PetroChina Company: Ptr Shanghai Stock Exchange Stock Code

The following excerpt is from the company's SEC filing.

This interim report contains certain forward-looking statements with respect to the financial position, operational results and business of the Group. These forward-looking statements are, by their nature, subject to significant risk and uncertainties because they relate to events and depend on circumstances that may occur in the future and are beyond our control. The forward-looking statements reflect the Group’s current views with respect to future events and are not a guarantee for future performance, nor do these statements constitute substantial undertakings to investors by the Group. Actual results may differ from the information contained in the forward-looking statements. Investors shall be aware of the risks relating to investments.

002 IMPORTANT NOTICE 2013 INTERIM REPORT IMPORTANT NOTICE The Board of Directors (the “Board”) of PetroChina Company Limited (the “Company”), the Supervisory Committee and the Directors, Supervisors and senior management of the Company warrant that there are no material omissions, misrepresentation or misleading statements contained in this interim report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the information contained herein. No substantial shareholder of the Company has obtained any funds from the Company from non-operating activities. The 2013 interim report was approved at the tenth meeting of the Fifth Session of the Board. Mr Wang Guoliang and Mr Yu Baocai, non-executive Directors of the Company, Mr Ran Xinquan, executive Director and Vice-President of the Company, Mr Cui Junhui and Mr Chen Zhiwu, independent non-executive Directors of the Company, were absent from the meeting. Mr Wang Guoliang had authorised Mr Li Xinhua, non-executive Director of the Company, in writing to attend the meeting by proxy and to exercise his voting rights on his behalf. Mr Yu Baocai had authorised Mr Wang Dongjin, executive Director and President of the Company, in writing to attend the meeting by proxy and to exercise his voting rights on his behalf. Mr Ran Xinquan had authorised Mr Liao Yongyuan, executive Director and Vice-President of the Company, in writing to attend the meeting by proxy and to exercise his voting rights on his behalf. Mr Cui Junhui had authorised Mr Li Yongwu, independent non-executive Director of the Company, in writing to attend the meeting by proxy and to exercise his voting rights on his behalf. Mr Chen Zhiwu had authorised Mr Liu Hongru, independent non-executive Director of the Company, in writing to attend the meeting by proxy and to exercise his voting rights on his behalf. Mr Zhou Jiping, Chairman of the Board, Mr Wang Dongjin, Director and President, and Mr Yu Yibo, Chief Financial Officer, warrant the truthfulness, accuracy and completeness of the financial statements included in the 2013 interim report. The financial statements of the Company and its subsidiaries (the “Group”) have been prepared in accordance with China Accounting Standards (“CAS”) and International Financial Reporting Standards (“IFRS”), respectively. The financial statements in this interim report are unaudited. The Board was authorised by the shareholders to approve the distribution of an interim dividend for 2013 at the annual general meeting of the Company on May 23, 2013. The Board has resolved to declare and pay to all shareholders of the Company an interim dividend of RMB0.16110 per share (inclusive of tax) for the six months ended June 30, 2013 on the basis of a total of 183,020,977,818 shares of the Company as at June 30, 2013. The total amount of the interim dividend payable is RMB 29,485 million.

CORPORATE PROFILE 003 The Company was established as a joint stock company with limited liability under the Company Law of the People’s Republic of China (the “PRC” or “China”) on November 5, 1999 as part of the restructuring of the China National Petroleum Corporation (“CNPC”). The Group is the largest oil and gas producer and seller in the PRC, where it occupies a leading position in the oil and gas industry, one of the largest companies in the PRC in terms of revenue and one of the largest oil companies in the world. The Group is primarily engaged in activities including: the exploration, development, production and marketing of crude oil and natural gas; the refining of crude oil and petroleum products; the production and marketing of primary and derivative petrochemical products and other chemical products; the marketing and trading of refining products; the transmission of natural gas, crude oil and refined products; and the marketing of natural gas. The American Depositary Shares (the “ADSs”), H shares and A shares of the Company were listed on the New York Stock Exchange, The Stock Exchange of Hong Kong Limited (“HKEx” or “Hong Kong Stock Exchange”) and Shanghai Stock Exchange on April 6, 2000, April 7, 2000 and November 5, 2007, respectively. Registered Chinese Name of the Company: English Name of the Company: PetroChina Company Limited Legal Representative of the Company: Zhou Jiping Secretary to the Board: Li Hualin Address: No. 9 Dongzhimen North Street Dongcheng District Beijing, PRC Telephone: 86(10) 5998 6223 Facsimile: 86(10) 6209 9557 Email Address: suxinliang@petrochina.com.cn Representative on Securities Matters: Liang Gang Address: No. 9 Dongzhimen North Street Dongcheng District Beijing, PRC Telephone: 86(10) 5998 6959 Facsimile: 86(10) 6209 9559 Email Address: liangg@petrochina.com.cn

006 SUMMARY OF FINANCIAL DATA AND FINANCIAL INDICATORS 2013 INTERIM REPORT SUMMARY OF FINANCIAL DATA AND FINANCIAL INDICATORS 1. Key Financial Data and Financial Indicators Prepared under IFRS Unit: RMB million Changes from the As at the end As at the end end of the preceding of the reporting of the preceding year to the end of the Items period year reporting period (%) Total assets 2,341,474 2,168,896 8.0 Equity attributable to owners of the Company 1,101,128 1,064,010 3.5 Same period of Changes over the The reporting the preceding same period of the Items period year preceding year (%) Turnover 1,101,096 1,046,661 5.2 Profit attributable to owners of the Company 65,522 62,026 5.6 Net cash flows from operating activities 102,057 48,006 112.6 Basic earnings per share (RMB) 0.36 0.34 5.6 Diluted earnings per share (RMB) 0.36 0.34 5.6 Return on net assets (%) 6.0 6.0 -

007 SUMMARY OF FINANCIAL DATA AND FINANCIAL INDICATORS 0072. Key Financial Data and Financial Indicators Prepared under CAS Unit: RMB million Changes from the As at the end As at the end end of the preceding of the reporting of the preceding year to the end of the Items period year reporting period (%) Total assets 2,341,415 2,168,837 8.0 Equity attributable to equity holders of the Company 1,101,264 1,064,147 3.5 Same period of Changes over the The reporting the preceding same period of the Items period year preceding year (%) Operating income 1,101,096 1,046,661 5.2 Net profit attributable to equity holders of the Company 65,521 62,024 5.6 Net profit after deducting non-recurring profit/loss items attributable to equity holders of the Company 49,503 63,501 (22. 0) Basic earnings per share (RMB) 0.36 0.34 5.6 Diluted earnings per share (RMB) 0.36 0.34 5.6 Weighted average return on net assets (%) 6.0 6.0 -Net cash flows from operating activities 102,057 48,006 112.6

008 SUMMARY OF FINANCIAL DATA AND FINANCIAL INDICATORS 2013 INTERIM REPORT 3. Non-recurring profit/loss items Unit: RMB million For the six months ended June 30, 2013 Non-recurring profit/loss items profit / (loss) Net loss on disposal of non-current assets (441) Government grants recognised in the income statement 641 Net gain on disposal of available-for-sale financial assets 3 Reversal of provisions for bad debts against receivables 28 Gain on investment of certain pipeline net assets and operations 24,822 Other non-operating income and expenses (2,132) Sub-total 22,921 Tax impact of non-recurring profit/loss items (6,977) Impact of minority interests 74 Total 16,018 4. Differences between CAS and IFRS There is no difference between the consolidated net profit of the Group for the reporting period under IFRS and that under CAS; the consolidated shareholders’ equity as at the end of the reporting period under IFRS and CAS was RMB 1,233,512 million and RMB 1,233,530 million respectively, with a difference of RMB 18 million. The difference under the different accounting standards was primarily due to the revaluation of assets other than fixed assets and oil and gas properties in 1999. During the restructuring in 1999, a valuation was carried out in 1999 for assets and liabilities injected by CNPC. The valuation results on assets other than fixed assets and oil and gas properties were not recognised in the financial statements prepared under IFRS.

CHANGES IN SHARE CAPITAL AND INFORMATION ON SHAREHOLDERS 009 ChANgES IN ShARE CAPITAl AND INfORMATION ON ShAREhOlDERS 1. Changes in Shareholdings During the reporting period, there was no change in the total number or structure of shares of the Company arising from bonus issues or placings or otherwise. 2. Shareholdings of Substantial Shareholders The total number of shareholders of the Company as at June 30, 2013 was 1,026,805, including 1,018,854 holders of A shares and 7,951 holders of H shares (including 272 holders of ADSs). (1) Shareholdings of the top ten shareholders Unit: Shares Increase / Number of decrease Number shares Percentage of during the of shares pledged or Nature of Number of shareholding reporting with selling subject to Name of shareholders shareholders shares held (%) period (+,-) restrictions lock-ups CNPC State-owned 158,033,693,528(1) 86.35 0 0 0 Overseas legal HKSCC Nominees Limited(2) 20,829,039,708(3) 11.38 5,012,932 0 0 person National Council for Social Security State-owned Fund of the PRC legal person 400,000,000 0.219 0 400,000,000 0 Industrial and Commercial Bank of Domestic non- China Limited - China Universal SCI State-owned 41,381,160 0.023 -2,473,830 0 0 Index Securities Investment Fund legal person State-owned Guangxi Investment Group Co., Ltd. 39,560,045 0.022 0 0 0 legal person Industrial and Commercial Bank Domestic non- of China - Shanghai 50 Index ETF State-owned 34,706,353 0.019 6,906,950 0 0 Securities Investment Fund legal person CSOP Asset Management Limited Overseas legal -CSOP FTSE China A50 ETF person 31,191,081 0.017 4,423,611 0 0 Shanghai Liangneng Construction Domestic non- Engineering Company Limited State-owned 25,763,816 0.014 0 0 0 legal person China Life Insurance Company Limited Domestic non- - Dividends - Personal Dividends - State-owned 25,462,539 0.014 -3,208,342 0 0 005L - FH002 Shanghai legal person China Life Insurance Company Limited Domestic non- - Traditional - Ordinary Insurance State-owned 22,121,986 0.012 -3,851,500 0 0 Products - 005L - CT001 Shanghai legal person

010 Notes: (1) Such figure excludes the H shares indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC. (2) HKSCC Nominees Limited is a subsidiary of the Hong Kong Stock Exchange and its principal business is to act as nominee on behalf of other corporate or individual shareholders. (3) 291,518,000 H shares were indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC, representing 0.16% of the total share capital of the Company. These shares were held in the name of HKSCC Nominees Limited. (2) Shareholdings of the top ten shareholders of shares without selling restrictions Unit: Shares Number of Ranking Name of shareholders Type of shares shares held 1 CNPC 158,033,693,528(1) A shares 2 HKSCC Nominees Limited 20,829,039,708 H shares Industrial and Commercial Bank of China Limited - China Universal 3 41,381,160 A shares SCI Index Securities Investment Fund 4 Guangxi Investment Group Co., Ltd 39,560,045 A shares Industrial and Commercial Bank of China - Shanghai 50 Index 5 34,706,353 A shares ETF Securities Investment Fund 6 CSOP Asset Management Limited - CSOP FTSE China A50 ETF 31,191,081 A shares 7 Shanghai Liangneng Construction Engineering Company Limited 25,763,816 A shares China Life Insurance Company Limited. - Dividends - 8 25,462,539 A shares Personal Dividends - 005L - FH002 Shanghai China Life Insurance Company Limited - Traditional - Ordinary Insurance 9 22,121,986 A shares Products - 005L - CT001 Shanghai Bank of China Limited - Jiashi CSI 300 Index Trading Securities Investment 10 21,179,810 A shares Fund Note: (1) Such figure excludes the H shares indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC. These shares were held in the name of HKSCC Nominees Limited. Statement on connected parties or parties acting in concert among the above-mentioned shareholders: except that “Industrial and Commercial Bank of China Limited - China Universal SCI Index Securities Investment Fund” and “Industrial and Commercial Bank of China - Shanghai 50 Index ETF Securities Investment Fund” are both under the custody of Industrial and Commercial Bank of China Limited, and that “China Life Insurance Company Limited - Dividends - Personal Dividends - 005L - FH002 Shanghai” and “China Life Insurance Company Limited - Traditional - Ordinary Insurance Products - 005L - CT001 Shanghai” are both under the management of China Life Insurance Company Limited, the Company is not aware of any connection among or between the top ten shareholders and the top ten shareholders of shares without selling restrictions or that they are parties acting in concert as provided for in the Measures for the Administration of Acquisitions by Listed Companies.

