Sinopec provides a wide range of engineering services for oil and gas exploration and production, including drilling, well logging, well cementation, geophysical exploration, and ground, ocean and oilfield integrated services. Currently, we provide engineering services in 38 countries, including China. In 2009, Sinopec Petroleum Engineering Research Institute and Sinopec Prospecting Technology Research Institute were established. Specialized petroleum engineering management will provide more specialized services for energy development.

In 2009, the global financial crisis posed daunting challenges to Sinopec’s petroleum engineering business. Nonetheless, Sinopec managed to maintain rapid and sound development of its petroleum engineering business, thanks to the raised level of service and the dedication of Sinopec’s petroleum engineering personnel.

In 2009, Sinopec worked hard to drive implementation of four important petroleum engineering projects: Sichuan-East China gas transmission project (including surface collection and transmission, purification plants and a long-distance pipeline), #3 platform at Shengli Oilfield, 1,000-km-long Yulin-Jinan gas transmission pipeline and the third phase of surface works of capacity expansion at block #12 of Tahe Oilfield.

In 2009, Sinopec secured 2.81 billion dollars-worth petroleum engineering contracts outside China, a 7.7% rise over the 2008 level, and completed contract value of 2.43 billion dollars, 29.2% higher than the previous year’s level. 355 petroleum engineering service contracts in 37 countries are currently underway. Sinopec entered the petroleum engineering service market in Kuwait for the first time in 2009 by wining a bid that involved 13 drilling rigs and contract value of 790 million dollars. Sinopec also won a 200 million dollars -worth geophysical exploration service contract in Saudi Arabia, the largest exploration project ever undertaken by Sinopec abroad, in addition to seven surface engineering projects. Sinopec is also working hard to improve its service level in offshore petroleum engineering.