China

In 1999, the Division signed a Petroleum Contract with Sinopec for the development of the Zhuangxi Buried Hill (“ZBH”) Oilfield in Shandong Province, China. Genting Oil & Gas (China) Limited (“GOGC”) owns and operates 100% of the ZBH Oilfield with a contract under which certain quantities of oil are provided to Sinopec. GOGC maintains a field office in Dongying City, Shandong which is dedicated to running the ZBH Oilfield. Over the last 8 years, the oil production from this field has been significantly enhanced by GOGC through the use of new ideas, new development drilling, a variety of work to renovate and stimulate old wells (work-overs) and by the deep emplacement of high-temperature submersible electric pumps.

In 2007, drilling and work-overs increased ZBH oil production by 5% such that the oilfield produced 220,547 tonnes or equivalent to 1.51 million barrels of oil. Under the contract terms with Sinopec, GOGC was entitled to 102,189 tonnes or 701,000 barrels of this oil. In 2007, ZBH oil was sold to Sinopec at an average price of US$59.3 per barrel (2006: US$55.50 per barrel), with the prices ranging from US$43 to US$76 per barrel over the year. Four new development wells were started, of which two were completed in late 2007. Construction began on a new light oil gathering system. As at 1 January 2007, GOGC’s ZBH 2P Working Interest was certified at 17.742 million barrels oil, with 2P Net Entitlement Reserves of 8.026 million barrels oil.


Offices:

Genting Oil & Gas (China) Ltd
Unit C, 12th Floor, Tower A
Gateway Plaza
No 18, Xiaguangli, Dong San Huan Bei Lu
Chaoyang District
Beijing 100027, China
T: +86 10 84400990
F: +86 10 84400688

Field office - Dongying
Blue Horizon International Hotel
5th Floor, Office Building Block A
Huanghe-Lushan Crossroad
New District Dongying of Shandong, China
T: +86 546 8151900
F: +86 546 8151988

Source: Genting Berhad Annual Report 2007

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