011 (3) Disclosure of substantial shareholders under Hong Kong’s Securities and Futures OrdinanceSo far as the Directors are aware, as at June 30, 2013, the persons other than a Director, Supervisor or senior management of the Company who had interests or short positions in the shares or underlying shares of the Company which are discloseable under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance were as follows:Percentage of such Percentageshares in the same of totalName of Nature of class of the issued share capitalshareholders shareholding Number of shares Capacity share capital (%) (%)A Shares 158,033,693,528 (L) Beneficial Owner 97.60 86.35Interest ofCNPC CorporationH Shares 291,518,000 (L)(1) Controlled by 1.38 0.16the SubstantialShareholderAberdeen AssetManagement Plcand its Associates(together “the H Shares 1,900,462,023(L) Investment Manager 9.01 1.04Group”),on behalf ofAccounts Managedby the GroupInterest of1,441,132,739(L) Corporation 6.83 0.79BlackRock, Inc. (2) H Shares Controlled by6,770,000 (S) the Substantial 0.03 0.004ShareholderBeneficial Owner/ InvestmentManager / Custodian1,265,016,204 (L) 5.99 0.69Corporation /Approved LendingJPMorgan Chase & H Shares AgentCo. (3) 117,817,221 (S) Beneficial Owner 0.56 0.06CustodianCorporation /985,348,906 (LP) 4.67 0.54Approved LendingAgentTempleton AssetManagement Ltd. H Shares 1,261,064,077(L) Investment Manager 5.98 0.69(L) Long position (S) Short position (LP) Lending poolNotes:(1) 291,518,000 H shares (long position) were held by Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC. CNPC is deemed to be interested in the H shares held by Fairy King Investments Limited.(2) BlackRock, Inc., through various subsidiaries, had an interest in the H shares of the Company, of which 1,441,132,739 H shares (long position) and 6,770,000 H shares (short position) were held in the capacity as a corporation controlled by the substantial shareholder.(3) JPMorgan Chase & Co., through various subsidiaries, had an interest in the H shares of the Company, of which 216,068,567 H shares (long position) and 117,817,221 H shares (short position) were held in its capacity as beneficial owner; 63,598,731 H shares (long position) were held in its capacity as investment manager; and 985,348,906 H shares (long position) were held in its capacity as custodian corporation / approved lending agent. These 1,265,016,204 H shares (long position) included the interests held in its capacity as beneficial owner, investment manager and custodian corporation / approved lending agent.

012 As at June 30, 2013, so far as the Directors are aware, save as disclosed above, no person (other than a Director, Supervisor or senior management of the Company) had an interest or short position in the shares of the Company according to the register of interests in shares and short positions kept by the Company pursuant to Section 336 of the Securities and Futures Ordinance. 3. Information on Changes of Controlling There was no change in the controlling shareholder or the de facto controller of the Company during the reporting period.

013 DIRECTORS’ REPORTThe Board of the Company is pleased to present the Directors’ report.            1. Review of Operating Results In the first half of 2013, the Group was confronted with the severe situation of the sluggish global economic recovery, the slowing down of China’s economic growth and the weak demand in the oil and petrochemical markets. In the face of such challenges, the Group continued to vigorously implement its three key strategies on “resources, markets and internationalisation”, placed emphasis on the development of oil and gas as its principal activities, strengthened the overall balance of production, transportation, sales and storage, focused on quality and profitability, and enhanced its investing activities and cost control. As a result, the Group’s production and operations showed a tendency to steadily improve and its operating results met expectations.(1) Market Reviewss Crude Oil MarketIn the first half of 2013, the crude oil supply and demand were relatively balanced, the global crude oil inventory increased and international oil prices had dropped slightly. The price spread between West Texas Intermediate (“WTI”) crude oil and North Sea Brent crude oil tended to narrow. The average price for WTI crude oil was US$94.17 per barrel, whilst the average price for North Sea Brent crude oil was US$107.50 per barrel, representing a decrease of 4.06% and 5.38% respectively as compared with the same period in 2012. According to relevant information, China’s crude oil output was 103 million tons in the first half of 2013, representing an increase of 3.2% as compared with the same period in 2012.ss Refined Products MarketIn the first half of 2013, the domestic consumption of gasoline increased relatively quickly, whilst the consumption of diesel (closely associated with industrial and agricultural production) decreased. The ratio of diesel consumption to gasoline consumption was the lowest in recent years. The inventory of refined products maintained a relatively high level.According to relevant information, in the first half of 2013, the domestic quantity of processed crude oil amounted to 217 million tons, representing an increase of 6.6% as compared with the same period in 2012, and the domestic output of refined products amounted to 134 million tons, representing an increase of 6.0% as compared with the same period in 2012. Specifically, the gasoline output and the diesel output increased by 14.8% and 0.1% respectively as compared with the same period in 2012. The apparent consumption of refined products amounted to 127 million tons, representing an increase of 4.0% as compared with the same period in 2012, among which, the apparent consumption of gasoline increased by 12.2% and the apparent consumption of diesel dropped by 1.7% as compared with the same period in 2012. In the first half of 2013, the PRC government made six adjustments to the prices of domestic gasoline and diesel products, and the prices of reference gasoline and diesel dropped, in aggregate, by RMB305 per ton and RMB310 per ton respectively. The price trend of domestic refined products was broadly in line with that of oil prices in the international markets.ss Chemical Products MarketIn the first half of 2013, due to the sluggish global economic growth, China’s structural transformation of

014 domestic economy and weak exports, the market demand for chemical products remained weak and the supply of main chemical products exceeded the demand, resulting in a relatively significant drop in prices. The prices of some chemical products hit a record low.ss Natural Gas MarketIn the first half of 2013, domestic natural gas supply increased steadily while consumption grew even faster. The PRC experienced certain shortages in the supply of natural gas.According to relevant information, the domestic output of natural gas in the first half of the year was 58.8 billion cubic metres, representing an increase of 9.0% as compared with the same period in 2012. Imports of natural gas (including liquefied natural gas (“LNG”)) amounted to approximately 24.7 billion cubic metres, representing an increase of 24.6% as compared with the same period in2013 INTERIM REPORT2012. The apparent consumption of natural gas was 81.5 billion cubic metres, representing an increase of 13.1% as compared with the same period in 2012.(2) Business Reviewss Exploration and ProductionDomestic Exploration OperationsIn the first half of 2013, the Group continued to implement the “Peak Growth in Oil and Gas Reserves” Program, strengthened pre-exploration and venture exploration and pushed forward the exploration of tight oil and gas. Important achievements were made in Gaoshiti-Moxi in Sichuan Basin and Jiyuan in Erdos Basin, and important discoveries were made in Tarim Basin, Junggar Basin, Bohai Bay Basin, Songliao Basin and Qaidam Basin. The Group’s domestic oil and gas reserves continued to increase steadily.

015 Domestic Development and Production Operations In the first half of 2013, the Group actively transformed the mode of oilfields development. It continued to carry out water injection projects, took further actions to push forward secondary development and important development experiments and accelerated the capacity building in such oil and gas fields as those in Daqing, Changqing and Xinjiang, which further strengthened the foundation for oilfields development. The overall production of crude oil remained stable with an output of 407.5 million barrels, representing an increase of 1.8% as compared with the same period in 2012. In the first half of 2013, the Group focused its natural gas production on key gas areas and projects and pushed forward the capacity building in key gas areas such as Longwangmiao, Sulige, Dabei and Keshen, the Group’s natural gas output amounted to 1,332.8 billion cubic feet, representing an increase of 8.2% as compared with the same period in 2012. Overseas Oil and Gas Operations In the first half of 2013, facing difficulties such as the complex and capricious geopolitical environment and policy adjustments in resource-rich countries, the Group strengthened overall planning and coordination, carried out oil and gas exploration in a well-organised manner and accelerated capacity building for key projects for its overseas oil and gas operations, achieving an oil and natural gas equivalent output of 67.5 million barrels. Such output represented an increase of 8.0% as compared with the same period in 2012, accounting for 9.7% of the Group’s aggregate oil and natural gas equivalent output, and reflected a steadily-growing contribution to the Group. The Group made new achievements in project development, acquiring from ConocoPhillips Company certain interest in the offshore natural gas project and on-shore shale gas project in west Australia and acquiring from BHP Billiton Ltd. all the interest it held in the Browse project in west Australia. In the first half of 2013, the oil and gas output of the Group increased steadily. The Group recorded a crude oil output of 464.2 million barrels, representing an increase of 2.6% as compared with the same period in 2012, a marketable natural gas output of 1,397.5 billion cubic feet, representing an increase of 8.1% as compared with the same period in 2012, and an oil and natural gas equivalent output 697.2 million barrels, representing an increase of 4.4% as compared with the same period in 2012. Summary of Operations of the Exploration and Production Segment Unit First half of 2013 First half of 2012 Changes (%) Crude oil output Million barrels 464.2 452.4 2.6 Marketable natural gas output Billion cubic feet 1,397.5 1,292.4 8.1 Oil and natural gas equivalent output Million barrels 697.2 667.9 4.4 Note: Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels and 1 cubic metre of natural gas = 35.315 cubic feet. Refining and Chemicals In the first half of 2013, for its refining and chemical operations, the Group adhered to the principles of market orientation and profitability, reasonably arranged processing overwork load, scientifically arranged maintenance of production facilities, improved the steady operation of production facilities, continued to optimise resources allocation and products structure and steadily increased the proportion of high-profitability products. The Group

016 processed 499.0 million barrels of crude oil and produced 45.139 million tons of gasoline, kerosene and diesel, representing an increase of 1.9% and 3.0% as compared with the same period in 2012 respectively. Facing a continued sluggish market, the Group strengthened the connection between production and sales and sold 13.673 million tons of chemical products, representing an increase of 13.4% as compared with the same period in 2012.2013 INTERIM REPORT In the first half of 2013, the Group made new progress in the construction of key projects. The auxiliary project for processing sulphur oil of Guangxi Petrochemical and the fertiliser project of Ningxia Petrochemical started equipment installation. The construction of the projects of Sichuan Petrochemical, Guangdong Petrochemical and Huabei Petrochemical continued to proceed. The quality upgrading project of refined products was carried out in full scale. Summary of Operations of the Refining and Chemicals Segment Unit First half of 2013 First half of 2012 Changes (%) Processed crude oil Million barrels 499.0 489.7 1.9 Gasoline, kerosene and diesel output ’000 ton 45,139 43,826 3.0 of which: Gasoline ’000 ton 14,701 13,119 12.1 Kerosene ’000 ton 1,834 1,545 18.7 Diesel ’000 ton 28,604 29,162 (1.9) Refining yield % 93.8 93.8 - Ethylene ’000 ton 2,060 1,761 17.0 Synthetic resin ’000 ton 3,357 2,937 14.3 Synthetic fibre raw materials and polymers ’000 ton 696 844 (17.5) Synthetic rubber ’000 ton 364 310 17.4 Urea ’000 ton 2,103 2,374 (11.4) Note: Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels. Marketing Domestic OperationsIn the first half of 2013, in spite of the challenges of weak demand and dropping price for refined products in the domestic market, the Group managed to operate its marketing business in a steady and orderly manner by continuing to optimise resources allocation, flexibly organising marketing activities and focusing on end customers and the sales of high value-added products. The domestic sales of gasoline, kerosene and diesel amounted to 57.342 million tons, representing an increase of 5.3% as compared with the same period in 2012. The sales of high-grade gasoline and aviation kerosene grew rapidly. The fuel oil and lubricant businesses continued to develop steadily. The total number of operating service stations exceeded 20,000, and the Group further optimised its sales network and enhanced its ability to cope with market changes. International Trading Operations In the first half of 2013, the international trading operations of the Group continued to develop at a relatively fast pace. The oil and gas operating hub in Asia continued to improve its operations, resulting in clearly enhanced competitiveness and market standing in the region. The oil and gas operating hub in Europe was further integrated and the sales volume and performance in continental Europe grew against the general slow-down tendency of the

017 region. The construction of the oil and gas operating hub in America was accelerated and the trade volume in this region continued to increase. The Group sold a total of 79.392 million tons of gasoline, kerosene and diesel in the first half of 2013, representing an increase of 8.7% as compared with the same period in 2012. Natural Gas and Pipeline In the first half of 2013, the Group coordinated and balanced the utilisation of domestic and overseas resources and enhanced the domestic production and supply potentials for its natural gas business. The Group improved the peak shaving capabilities of gas and LNG storages, optimised the operation of its pipeline network, strengthened the management of the demand side, and pushed forward the development of new pipelines and high-profitability markets in a well-organised way, thus ensuring sales profitability. In the first half of 2013, the construction of key oil and gas pipelines progressed in a steady manner. The Second West-East Pipeline began to supply gas to Guangxi and Hong Kong. The Horgos-Urumqi section of the west section of the Third West-East Pipeline was put into operation. The Nanbu-Tongliang section of the Zhongwei-Guiyang Pipeline was joined up. The construction of Shandong Pipeline Network, the Jinzhou-Zhengzhou refined products pipeline and the Tangshan LNG was carried out as planned. Meanwhile, the Group innovated a pipeline joint venture model. It contributed certain pipeline net assets and operations to a joint venture and introduced capital such as insurance and industrial funds, which was of great importance for the Group to achieve sustainable growth of assets and further development of its oil and gas business.

