million, narrowing the loss by RMB3,361 million over the same period last year.

Marketing

The Company adjusted its marketing strategy in a flexible manner and endeavored to expand sales and reduce inventory. It achieved growth in production of its high-profitability products, such as aviation kerosene. For its international trading business, the Company fully deployed its resource allocation function. In the first three quarters of 2014, impacted by the weak domestic demand of refined products, the Company sold 117.573 million tons of gasoline, diesel and kerosene, representing a decrease of 1.5% as compared with the same period last year. By actively optimizing sales structure, enhancing the inventory management and focusing on quality and profitability, profit from operations for the Marketing segment reached RMB10,567 million in the first three quarters of 2014, representing an increase of 57.6% as compared with the same period last year.

Natural Gas and Pipeline

The Company coordinated and balanced the utilization of two sources, including domestic gas and overseas gas, promoted the orderly production of key gas projects, ensuring sales profitability. In the first three quarters of 2014, profit from operations for the natural gas and pipeline segment reached RMB9,234 million. Excluding the gain from the sale of certain pipeline assets in 2013, profit for the first three quarters of 2014 increased by RMB10,618 million as compared with the same period last year. In the first three quarters of 2014, net loss incurred from sales of imported gas and LNG in the natural gas and pipeline segment narrowed by RMB3,303 million over the same period last year.

Outlook

In the fourth quarter of 2014, the Company will still face a complex macro-environment, which will be conducive for the stable growth of production and operations, but be challenged by adverse factors such as a reduction of oil price. The Company will pursue steady progress while maintaining stability, coordinate and optimize its production and operations, make active and steady headway in reforms, effectively implement measures for safety and environment protection, and strive to achieve its production and operation targets for the year.

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