018 2. Management Discussion and Analysis (1) The financial data set out below is extracted from the interim condensed consolidated financial statements of the Group prepared under IFRSss Consolidated Operating Results In the first half of 2013, the Group achieved a turnover of RMB1,101,096 million, representing an increase of 5.2% as compared with the same period in 2012. Profit attributable to owners of the Company was RMB65,522 million, representing an increase of 5.6% as compared2013 INTERIM REPORT with the same period in 2012. Basic earnings per share were RMB0.36, representing an increase of RMB0.02 as compared with the same period in 2012.Tu r n o v e r Tu r n o v e r i n c r e a s e d b y 5 . 2 % t o RMB1,101,096 million for the first half of 2013 from RMB1,046,661 million for the first half of 2012. This was primarily due to the increase in the sales volume of the Group’s major products including crude oil, natural gas, gasoline and diesel and the increase in the selling price of natural gas. The table below sets out the external sales volume and average realised prices for the major products sold by the Group in the first half of 2013 and 2012 and their respective percentages of change during these periods:Sales Volume (’000 ton) Average Realised Price (RMB/ton) Percentage Percentage First half of First half of of change First half of First half of of change 2013 2012 (%) 2013 2012 (%)Crude oil(1) 39,109 33,047 18.3 4,559 4,803 (5.1)Natural gas (100 million cubic metres,RMB/’000 cubic metres) 478.77 436.21 9.8 1,151 1,108 3.9Gasoline 26,523 22,923 15.7 7,760 8,093 (4.1)Diesel 46,168 44,672 3.3 6,791 7,135 (4.8)Kerosene 6,701 5,473 22.4 6,052 6,505 (7.0)Heavy oil 6,184 3,887 59.1 4,523 4,829 (6.3)Polyethylene 1,757 1,444 21.7 9,354 8,979 4.2Lubricant 886 1,040 (14.8) 9,739 9,344 4.2(1) The crude oil listed above represents all the external sales volume of crude oil of the Group.Operating Expenses Operating expenses increased by 4.7% to RMB1,001,236 million for the first half of 2013 from RMB956,042 million for the first half of 2012, of which:Purchases, Services and Other Purchases, services and other increased by 9.8% to RMB722,920 million for the first half of 2013 from RMB658, 111 million for the first half of 2012. This was primarily due to (i) increases in purchase cost as a result of larger trading volumes in the oil products, and (ii) increases in purchase cost of natural gas imports from Central Asia and LNG imports to expand the natural gas market and satisfy the increasing demand for natural gas inthe domestic market.E m p lo y e e C o m p e n s a t io n C o s t s E m p l o y e e compensation costs for the first half of 2013 were RMB55,659 million, representing an increase of 12.2% from RMB49,612 million for the first half of 2012. Excluding factors such as the expansion of the production and operation scale and the increase in the number of employees, employee compensation costs represented an increase of 8.7% as compared with the same period in 2012. Such increase was primarily due to the fact that the Group adjusted the wages of frontline employees as appropriate based on the increase

019 in Consumer Price Index (“CPI”), social average wages and operating results, and that the Group increased social insurance contributions in line with the increase in the social insurance base as stipulated by local governments.E x p lo r a t io n E x p e n s e s E x p l o r a t i o n e x p e n s e s decreased by 3.2% to RMB13,465 million for the first half of 2013 from RMB13,905 million for the first half of 2012. This was primarily due to the Group’s continuous implementation of the “Peak Growth in Oil and Gas Reserves” Program and the rise in the success rate of test pits.Depreciation, Depletion and Amortisation Depreciation, depletion and amortisation increased by 2.5% to RMB75,893 million for the first half of 2013 from RMB74,046 million for the first half of 2012. This was primarily due to the increase in the average carrying value of fixed assets and the average net book value of oil and gas properties, causing an increase in depreciation and depletion.Selling, General and Administrative Expenses Selling, general and administrative expenses increased by 8.6% to RMB36,545 million for the first half of 2013 from RMB33,645 million for the first half of 2012. This was primarily due to the increase in technical service expenses, lease expenses and transportation expenses during the reporting period as compared with the same period in 2012.Taxes other than Income Taxes Taxes other than income taxes decreased by 3.4% to RMB124,364 million for the first half of 2013 from RMB128,686 million for the first half of 2012. This was primarily due to the fact that, as a result of the reduced price of crude oil during the first half of 2013, the crude oil special gain levy payable by the Group decreased from RMB42,612 million for the first half of 2012 to RMB37,073 million for the first half of 2013.Other Income, net Other income, net increased by RMB25,647 million to RMB27,610 million for the first half of 2013, compared with other income, net of RMB1,963 million for the first half of 2012. This was primarily because the Group recognised the gain on investment of certain pipeline net assets and operations during the reporting period.Profit from Operations Profit from operations was RMB99,860 million for the first half of 2013, representing an increase of 10.2% from RMB90,619 million for the first half of 2012.Net Exchange Loss Net exchange loss increased by 128.0% to RMB440 million for the first half of 2013 from RMB193 million for the first half of 2012. The increase was mainly due to the fluctuations in the exchange rate between Renminbi and the US dollar during the reporting period.Net Interest Expenses Net interest expenses increased by RMB2,445 million to RMB10,018 million for the first half of 2013 from RMB7,573 million for the first half of 2012. The increase was mainly due to a rise in interest-bearing debts of the Group to finance production, operations, investments and construction.Profit before Income Tax Expense Profit before income tax expense was RMB93,761 million for the first half of 2013, representing an increase of 7.0% from RMB87,592 million for the first half of 2012.Income Tax Expense Income tax expense increased by 19.4% to RMB21,204 million for the first half of 2013 from RMB17,763 million for the first half of 2012. The increase was primarily due to an increase in the taxable profit for the reporting period.Profit for the period Profit amounted to RMB72,557 million for the first half of 2013, representing an increase of 3.9% from RMB69,829 million for the first half of 2012.Profit attributable to non-controlling interests Profit attributable to non-controlling interests was RMB7,035 million for the first half of 2013, representing a decrease of 9.8% from RMB7,803 million for the first half of 2012. This was primarily due to the decrease in the profits of certain overseas subsidiaries of the Group as a result of the drop in the international crude oil price.Profit attributable to owners of the Company Profit attributable to owners of the Company amounted to

020 RMB65,522 million for the first half of 2013, representing an increase of 5.6% from RMB62,026 million for the first half of 2012.ss Segment ResultsExploration and ProductionTurnover The average realised crude oil price in the first half of 2013 was US$100.49 per barrel, representing a decrease of 6.9% from US$107.98 per barrel for the first half of 2012. As a result of the drop in the price of crude oil, the turnover of the Exploration and Production segment was RMB385,456 million, representing a decrease of 1.8% from RMB392,460 million for the first half of 2012.Operating Expenses Operating expenses of the Exploration and Production segment increased by 2.9% to RMB286,649 million for the first half of 2013 from RMB278,668 million for the first half of 2012. Of which, purchases, services and other increased by RMB6,387 million, and depreciation, depletion and amortisation increased by RMB3,671 million as compared with the same period in 2012.In the first half of 2013, the Group’s oil and gas lifting cost was US$12.29 per barrel, representing an increase of 9.1% from US$11.27 per barrel in the first half of 2012. Excluding the effect of exchange rate movements, oil and gas lifting cost increased by 7.9% as compared with the same period in 2012. This was primarily due to an increase in such basic operational expenses as materials, fuels and power as compared with the same period in 2012.Profit from Operations In the first half of 2013, as a result of the fall in the price of crude oil and the increase in costs, the realised profit from operations of the Exploration and Production segment decreased by 13.2% to RMB98,807 million for the first half of 2013 from RMB113,792 million for the first half of 2012. The Exploration and Production segment remained a key profit contributor to the Group.2013 INTERIM REPORTRefining and ChemicalsTurnover The turnover of the Refining and Chemicals segment in the first half of 2013 was RMB436,437 million, which was roughly the same as the turnover of RMB433,149 million for the first half of 2012.Operating Expenses Operating expenses of the Refining and Chemicals segment decreased by 2.1% to RMB452,298 million for the first half of 2013 from RMB462,024 million for the first half of 2012. Of which, purchases, services and other decreased by RMB13,055 million as compared with the same period in 2012. This was primarily due to the decrease in the purchase cost of crude oil as a result of the drop in the international crude oil price.In the first half of 2013, the cash processing cost of refineries was RMB154.41 per ton, representing an increase of 2.0% as compared with the same period in 2012. This was primarily due to an increase in fuel and power prices as compared with the same period in 2012.Profit from Operations In the first half of 2013, the State promulgated the new pricing mechanism for refined products. The Group successfully reduced losses of the Refining and Chemicals segment to a significant extent as compared with the same period in 2012 by taking advantage of this opportunity, adhering to the principles of market orientation and profitability and striving to optimise resources allocation and products structure. In the first half of 2013, the Refining and Chemicals segment incurred a loss from operations amounting to RMB15,861 million, representing a decrease of RMB13,014 million from RMB28,875 million for the first half of 2012, of which a loss of RMB7,769 million was attributable to the refining operations, representing a decrease in loss of RMB15,539 million as compared with the same period in 2012, and a loss of RMB8,092 million was attributable to the chemicals operations, representing an increase in loss of RMB2,525 million as compared with the same period in 2012, which was mainly due to the weak market for chemicals.

021 MarketingTurnover The turnover of the Marketing segment increased by 4.8% to RMB943,248 million for the first half of 2013 from RMB900,111 million for the first half of 2012, which was primarily due to an increase in operating income from the oil products trading business as a result of the steady growth of the Group’s overseas trade.Operating Expenses Operating expenses of the Marketing segment increased by 5.6% to RMB939,820 million for the first half of 2013 from RMB890,110 million for the first half of 2012. Of which, purchases, services and other increased by RMB48,744 million as compared with the same period in 2012, which was primarily due to an increase in the expenses relating to the oil products trading business as a result of the expansion of the Group’s overseas trade.Profit from Operations In the first half of 2013, as a result of the slowdown of the domestic and international macro-economy and the weak demand for refined products,profit from operations of the Marketing segment amounted to RMB3,428 million, representing a decrease of 65.7% from RMB10,001 million for the first half of 2012.Natural Gas and PipelineTurnover The turnover of the Natural Gas and Pipeline segment increased by 7.7% to RMB105,583 million for the first half of 2013 from RMB98,062 million for the first half of 2012, which was primarily due to: (i) the increase in the sales and transmission volume of natural gas; and (ii) the increase in the sales revenue of city gas and other businesses.Operating Expenses Operating expenses of the Natural Gas and Pipeline segment decreased by 13.2% to RMB83,701 million for the first half of 2013 from RMB96,425 million for the first half of 2012. This was primarily due to the increase of other income as a result of the gain realised on the Group’s contribution of certain pipeline net assets and operations into a joint venture company during the reporting period.

022 Profit from Operations The Natural Gas and Pipeline segment effectively balanced the two kinds of resources of domestic gas and imported gas, strengthened external cooperation, introduced strategic investors, scientifically controlled the pipeline transmission costs and strived to increase the price and sales volume in the first half of 2013. These resulted in achieving an operating profit of RMB21,882 million, representing an increase of RMB20,245 million from RMB1,637 million for the first half of 2012. In the first half of 2013, the Natural Gas and Pipeline segment recorded a loss of RMB15,851 million for the sales of 12.666 billion cubic metres of natural gas imported from Central Asia and recorded a loss of RMB11,631 million for the sales of 3.994 billion cubic metres of imported LNG. Excluding the refund of the import value-added tax by the State for importing LNG totalling RMB3,960 million, the sales of imported gas recorded a loss of RMB23,522 million.In the first half of 2013, the Group’s overseas operations(note) achieved a turnover of RMB368,064 million or2013 INTERIM REPORT33.4% of the Group’s total turnover. Profit before income tax expense of overseas operations was RMB12,080 million or 12.9% of the Group’s profit before income tax expense.Note:The four operating segments of the Group are namely Exploration and Production, Refining and Chemicals, Marketing as well as Natural Gas and Pipeline. Overseas operations do not constitute a separate operating segment of the Group. The financial data of overseas operations are included in the financial data of the respective operating segments mentioned above.ss Cash FlowsAs at June 30, 2013, the primary sources of funds of the Group were cash from operating activities and short-term and long-term borrowings. The funds of the Group were mainly used for operating activities, capital expenditures and repayment of short-term and long-term borrowings.The table below sets forth the cash flows of the Group for the first half of 2013 and 2012, respectively, and the amount of cash and cash equivalents as at the end of each reporting period:Period of six months ended June 302013 2012RMB million RMB millionNet cash flows from operating activities 102,057 48,006Net cash flows used for investing activities (98,803) (147,811)Net cash flows from financing activities 104,809 111,308Translation of foreign currency (1,366) 676Cash and cash equivalents at end of the period 150,092 73,351Net Cash Flows From Operating ActivitiesThe net cash flows of the Group from operating activities for the first half of 2013 were RMB102,057 million, representing an increase of 112.6% from RMB48,006 million for the first half of 2012. This was mainly due to a combination of effects brought about by the increase of profit during the reporting period as compared with that of the same period in 2012 and the change in working capitalsuch as inventory and other account payables, as a result of the strengthening of management and the optimisation of production and operation by the Group. As at June 30, 2013, the Group had cash and cash equivalents of RMB150,092 million. The cash and cash equivalents were mainly denominated in Renminbi (approximately 85.8% were denominated in Renminbi, approximately 9.8% were denominated in US Dollars, approximately 1.3% were

023 denominated in Hong Kong Dollars and approximately 3.1% were denominated in other currencies).Net Cash Flows Used For Investing ActivitiesThe net cash flows of the Group used for investing activities for the first half of 2013 were RMB98,803 million, representing a decrease of 33.2% from RMB147,811 million for the first half of 2012. The decrease in cash flows used for investing activities was primarily due to a combination of effects brought about by the inflow of capital from the Group’s investment in a joint venture with certain pipeline net assets and operations as the Group strengthened external cooperation and introduced strategic investors, and thedecrease in new term deposits with a maturity of more than three months.Net Cash Flows From Financing ActivitiesThe net cash flows of the Group from financing activities for the first half of 2013 were RMB104,809 million, representing a decrease of 5.8% from RMB111,308 million for the first half of 2012. This was primarily due to a decrease in new net borrowings during the reporting period as compared with the same period in 2012, as a result of the strengthening of the management of interest-bearing borrowings and optimising of the borrowings structure by the Group.The net borrowings of the Group as at June 30, 2013 and December 31, 2012, respectively, were as follows:As at June 30, 2013 As at December 31, 2012RMB million RMB millionShort-term borrowings (including current portionof long-term borrowings) 184,197 151,247Long-term borrowings 366,398 293,774Total borrowings 550,595 445,021Less: Cash and cash equivalents 150,092 43,395Net borrowings 400,503 401,626The following table sets out the remaining contractual maturities of borrowings as at June 30, 2013 and December 31, 2012, respectively, which are based on contractual undiscounted cash flows including principal and interest, and the earliest contractual maturity date:As at June 30, 2013 As at December 31, 2012RMB million RMB millionWithin 1 year 203,723 166,089Between 1 and 2 years 93,111 92,311Between 2 and 5 years 190,444 162,992After 5 years 145,947 83,806633,225 505,198

024 Of the total borrowings of the Group as at June 30, 2013, approximately 71.2% were fixed-rate loans and approximately 28.8% were floating-rate loans. Of the total borrowings as at June 30, 2013, approximately 79.4% were denominated in Renminbi, approximately 19.8% were denominated in US Dollars and approximately 0.8% were denominated in other currencies.As at June 30, 2013, the gearing ratio of the Group (gearing ratio = interest-bearing debts/(interest-bearing debts + total equity)) was 30.9% . The scale of interest-bearing borrowings was within a controlled range.2013 INTERIM REPORTss Capital ExpendituresFor the first half of 2013, capital expenditures of the Group were RMB108,207 million, representing a decrease of 3.1% from RMB111,678 million for the first half of 2012, which were primarily used for oil and gas explorations and development and the construction of pipelines with strategic importance and trunk pipeline networks. The following table sets out the capital expenditures incurred by the Group for the first half of 2013 and for the first half of 2012 and the estimated capital expenditures for each of the business segments of the Group for the whole year of 2013.For the first half of 2013 For the first half of 2012 Estimates for 2013RMB million (%) RMB million (%) RMB million (%)Exploration and Production* 76,446 70.65 69,006 61.79 239,600 67.49Refining and Chemicals 4,440 4.10 9,279 8.31 32,400 9.13Marketing 1,625 1.50 2,495 2.23 14,300 4.03Natural Gas and Pipeline 25,160 23.25 30,768 27.55 65,700 18.51Head Office and Other 536 0.50 130 0.12 3,000 0.84Total 108,207 100.00 111,678 100.00 355,000 100.00* If investments related to geological and geophysical exploration costs were included, the capital expenditures and investments for the Exploration and Production segment for the first half of 2012 and the first half of 2013, and the estimates for the same for the year of 2013 would be RMB75,101 million, RMB83,311 million and RMB250,600 million, respectively.Exploration and ProductionCapital expenditures for the Exploration and Production segment amounted to RMB76,446 million for the first half of 2013. The expenditures were primarily used for oil and gas exploration and development conducted both within and outside the PRC. The Group continued to implement the “Peak Growth in Oil and Gas Reserves” Program for domestic exploration and devoted more efforts to key oil and gas regions such as Songliao Basin, Erdos Basin, Tarim Basin, Sichuan Basin and Bohai Bay Basin. For its development activities, the Group focused on maintainingthe steady annual output of 40 million tons of crude oil from Daqing, increasing the annual oil and natural gas equivalent output to 50 million tons from Changqing, as well as increasing the output from oil and gas fields such as those in Xinjiang and Tarim. For its overseas operations, the Group focused on oil and gas exploration and development in joint cooperation areas in Central Asia, the Middle East, America, Africa and the Asia Pacific region.The Group anticipates that capital expenditures for the Exploration and Production segment for 2013 would amount to RMB239,600 million.

025 Refining and ChemicalsCapital expenditures for the Refining and Chemicals segment amounted to RMB4,440 million for the first half of 2013, of which, approximately RMB2,713 million was used for the construction and expansion of refining facilities. This mainly included the construction of large refining projects such as Guangdong Petrochemical and Huabei Petrochemical. Approximately RMB1,727 million was used for the construction and expansion of chemical facilities. This mainly included construction of large ethylene projects such as Sichuan Petrochemical and Fushun Petrochemical.The Group anticipates that capital expenditures for the Refining and Chemicals segment for 2013 will amount to RMB32,400 million.MarketingCapital expenditures for the Marketing segment amounted to RMB1,625 million for the first half of 2013,which were used primarily for the construction and expansion of the sales network for high-profitability markets and the construction of international trade centres and facilities.The Group anticipates that capital expenditures for the Marketing segment for 2013 will amount to RMB14,300 million.Natural Gas and PipelineCapital expenditures for the Natural Gas and Pipeline segment amounted to RMB25,160 million for the first half of 2013, which were used primarily for the construction of key oil and gas transmission pipelines such as those of the Third West-East Gas Pipeline, the Third Shaanxi-Beijing Gas Pipeline, Zhongwei-Guiyang Gas Pipeline, associated LNG projects and city gas facilities.The Group anticipates that capital expenditures for the Natural Gas and Pipeline segment for 2013 will amount to RMB65,700 million.

026 Head Office and OtherCapital expenditures for the Head Office and Other segment for the first half of 2013 were RMB536 million, which were primarily used for scientific research activities2013 INTERIM REPORTand construction of information system.The Group anticipates that capital expenditures for the Head Office and Other segment for 2013 will amount to RMB3,000 million.(2) The financial data set out below is extracted from the consolidated financial statements of the Group prepared under CASss Principal operations by segment under CASChanges in costIncome from Cost of Changes in income of principalprincipal principal from principal operations overoperations for operations operations over the the same period Increase/the first half of for the first Gross same period of the of the preceding (decrease) in2013 half of 2013 margin* preceding year year gross margin(PercentageRMB million RMB million (%) (%) (%) points)Exploration and Production 378,551 201,143 30.6 (1.8) 6.5 (3.3)Refining and Chemicals 432,845 372,064 1.0 0.7 (3.2) 3.3Marketing 937,037 909,175 2.8 4.7 5.7 (0.9)Natural Gas and Pipeline 104,340 107,241 (3.6) 7.5 13.2 (5.2)Head Office and Other 156 45—(3.7) (44.4) -Inter-segment elimination (770,292) (770,281) — —Total 1,082,637 819,387 13.2 5.2 9.1 (1.9)* Gross margin = Profit from principal operations / Income from principal operationsDuring the reporting period, the total amount of connected transactions from sales of products and provision of services by the Group to CNPC and its subsidiaries was RMB44,392 million.ssPrincipal operations by region under CASChanges overthe same period of theFirst half of 2013 First half of 2012 preceding yearOperating income RMB million RMB million (%)Mainland China 733,032 713,942 2.7Other 368,064 332,719 10.6Total 1,101,096 1,046,661 5.2

027 Principal subsidiaries, associates and jointly controlled entities of the GroupAmountAmount of of totalRegistered capital Shareholding total assets liabilities Net profitCompany name RMB million % RMB million RMB million RMB millionDaqing Oilfield Company Limited 47,500 100.00 263,060 69,418 30,623CNPC Exploration and Development CompanyLimited 16,100 50.00 146,867 41,923 7,612PetroChina Hong Kong Limited HK$7,592 million 100.00 90,810 37,352 3,909PetroChina International Investment CompanyLimited 31,314 100.00 89,796 62,877 (2,295)PetroChina International Co., Ltd 14,000 100.00 162,340 128,963 1,737PetroChina Northwest United PipelinesCompany Limited 62,500 52.00 64,674 1,648 545Dalian West Pacific Petrochemical Co., Ltd US$258 million 28.44 7,762 11,679 (519)China Marine Bunker (PetroChina) Co., Ltd 1,000 50.00 12,880 10,359 53China Petroleum Finance Co., Ltd 5,441 49.00 613,230 580,987 1,954Arrow Energy Holdings Pty Ltd. AUD 2 50.00 47,571 18,193 (2,187)PetroChina United Pipelines Company Limited (1) 40,000 50.00 83,340 2,753 566Notes:(1) PetroChina United Pipelines Company Limited was established in June 2013, with a registered capital of RMB40.0 billion, of which the Group holds a 50% equity interest.(2) For details of the nature of business and net profit of principal subsidiaries, associates and jointly controlled entities of the Group, please refer to Note 6 and Note 13 of the financial statements of the Group prepared under CAS. 3. Business Prospects for the Second Half of the YearThe recovery of the global economy will remain highly uncertain in the second half of 2013. The supply in the international oil market may slightly exceed the demand. The crude oil price is likely to continue to fluctuate at high levels. For the second half of the year, it is expected that there maybe some difficulties for the rebound of the domestic economy. The likelihood of a significant improvement in the conditions of the petroleum and petrochemical markets will be low. The Group will continue to enhance its assessment of the situation, prioritise the development of its domestic upstream business, speed up the development of its natural gas operations, promote the scale and highquality development of its overseas operations, effectively develop its refining and chemicals business at a moderate pace, develop its marketing business in a steady and orderly manner, continue to enhance the Group’s core competitiveness and strive to accomplish its production targets for the year.In respect of exploration and production, the Group will continue to uphold its strategy of resources. Through construction of “Three Daqings” and the south-western natural gas industrial bases, the Group will place emphasis on the “Peak Growth in Oil and Gas Reserves” Program

028 and key tasks such as oil and gas fields fine water injection projects and production capacity building. The Group will also focus on the pre-exploration at the target areas and the evaluation of major projects. Further, the Group will promote the exploration of tight oil and other unconventional oil and gas with an aim to continuously expand its exploration outcomes.In respect of refining and chemicals operations, the Group will deepen its market research and further optimise its resources allocation, products structure, production organisation and facility operation on the condition of steady and safe operation. The Group will continue to increase its production of high-grade gasoline, aviation kerosene and other refined products together with other marketable and high value-added chemical products. The Group will also accelerate the upgrade of the quality of oil products so as to ensure that all gasoline for automobiles will meet the China IV or higher standards by the end of 2013.In respect of the sales of refined products, the Group will strengthen the coordination between production and marketing, tighten its logistic management and actively adapt to the new pricing mechanism and the changes in the market. By optimising the sales structure and inventory operation, the Group will strengthen its retail operations, expand its direct marketing capability and increase the sales of high value-added products. In addition, the Group will also optimise the sales and distribution network in an orderly pace with focus on high-profitability service stations2013 INTERIM REPORTand integrated oil and gas stations with an aim to improve operational efficiency and increase sales profitability.In respect of natural gas and pipelines operations, the Group will actively promote the rational allocation of resources across markets. The Group will strike a balance of resources among domestic gas, imported gas and LNG, adjust the operation of pipeline networks, optimise the structure of gas consumption and use its best efforts to increase sales profitability. On this basis, the Group will speed up the execution of the sale and purchase contracts for new pipelines and enhance the healthy development of downstream businesses such as branch pipelines and LNG plants.In respect of overseas operations, the Group will continue to strengthen overseas oil and gas cooperation as well as enhance and expand its international business achievements. The Group will also strengthen its venture exploration at key exploration areas, promote the project of Arrow Energy of Australia, the shale gas and oil sand projects in Canada and other unconventional projects. Further, the Group will build up and improve the three oil and gas operating hubs, facilitate the effective operation of the global trade and marketing network, diversify its trading methods, explore high-profitability markets and strengthen its risk control. Through the synergy brought by the integration of trade, processing, storage and transport operations, the Group will strive to expand its business scale and increase its profitability.By order of the BoardZhou JipingChairmanBeijing, PRCAugust 22, 2013

029 SIGNIFICANT EVENTS 1. Governance of the Company .During the reporting period, the Company had been operating in accordance with domestic and overseas regulatory requirements. With reference to the status quo of the Company and in accordance with the Articles of Association of the Company (the “Articles of Association”), related laws, regulations and listing rules, the Company has been constantly adopting, improving and effectively implementing work systems and related work processes for the Board and its various specialised committees. During the reporting period, the internal management operations of the Company had been further standardised. The level of the Company’s corporate governance had been continually enhanced through the coordination and checks and balances among the Shareholders’ General Meeting, the Board and its respective specialised committees, the Supervisory Committee and the management led by the President of the Company together with the effective operations of the internal control systems. 2. Compliance with the Corporate Governance Code For the six months ended June 30, 2013, the Company has complied with all the code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the “Listing Rules”), except that:Code provision A.2.1 provides that the roles of chairman and chief executive should be separate and should not be performed by the same individual. Due to change of work arrangements, Mr Jiang Jiemin tendered his resignation and ceased to hold the positions of the Chairman of the Board and the Director of the Company withSIGNIFICANT EVENTS 029immediate effect. Pursuant to the relevant provisions of the PRC Company Law and the Articles of Association, Mr Zhou Jiping, the Vice Chairman of the Board, started to perform the duties and powers of the Chairman of the Board from the same day. An extraordinary meeting of the Board was held on April 25, 2013 by way of written resolution, and Mr Zhou Jiping was elected as the Chairman of the Board, taking effect from the date of the Board resolution. Mr Zhou Jiping served as the Vice Chairman of the Board and President of the Company before he was elected as Chairman of the Board. An extraordinary meeting of the Board was held on July 28, 2013 by way of written resolution, and Mr Wang Dongjin was appointed as the President of the Company. The appointment took effect from the date of the Board resolution. Mr Zhou Jiping ceased to be the President of the Company from the same day, and only remained as the Chairman of the Board.Code provision A.5.1 provides that listed issuers should establish a nomination committee. After prudent consideration of the laws and regulations of the places where the shares of the Company are listed, the background .V]LYUHUJL_ of the industry to which the Company belongs as well as the current corporate structure, the Company has not set up a nomination committee as at the end of the reporting period. Nonetheless, the requirements for nomination of directors are set out in detail in the Articles of Association. Shareholders holding three percent or above of the voting shares of the Company may put forward an extraordinary written proposal to the general meeting in relation to the intention to nominate a candidate for Director and the candidate’s willingness to accept such nomination prior to such meeting. Directors of the Company shall be elected at general meeting of the Company for a term of office of not more than three years. Upon expiration of his term, each Director shall be entitled to be re-elected.

030 3. Formulation and Implementation of the Cash Dividend PolicySIGNIFICANT EVENTS2013 INTERIM REPORT4. Final Dividend for 2012 and Interim Dividend for 2013 and Closure of Register of Members Dividend PolicySince its listing in Hong Kong in 2000, the Company has been in strict conformance with the relevant undertakings in its Hong Kong listing prospectus, with a consistent dividend policy adopted. Currently, the Company pays dividends to its shareholders on the basis of 40% to 50% of its annual net profit. The Company’s consistent and proactive dividend policy is well received by shareholders as it preserves the interests of small to medium sized shareholders.To further protect the interests of small to medium sized shareholders and with the approval of the general meeting held on May 23, 2013, the Company made certain amendments to dividend distribution provisions in the Articles of Association. Provisions were added regarding implementation and adjustment procedures for dividend distribution and conditions for cash dividends and clarifying that the proportion of cash dividends shall not be lower than 30% of annual net profit attributable to owners of the Company.Pursuant to the Articles of Association, the Company shall make dividend payments twice a year. Payment of final dividends shall be approved by a general meeting by way of an ordinary resolution, whilst payment of interim dividends may be approved by the Board receiving a mandate from a general meeting by way of an ordinary resolution. Over the years, the Company has been implementing the dividend policy in strict compliance with the Articles of Association and the relevant regulatory requirements.Authorised by the general meeting, the Board has approved the 2013 interim dividend at the tenth meeting of the Fifth Session of the Board, with the consent of independent Directors.(1) Final Dividend for 2012The final dividend in respect of 2012 of RMB0.13106 per share (inclusive of tax), amounting to a total of RMB23,985 million was approved by the shareholders at the annual general meeting of the Company on May 23, 2013 and was paid on July 18, 2013.(2) Interim Dividend for 2013 and Closure of Register of MembersThe Board was authorised by the shareholders to approve the distribution of an interim dividend for 2013 at the annual general meeting of the Company on May 23, 2013. The Board has resolved to declare and pay to all shareholders of the Company an interim dividend of RMB0.16110 per share (inclusive of tax) for the six months ended June 30, 2013 on the basis of a total of 183,020,977,818 shares of the Company as at June 30, 2013. The total amount of the interim dividend payable is RMB29,485 million.The interim dividend of the Company will be paid to shareholders whose names appear on the register of members of the Company at the close of trading on September 11, 2013. The register of members of H shares will be closed from September 6, 2013 to September 11, 2013 (both days inclusive) during which period no transfer of H shares will be registered. In order to qualify for the interim dividend, holders of H shares must lodge all transfer documents together with the relevant share certificates at Hong Kong Registrars Limited on or before 4:30 p.m., September 5, 2013. Holders of A shares whose names appear on the register of members of the Company

031 maintained at China Securities Depository and Clearing Corporation Limited Shanghai Branch Company at the close of trading on the Shanghai Stock Exchange in the afternoon of September 11, 2013 will be eligible for the interim dividend.In accordance with the relevant provisions of the Articles of Association, dividends payable to the shareholders of the Company shall be declared in Renminbi. Dividends payable to the holders of A shares shall be paid in Renminbi while dividends payable to the holders of H shares shall be paid in Hong Kong Dollars to be calculated on the basis of the average of the mid-point exchange rates for Renminbi to Hong Kong Dollar as announced by the People’s Bank of China for the week prior to the declaration of the interim dividend by the Board.According to the Law on Corporate Income Tax of the People’s Republic of China and the relevant implementing rules which came into effect on January 1, 2008, the Company is required to withhold corporate income tax at the rate of 10% before distributing dividends to nonresident enterprise shareholders whose names appear on the H share register of members of the Company. Any H shares registered in the name of non-individual shareholders, including HKSCC Nominees Limited, other nominees, trustees or other groups and organisations will be treated as being held by non-resident enterprise shareholders and therefore will be subject to the withholding of the corporate income tax. Any holders of H shares wishing to change their shareholder status should consult their agents or trust institutions on the relevant procedures. The Company will withhold and pay the corporate income tax strictly in accordance with the relevant laws or requirements of the relevant governmental departments and strictly based on the information that will have been registered on the Company’s H share register of members on September 11, 2013.SIGNIFICANT EVENTS 031According to the regulation promulgated by the State Administration of Taxation of the PRC (Guo Shui Han [2011] No.348), the Company is required to withhold and pay the individual income tax for individual holders of H shares and individual holders of H shares are entitled to certain tax preferential treatments according to the tax agreements between those countries where the individual holders of H shares are resident and China and the provisions in respect of tax arrangements between mainland China and Hong Kong (Macau). The Company will withhold and pay the individual income tax at the tax rate of 10% on behalf of the individual holders of H shares who are Hong Kong residents, Macau residents or residents of those countries which have agreements with China prescribing for a tax rate of 10% for individual income tax in respect of dividends. For individual holders of H shares who are residents of those countries which have agreements with China prescribing for a tax rate lower than 10% for individual income tax in respect of dividends, the Company will make applications on their behalf to seek entitlement of the relevant agreed preferential treatments pursuant to the Notice of the State Administration of Taxation in relation to the Administrative Measures on Preferential Treatment Entitled by Non-residents under Tax Treaties (Tentative) (Guo Shui Fa [2009] No. 124) + ? ?A ^533<`457 . For individual , holders of H shares who are residents of those countries which have agreements with China prescribing for a tax rate higher than 10% but lower than 20% for individual income tax in respect of dividends, the Company will withhold the individual income tax at the agreed-upon effective tax rate. For individual holders of H shares who are residents of those countries without any taxation agreements with China or those which have agreements with China prescribing for a tax rate of 20% for individual income tax in respect of dividends or other situations, the Company will withhold the individual income tax at a tax rate of 20%.

032 SIGNIFICANT EVENTS The Company will determine the country of residence of the individual holders of H shares based on the registered address as recorded in the register of members of the Company (the “Registered Address”) on September 11, 2013 and will accordingly withhold and pay the individual income tax. If the country of residence of the individual holders of H shares is not the same as the Registered Address, the individual holders of H shares shall notify the share registrar of the Company’s H shares and provide relevant supporting documents on or before 4:30 p.m., September 5, 2013 at the following address: Hong Kong Registrars Limited, 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai,2013 INTERIM REPORTHong Kong. If the individual holders of H shares do not provide the relevant supporting documents to the share registrar of the Company’s H shares within the time period stated above, the Company will determine the country of residence of the individual holders of H shares based on the Registered Address recorded on September 11, 2013. The Company will not entertain any claims arising from and assumes no liability whatsoever in respect of any delay in, or inaccurate determination of, the status of the shareholders of the Company or any disputes over the withholding and payment of tax. 5. Material Litigation, Arbitration and Events Widely Questioned by the Media The Company was not involved in any material litigation, arbitration or events that were widely questioned by the media during the reporting period. 6. Shareholding Interests of the Group in Other Companies.(1) Shareholding interests of the Group in other listed companies As at the end of the reporting period, shareholding interests of the Group in other listed companies were as follows: Unit: HK$ million Number of Book value shares held Profit as at the Changes in Initial (both at the or loss Stock Stock short Shareholding end equity during Classification Source of investment beginning and for the code name (%) of the the reporting in accounts shareholding amount the end of reporting reporting period the reporting period period) periodLong- Acquisition KUNLUN and further 135 25,758 4,708,302,133 58.38 25,758 term equityENERGY(1) shareinvestments issuanceNote: (1) The Group held the shares in Kunlun Energy Limited, a company listed on the Hong Kong Stock Exchange, through Sun World Limited, an overseas wholly-owned subsidiary of the Group.

033 (2) Shareholding interests of the Group in non-listed financial institutionsAs at the end of the reporting period, shareholding interests of the Group in other non-listed financial institutions were as follows:Unit: RMB millionNumber of Book valueshares held Profitas at the Changes inInitial (both at the or lossName of Shareholding end equity during Classification Source ofinvestment beginning and for theinvestment target (%) of the the reporting in accounts shareholdingamount the end of reportingreporting periodthe reporting periodperiod) periodLong-China Petroleum Injection of9,917 2,666,000,000 49.00 16,147 958 (186) term equityFinance Co., Ltd. capitalinvestmentsInvestmentIn June 2013, the Company established a joint venture company, PetroChina United Pipelines Co., Ltd. ( ? ) (the “JV Company”), with Taikang Asset Management Co., Ltd. ( ? ) and Beijing Guolian Energy Industry Investment Fund (). The Company contributed certain pipeline net assets and operations to the JV Company and holds a 50% equity interest in the JV Company. The other parties contributed cash and together hold the remaining 50% equity interest in the JV Company.Details of this transaction were published on the websites of the Hong Kong Stock Exchange and Shanghai Stock Exchange on June 14, 2013 and June 15, 2013, respectively. On June 18, 2013, the JV Company completed the industrial and commercial registration.Acquisition of assetsThe Group, through its subsidiary PetroChinaInternational Investment (Australia) Pty Ltd., acquired a 20% interest in west Australian offshore Browse Basin Posedion natural gas project and a 29% interest in onshore Canning Basin shale gas project held by ConocoPhilips (Browse Basin) Pty Ltd. and ConocoPhilips (Canning Basin) Pty Ltd., respectively, both of which are subsidiaries of ConocoPhillips Company on February 20, 2013. The Group paid the consideration of US$400.7 million (approximately RMB2,476 million) on June 28, 2013.The Group, through its subsidiary PetroChina International Investment (Australia) Pty Ltd., acquired from BHP Billiton Ltd. all the interest in the Browse project in west Australia. The Group paid the consideration of US$1,708.3 million and US$3.7 million (approximately RMB10,578 million in aggregate) on June 7, 2013 and July 16, 2013, respectively.The above events do not affect the continuity of business or the stability of management of the Group, and will benefit the future financial conditions and operating results of the Group.

034 SIGNIFICANT EVENTS8. Material Connected Transactions(1) Continuing connected transactionsContinuing connected transactions with CNPCPursuant to the Listing Rules and the Shanghai Stock Exchange Listing Rules, since CNPC is the controlling shareholder of the Company, transactions between the Group and CNPC as well as their jointly-held entities constitute connected transactions of the Group. The Group and CNPC as well as their jointly-held entities continue to carry out certain existing continuing connected transactions. The Company had obtained independent Directors’ and independent shareholders’ approval at the second meeting of the Fifth Session of the Board held on August 24 to 25, 2011, the general meeting held on October 20, 2011 and the ninth meeting of the Fifth Session of the Board held on June 27, 2013 for a renewal of the existing continuing connected transactions and the new continuing connected transactions, and the proposed caps for the existing continuing connected transactions and the new continuing connected transactions for the period from January 1, 2012 to December 31, 2014.The Group and CNPC as well as their jointly-held entities will continue to carry out the existing continuing connected transactions referred to in the following agreements:1) Comprehensive Products and Services Agreement2) Land Use Rights Leasing Contract and an agreementsupplementary thereto3) Buildings Leasing Contract (as amended)4) Intellectual Property Licensing Contracts5) Contract for the Transfer of Rights under ProductionSharing Contracts6) Debts Guarantee Contract2013 INTERIM REPORTDetails of the above agreements were set out in the section headed “Connected Transactions” of the 2012 annual report published on the website of the Shanghai Stock Exchange on March 22, 2013. Details of the Comprehensive Products and Services Agreement, the Supplementary Agreement to the Land Use Rights Leasing Contract and the Buildings Leasing Contract (as amended) were published on the websites of the Hong Kong Stock Exchange and the Shanghai Stock Exchange on August 25 and 26, 2011 respectively, and were also set out in the meeting materials for the 2011 extraordinary general meeting published on the website of the Shanghai Stock Exchange on October 12, 2011.( 2 ) P e r f o r m a n c e o f t h e c o n t i n u i n g c o n n e c t e d transactions during the reporting periodDuring the reporting period, in accordance with the CAS, the actual total transaction amounts of the connected transactions enacted between the Group and its connected parties were RMB211,917 million, of which the sales of goods and provision of services by the Group to its connected parties amounted to RMB62,731 million, representing 5.70% of the same transactions of the Group. The purchase of goods and provision of services from the connected parties to the Group amounted to RMB149,186 million, representing 15.09% of the same transactions of the Group. The balance of the capital provided by the connected parties to the Group amounted to RMB342,049 million.(3) Details of the connected transactions during the reporting period have been set out in Note 52 to the financial statements of the Group prepared under CAS and Note 18 to the financial statements of the Group prepared under IFRS.

035 9. Material Contracts and the Performance Thereof Thereof(1)There was no material transaction, or any trusteeship, sub-contracting and leasing of properties of other companies by the Company, or any trusteeship, sub-contracting and leasing of properties of the Company by other companies which was enacted during the reporting period or extended from prior periods to the reporting period.(2) The Group had no material guarantees during the reporting period.SIGNIFICANT EVENTS 035(3) The Company did not entrust any other person to carry out cash management during the reporting period nor was there any such entrustment that was extended from prior periods to the reporting period.(4) The Company had no material external entrustment loans during the reporting period.(5) Save as disclosed in this interim report, during the reporting period, the Company did not enter into any material contract which requires disclosure.Specific undertakings made by CNPC, the controlling shareholder of the Company, and their performance as at June 30, 2013:Name ofShareholder Undertaking Performance of UndertakingAs at June 30, 2013, CNPC had obtained formal land use right certificatesA c c o rd i n g t o t h e R e s t r u c t u r i n g in relation to 28,233 out of 28,649 parcels of land and some buildingAgreement entered into between ownership certificates for the buildings pursuant to the undertaking in theCNPC and the Company on March Restructuring Agreement, but had not completed all of the necessary10, 2000, CNPC has undertaken governmental procedures for the service stations located on collectively-to indemnify the Company against owned land. The use of and the conduct of relevant activities at theany claims or damages arising or above-mentioned parcels of land, service stations and buildings were notresulting from certain matters in the affected by the fact that the relevant land use right certificates or individualRestructuring Agreement. building ownership certificates had not been obtained or the fact that therelevant governmental procedures had not been completed.According to the Non-CompetitionAgreement entered into betweenCNPC CNPC and the Company on March10, 2000, CNPC has undertaken to Currently, CNPC owns the following businesses which are identical orthe Company that CNPC will not, and similar to the core businesses of the Group:will procure that its subsidiaries do not, CNPC has overseas operations in relation to exploration and productiondevelop, operate, assist in operating of crude oil and natural gas as well as production, storage andnor participate in any businesses by transportation of petroleum, chemical and related petroleum products.itself or jointly with another company CNPC has oil and gas exploration and development operations in manywithin or outside the PRC that will overseas countries and regions.compete with or lead to competition As the laws of the country where ADSs are listed prohibit its citizens fromwith the core businesses of the Group. directly or indirectly financing or investing in the oil and gas projects inAccording to the Agreement, CNPC certain countries, CNPC did not inject the overseas oil and gas projects inhas also granted to the Company certain countries to the Company.pre-emptive rights to transaction withregards to part of its assets. 10. Performance of Undertakings

036 SIGNIFICANT EVENTS 11. Penalties on the Company and its Directors, Supervisors, Senior Management, Controlling Shareholder and De Facto ControllerHUK_9LTLKPLZ_;OLYL[VDuring the reporting period, none of the Directors, Supervisors, senior management, controlling shareholder or de facto controller of the Company was subject to any investigation by competent authorities or enforcement by judicial or disciplinary authorities, transferred to judicial authorities or held criminally liable, under any initiation of investigation or administrative penalty, denied participation in the securities market or deemed unsuitable to act as directors by the China Securities Regulatory Commission, nor was there any administrative penalty by other administrative authorities or public condemnation by stock exchanges. SecuritiesThe Company and its subsidiaries did not repurchase, sell or redeem any of the listed securities of the Company during the six months ended June 30, 2013.The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix 10 to the Listing Rules (the “Model Code”) in respect of dealing in the Company’s shares by its Directors. Each Director and Supervisor has confirmed to the Company that each of them had complied with the requirements set out in the Model Code during the reporting period.2013 INTERIM REPORT14. Interests of Directors and Supervisors in As at June 30, 2013, none of the Directors or Supervisors had any interest or short positions in any shares, underlying shares or debentures of the Company or any associated corporation within the meaning of Part XV of the Securities and Futures Ordinance that required to be recorded in the register mentioned under Section 352 of the Securities and Futures Ordinance or as otherwise notifiable to the Company and the Hong Kong Stock Exchange by the Directors and Supervisors pursuant to the Model Code.The Company has established the Audit Committee, which comprises Mr Franco Bernabè, Mr Cui Junhui, Mr Chen Zhiwu and Mr Wang Guoliang.The Audit Committee of the Company has reviewed and confirmed the interim results for the six months ended June 30, 2013. Save as disclosed above, there have been no material changes in the information disclosed in the annual report of the Group for the year ended December 31, 2012 in respect of matters required to be disclosed under paragraph 32 of Appendix 16 to the Listing Rules. 12. Repurchase, Sale or Redemption of Securities 13. Compliance with the Model Code 14. Interests of Directors and Supervisors in the Share Capital of the Company 15. Audit Committee 16. Disclosure of Other Information

(1) The promulgation of proposal concerning the improvement of the refined oil pricing mechanismOn March 26, 2013, the National Development and Reform Commission (the “NDRC”) issued the Notice of the National Development and Reform Commission Concerning Further Improving the Price Determination Mechanism for Refined Products ( ? ) (Fa Gai Jia Ge [2013] No. 624). The notice prescribes that the period for adjusting the refined oil price shall be shortened from 22 working days to 10 working days. The price adjustment amplitude restriction, which involves a limit of 4% fluctuation against the average market price of oil products available in the international market, is cancelled. Appropriate adjustment will be made to the linkage of the prices of the domestic refined products to those of the crude oil products in the international market.This event will not affect the continuity of business or the stability of management of the Group. It is conducive to the sustainable and healthy development of the refining and chemicals and marketing businesses of the Group and will benefit the future financial conditions and operating results of the Group.(2) The promulgation of the proposals concerning the adjustment of the price of natural gasSIGNIFICANT EVENTS 041On June 28, 2013, the NDRC issued the Notice of the National Development and Reform Commission Concerning the Adjustment of the Price of Natural Gas ? (Fa Gai Jia Ge [2013] No. 1246). The notice prescribes that a new proposal for adjusting the price of natural gas shall be implemented commencing from July 10, 2013 and the price for natural gas applicable to non-residential users will be adjusted. By adopting a market-driven approach, a dynamic adjustment mechanism that reflects both the market demand and supply and the scarcity of resources, and also links to the price of alternative energy will be established. The price for the consumption amount in 2012 and for that exceeds the 2012 level should be differentiated. For the consumption amount that exceeds 2012 level, the price will be further adjusted to maintain a reasonable parity level with those for fuel oil, liquefied petroleum gas and other alternative energy resources. The price applicable to the consumption amount in 2012 will be adjusted in phases. The management of the natural gas price will be switched from the ex-factory price to the citygate price which is the guiding price stipulated by the government. Accordingly, a price ceiling control will be implemented.This event will not affect the continuity of business or the stability of management of the Group. It is conducive to the sustainable and healthy development of the natural gas business of the Group and will benefit the future financial conditions and operating results of the Group.

DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT1. Change of Directors, Supervisors and Senior4HUHNLTLU[_VM_[OL_*VTWHU`During the reporting period, due to change of work arrangements, Mr Jiang Jiemin tendered his resignation and ceased to hold the positions of the Chairman of the Board and the Director of the Company. His resignation came into effect on March 18, 2013. Mr Zhou Jiping started to perform the duties and powers of the Chairman of the Board before the election of a new Chairman. An extraordinary meeting of the Board was held on April 25, 2013, and Mr Zhou Jiping was elected as the Chairman of the Board, taking effect from April 25, 2013. An extraordinary meeting of the Board was held on July 28, 2013, and Mr Wang Dongjin was appointed as the President of the Company. The appointment came into effect on July 28, 2013. Mr Zhou Jiping ceased to be the President of the Company from the same day, and onlyremained as the Chairman of the Board.On May 23, 2013, the Company held the annual general meeting for the year 2012. Mr Li Qingyi was elected as the Supervisor and Mr Fan Fuchun was elected as the independent Supervisor of the Company. Their appointments came into effect on May 23, 2013. On the same day, Mr Sun Xianfeng ceased to hold the position of the Supervisor of the Company due to his age.Mr Zhou Mingchun tendered his resignation to the Company and ceased to hold the position of the Chief Financial Officer of the Company due to change of work arrangements. The resignation came into effect on March 14, 2013. An extraordinary meeting of the Board was held on March 14, 2013 on which Mr Yu Yibo was appointed as the Chief Financial Officer of the Company. The appointment came into effect on March 14, 2013.            )HZPJ_7HY[PJ\SHYZ_VM_[OL_*\YYLU[_+PYLJ[VYZ__:\WLY]PZVYZ_HUK_V[OLY_:LUPVY_4HUHNLTLU[_DirectorsName Gender Age PositionZhou Jiping Male 61 Chairman of the BoardLi Xinhua Male 60 Non-executive DirectorLiao Yongyuan Male 50 Executive Director, Vice-PresidentWang Guoliang Male 60 Non-executive DirectorWang Dongjin Male 50 Executive Director, PresidentYu Baocai Male 48 Non-executive DirectorRan Xinquan Male 48 Executive Director, Vice-PresidentLiu Hongru Male 82 Independent Non-executive DirectorFranco Bernabè Male 64 Independent Non-executive DirectorLi Yongwu Male 69 Independent Non-executive DirectorCui Junhui Male 67 Independent Non-executive DirectorChen Zhiwu Male 50 Independent Non-executive Director

PETROCHINA COMPANY LIMITEDUNAUDITED CONSOLIDATED AND COMPANY BALANCE SHEETSAS OF JUNE 30, 2013(All amounts in RMB millions unless otherwise stated)June December June December30, 2013 31, 2012 30, 2013 31, 2012ASSETS Notes The Group The Group The Company The CompanyCurrent assetsCash at bank and on hand 7 158,042 49,953 116,855 11,574Notes receivable 8 14,299 9,981 10,744 7,329Accounts receivable 9a 89,718 64,450 9,596 4,198Advances to suppliers 10 57,193 32,813 41,305 22,224Other receivables 9b 19,839 14,165 52,343 48,324Inventories 11 211,999 214,117 163,283 166,074Other current assets 43,057 32,561 33,745 23,959Total current assets 594,147 418,040 427,871 283,682Non-current assets“WBJMBCMF_GPS_TBMF_mOBODJBM_assets 12 1,590 1,756 1,180 1,253Long-term equity investments 13 114,698 79,615 315,891 265,939Fixed assets 14 496,465 545,479 388,610 438,504Oil and gas properties 15 729,406 733,583 487,039 492,322Construction in progress 17 297,410 283,059 167,043 185,884Construction materials 16 7,895 7,486 5,724 5,866Intangible assets 18 57,045 56,426 44,979 44,159Goodwill 19 7,294 7,582 119 119Long-term prepaid expenses 20 24,491 24,351 21,612 21,464Deferred tax assets 33 1,452 1,443 —Other non-current assets 9,522 10,017 1,585 1,442Total non-current assets 1,747,268 1,750,797 1,433,782 1,456,952TOTAL ASSETS 2,341,415 2,168,837 1,861,653 1,740,6345IF_BDDPNQBOZJOH_OPUFT_GPSN_BO_JOUFHSBM_QBSU_PG_UIFTF_mOBODJBM_TUBUFNFOUT_Chairman Director and President $Zhou Jiping Wang Dongjin Yu Yibo

PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED AND COMPANY BALANCE SHEETS AS OF JUNE 30, 2013 (CONTINUED) ( All amounts in RMB millions unless otherwise stated) June December June December LIABILITIES AND 30, 2013 31, 2012 30, 2013 31, 2012 SHAREHOLDERS’ EQUITY Notes The Group The Group The Company The Company Current liabilities Short-term borrowings 22 133,518 143,409 157,085 181,974 Notes payable 23 1,605 2,265 —Accounts payable 24 261,453 278,427 125,653 155,420 Advances from customers 25 42,504 38,131 27,173 27,099 Employee compensation payable 26 9,447 4,161 7,621 3,024 Taxes payable 27 46,551 72,045 30,859 46,380 Other payables 28 45,645 23,642 33,392 17,397 Current portion of non-current liabilities 30 50,679 7,838 27,628 6,626 Other current liabilities 27,982 4,830 25,374 1,904 Total current liabilities 619,384 574,748 434,785 439,824 Non-current liabilities Long-term borrowings 31 275,242 207,540 239,461 170,536 Debentures payable 32 91,156 86,234 91,000 86,000 Provisions 29 87,297 83,928 58,286 55,676 Deferred tax liabilities 33 20,659 22,209 5,163 4,417 Other non-current liabilities 14,147 13,412 4,489 4,151 Total non-current liabilities 488,501 413,323 398,399 320,780 Total liabilities 1,107,885 988,071 833,184 760,604 Shareholders’ equity Share capital 34 183,021 183,021 183,021 183,021 Capital surplus 35 115,653 115,878 127,898 128,136 Special reserve 12,350 10,054 8,998 7,080 Surplus reserves 36 161,623 161,623 150,523 150,5236 OEJTUSJCVUFE_QSPmUT37 640,220 598,686 558,029 511,270 Currency translation differences (11,603) (5,115) —Equity attributable to equity holders of the Company 1,101,264 1,064,147 1,028,469 980,030 Minority interests 38 132,266 116,619 —Total shareholders’ equity 1,233,530 1,180,766 1,028,469 980,030 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 2,341,415 2,168,837 1,861,653 1,740,6345IF_BDDPNQBOZJOH_OPUFT_GPSN_BO_JOUFHSBM_QBSU_PG_UIFTF_mOBODJBM_TUBUFNFOUT_Chairman Director and President $IJFG_‘JOBODJBM_0GmDFS_Zhou Jiping Wang Dongjin Yu Yibo

PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) For the six For the six For the six For the sixmonths ended months ended months ended months ended June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 Items Notes The Group The Group The Company The Company Operating income 39 1,101,096 1,046,661 660,496 644,915Less: Cost of sales 39 (837,762) (767,155) (492,896) (476,504)Taxes and levies on operations 40 (119,935) (124,319) (88,842) (91,333)Selling expenses 41 (27,593) (26,324) (20,702) (19,828)General and administrativeexpenses 42 (42,656) (38,354) (32,301) (29,242)Finance expenses 43 (10,987) (8,052) (10,681) (8,400)Asset impairment losses 44 (193) (1,455) (170) (1,224)Add: Investment income 45 4,778 5,203 29,501 35,8626WLYH[PUN_WYVA[ 66,748 86,205 44,405 54,246Add: Non-operating income 46a 30,098 4,616 34,534 4,143Less: Non-operating expenses 46b (3,085) (3,230) (2,744) (2,924)7YVA[_ILMVYL_[H_H[PVU 93,761 87,591 76,195 55,465Less: Taxation 47 (21,204) (17,763) (5,451) 8355L[_WYVA[ 72,557 69,828 70,744 56,300Attributable to:Equity holders of the Company 65,521 62,024 70,744 56,300Minority interests 7,036 7,804 —Earnings per shareBasic earnings per share (RMB Yuan) 48             Diluted earnings per share (RMB Yuan) 48             Other comprehensive (loss) / income 49 (7,299) 1,224 (238) 152Total comprehensive income 65,258 71,052 70,506 56,452Attributable to:Equity holders of the Company 58,844 62,855 70,506 56,452Minority interests 6,414 8,197 —5IF_BDDPNQBOZJOH_OPUFT_GPSN_BO_JOUFHSBM_QBSU_PG_UIFTF_mOBODJBM_TUBUFNFOUT_Chairman Director and President $Zhou Jiping Wang Dongjin Yu Yibo

FINANCIAL STATEMENTS 047 PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) For the six For the six For the six For the six months ended months ended months ended months ended June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 Items Notes The Group The Group The Company The Company Cash flows from operating activities Cash received from sales of goods and rendering of services 1,257,500 1,207,041 760,301 744,426 Refund of taxes and levies 794 977 333 941 Cash received relating to other operating activities 829 3,732 577 937 Sub-total of cash inflows 1,259,123 1,211,750 761,211 746,304 Cash paid for goods and services (842,646) (825,131) (476,351) (496,290) Cash paid to and on behalf of employees (50,375) (45,558) (36,154) (33,446) Payments of taxes and levies (236,527) (266,247) (172,707) (175,313) Cash paid relating to other operating activities (27,518) (26,808) (14,658) (52,601) Sub-total of cash outflows (1,157,066) (1,163,744) (699,870) (757,650) Net cash flows from operating 50a 102,057 activities 48,006 61,341 (11,346) Cash flows from investing activities Cash received from disposal of investments 1,168 72 4 - Cash received from returns on investments 3,694 5,619 45,106 35,492 Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets 38,647 266 38,544 226 Sub-total of cash inflows 43,509 5,957 83,654 35,718 Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term assets (138,680) (131,814) (73,699) (92,552) Cash paid to acquire investments (3,632) (21,954) (13,395) (21,501) Sub-total of cash outflows (142,312) (153,768) (87,094) (114,053) Net cash flows from investing activities (98,803) (147,811) (3,440) (78,335) The accompanying notes form an integral part of Chairman Director and President Chief Financial Zhou Jiping Wang Dongjin Yu Yibo

For the six For the six For the six For the six months ended months ended months ended months ended June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 Items Notes The Group The Group The Company The Company

Cash received from capital contributions 12,716 9,125 - - Including: Cash received from minority shareholders’ capital contributions to subsidiaries 12,716 9,125 - -Cash received from borrowings 334,530 291,848 205,293 188,361

Cash received relating to other financing activities 121 167 97 143 Sub-total of cash inflows 347,367 301,140 205,390 188,504 Cash repayments of borrowings (227,035) (175,271) (134,725) (87,225) Cash payments for interest expenses and distribution of dividends (14,871) or profits (14,422) (23,256) (10,079) Including: Subsidiaries’ cash payments for distribution of dividends or profits to minority shareholders (4,204) (3,617) - -Cash payments relating to other financing activities (652) (139) (29) (135)

Net cash flows from financing activities104,809 111,308 47,380 91,065 Effect of foreign exchange rate changes on cash and cash equivalents (1,366) 676 - -Net increase in cash and cash equivalents 50b 106,697 12,179 105,281 1,384 Add: Cash and cash equivalents at beginning of the period 43,395 61,172 11,574 38,794

049 PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Shareholders’ equity attributable to the Company Total Undistri- Currency share-Share Capital Special Surplus buted translation Minority holders’ Items capital surplus reserve reserves profits differences interests equity Balance at January 1, 2012 183,021 112,878 9,107 151,280 551,598 (4,999) 79,681 1,082,566 Changes in the six months ended June 30, 2012 Total comprehensive income - 141 - - 62,024 690 8,197 71,052 Special reserve- safety fund Appropriation - - 3,460 - - - 30 3,490 Utilisation - - (356) - 45 - (14) (325) Profit distribution Distribution to shareholders - - - - (30,129) - (4,594) (34,723) Other equity movement Acquisition of subsidiaries - - - - - - 132 132 Purchase of minority interests in subsidiaries - (26) - - - - (73) (99) Capital contribution from minority interests - 2,276 - - - - 6,849 9,125 Other - (37) - - (2) - (18) (57) Balance at June 30, 2012 183,021 115,232 12,211 151,280 583,536 (4,309) 90,190 1,131,161 The accompanying notes form an integral part of Chairman Director and President Chief Financial Zhou Jiping Wang Dongjin Yu Yibo

050 PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2013 (CONTINUED) (All amounts in RMB millions unless otherwise stated) Shareholders’ equity attributable to the Company Total Undistri- Currency share-Share Capital Special Surplus buted translation Minority holders’ Items capital surplus reserve reserves profits differences interests equity Balance at January 1, 2013 183,021 115,878 10,054 161,623 598,686 (5,115) 116,619 1,180,766 Changes in the six months ended June 30, 2013 Total comprehensive income - (189) - - 65,521 (6,488) 6,414 65,258 Special reserve - safety fund Appropriation - - 3,419 - - - 45 3,464 Utilisation - - (1,123) - - - (23) (1,146) Profit distribution Distribution to shareholders - - - - (23,985) - (3,930) (27,915) Other equity movement Acquisition of subsidiaries - - - - - - 121 121 Purchase of minority interests in subsidiaries - - - - - - (35) (35) Capital contribution from minority interests - (6) - - - - 12,722 12,716 Disposal of subsidiaries - 1 - - - - (87) (86) Other - (31) - - (2) - 420 387 Balance at June 30, 2013 183,021 115,653 12,350 161,623 640,220 (11,603) 132,266 1,233,530 The accompanying notes form an integral part of Chairman Director and President Chief Financial Zhou Jiping Wang Dongjin Yu Yibo

051 PETROCHINA COMPANY LIMITED UNAUDITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Total Share Capital Special Surplus Undistributed shareholders’ Items capital surplus reserve reserves profits equity Balance at January 1, 2012 183,021 128,019 6,474 140,180 476,103 933,797 Changes in the six months ended June 30, 2012 Total comprehensive income - 152 - - 56,300 56,452 Special reserve - safety fund Appropriation - - 3,046 - - 3,046 Utilisation - - (289) - 7 (282) Profit distribution Distribution to shareholders - - - - (30,129) (30,129) Others - - - - 23 23 Balance at June 30, 2012 183,021 128,171 9,231 140,180 502,304 962,907 Balance at January 1, 2013 183,021 128,136 7,080 150,523 511,270 980,030 Changes in the six months ended June 30, 2013 Total comprehensive income - (238) - - 70,744 70,506 Special reserve - safety fund Appropriation - - 2,970 - - 2,970 Utilisation - - (1,052) - - (1,052) Profit distribution Distribution to shareholders - - - - (23,985) (23,985) Balance at June 30, 2013 183,021 127,898 8,998 150,523 558,029 1,028,469 The accompanying notes form an integral part of Chairman Director and President Chief Financial Zhou Jiping Wang Dongjin Yu Yibo

052 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) 1 COMPANY BACKGROUND PetroChina Company Limited (the “Company”) was established as a joint stock company with limited liability on November 5, 1999 by China National Petroleum Corporation (“CNPC”) as the sole proprietor in accordance with the approval Guo Jing Mao Qi Gai [1999] No. 1024 “Reply on Limited” from the former State Economic and Trade Commission CNPC restructured (“the Restructuring”) and injected its core business and the related assets and liabilities into the Company. CNPC is a wholly state-owned company collectively referred to as the “Group”. The Group is principally engaged in (i) the exploration, development and production and marketing of crude oil and natural gas; (ii) the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, derivative petrochemical products and other chemical products; (iii) the marketing of refined products and trading business; and (iv) the the sale of natural gas. The principal subsidiaries of the 2 BASIS OF PREPARATION The financial statements of the Group are prepared in standards of Accounting Standards for Business Enterprises issued by the Ministry of Finance (the “MOF”) on February 15, 2006, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other regulations issued thereafter (hereafter referred to as the “Accounting Standard for Business Enterprises”, “China 3 STATEMENT OF COMPLIANCE WITH THE ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES The unaudited consolidated and the Company’s financial statements for the six months ended June 30, 2013 truly and completely present the financial position their financial performance and their cash flows for the Standards for Business Enterprises. 4 PRINCIPAL ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (1) Accounting Period The accounting period of the Group starts on January 1 (2) Recording Currency The recording currency of the Company and most of its consolidated financial statements are

FINANCIAL STATEMENTS 053 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (3) Measurement Properties Generally are measured at historical cost unless otherwise stated at fair value, net realisable value or present value of the estimated future cash flow expected to be (4) Foreign Currency Translation (a) Foreign currency transactions Foreign currency transactions are translated into RMB at the exchange rates prevailing at the date of the transactions. Monetary items denominated in foreign currencies at the balance sheet date are translated into RMB at the exchange rates prevailing at the balance sheet date. recognised in profit or loss except for those arising construction of qualifying assets in connection with denominated in foreign currencies measured at historical cost are translated into RMB at the historical exchange rates prevailing at the date of the transactions at cash is presented separately in the cash flow statement (b) Translation of financial statements represented Assets and liabilities of each balance sheet of the foreign operations are translated into RMB at the closing rates at the balance sheet date, while the equity items are translated into RMB at the exchange rates at the date of the transactions, except for the retained earnings. operations are translated into RMB at the approximate translation differences resulted from the above-mentioned translations are recognised as a separate component of equity. The cash flows of overseas operations of the transactions. The effect of exchange rate changes (5) Cash and Cash Equivalents Cash and cash equivalents refer to all cash on hand and deposit held at call with banks, short-term highly liquid investments that are readily convertible to risk of changes in value.

054 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (6) Financial Instruments (a) Financial assets Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-classification depends on the Group’s intention and the receivables, available-for-sale financial assets and detailed accounting policies for receivables, available-for-sale financial assets and financial assets at fair value through profit or loss held by the Group are set out below: (i) Receivables Receivables are non-derivative financial assets with active market, including accounts receivable, notes (ii) Available-for-sale financial Available-for-sale financial assets are non-derivative that are either designated in this category at initial recognition or not classified in any of the other categories sheet if they are intended to be sold within 12 months of (iii) Financial assets at fair value through profit or Financial assets at fair value through profit or loss the short term. They are presented as financial assets categorised as held for trading unless they are designated (iv) Recognition and measurement Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the instrument. Related loss are profit or recorded loss when in acquired. Related transaction costs financial assets are recognised into the initial to receive cash flows from the investments have expired transferred to the transferee. Financial assets at fair value through profit or loss and available-for-sale financial assets are subsequently measured at fair value. The investments in equity market and whose fair value cannot be reliably measured costs using the effective interest method.

FINANCIAL STATEMENTS 055 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Changes in the fair values of available-for-sale losses and foreign exchange gains and losses arising in foreign currencies. When the financial asset is recognised in equity will be recognised in profit or calculated using the effective interest method is the investee on available-for-sale investments in equity instruments are recognised as investment income, which is recognised in profit or loss for the period. (v) Impairment of financial assets The Group assesses the carrying amount of receivables sheet date. If there is objective evidence that a If a financial asset carried at amortised cost is between the asset’s carrying amount and the present losses that have not been incurred). If there is has been recovered, and that it is related to events occurring subsequent to the recognition of impairment, the previously recognised impairment losses shall be reversed and the amount of the reversal will be recognised in the income statement. When there is objective evidence that available-for-sale financial assets is impaired, the cumulative losses that have been recognised in equity as a result of the decline in the fair value shall be removed from equity and recognised as impairment losses in the income as available-for-sale on which impairment losses have been recognised, if in a subsequent period the fair value increases and the increase can be objectively related to an event occurring after the impairment losses recognisition, the previously recognised impairment available-for-sale on which impairment losses have been recognised, any subsequent increases in its fair value shall be directly recognised in equity. (b) Financial liabilities Financial liabilities are classified into the through profit or loss and other financial liabilities. loans and debentures payable classified as other Payables, including accounts payable, other subsequently measured at amortised costs using the Loans and debentures payables are initially recognised at fair value less transaction costs, and subsequently measured at amortised costs using the effective interest

056 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Other financial liabilities with terms of one year or financial liabilities with terms more than one year but sheet date are presented as current portion of non-current A financial liability may not be derecog

nised, in all are all, or partly, dissolved. The difference between derecognition and the consideration paid shall be (c) Determination of financial instruments’ fair value Regarding financial instruments, for which there is be used to determine fair value. If there is no active adopted to determine the fair value. The valuation familiar with each other, in the latest market transactions upon their own free will, the current fair value obtained by referring to other financial instruments of essentially the same nature, When adopting any valuation technique, one shall employ, where possible, all the market parameters observable, and try to avoid using the parameters that relate (7) Inventories Inventories include crude oil and other raw materials, and are measured at the lower of cost and net realisable Cost of inventories is determined primarily using the work in progress comprises cost of crude oil, other raw materials, direct labour and production overheads allocated based on normal operating capacity. Turnover materials Low cost consumables are amortised with graded amortisation method and packaging materials are expensed off in full. Provision for decline in the value of inventories is measured as the excess of the carrying value of the inventories over their net realisable value. Net business, less the estimatedelling cost to expenses completion and and related The Group adopts perpetual inventory system. (8) Long-term Equity Investments Long-term equity investments comprise the Company’s equity investments in subsidiaries, and the Group’s equity investments in jointly controlled entities and

FINANCIAL STATEMENTS 057 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Long-term equity investments acquired through business combinations: For a long-term equity investment acquired through a business combination under common control, the proportionate share of the carrying value of shareholders’ equity of the combined entity shall be long-term equity investment acquired through a business combination not under common control, the acquisition costs paid shall be treated as the cost of the investment Long-term equity investments acquired through other than business combinations: For an acquisition settled in cash, the initial cost of investment shall be the issuance of equity securities, the the fair initial value cost of equity of (a) Subsidiaries Subsidiaries are those entities over which the Group and operating policies so as to obtain benefits from the rights, including currently convertible company bonds and exercisable share warrants, are considered when assessing whether the Group has controls over the cost in the financial statements of the Company and are accounting in consolidated financial statements. Long-term equity investments accounted for at cost dividends or profit distributions declared by the investees are recognised as investment income in the income statement. A listing of the Group’s principal subsidiaries is set (b) Jointly controlled entities and associates Jointly controlled entities are those over which the Group is able to exercise joint control together with other ventures. Associates are those in which the Group has The term “joint control” refers to the contractually control cannot exist without the unanimous consent of the investors who share the control, and unanimous consent is required when making important financial and operating activity. The term “significant influence” refers to the power policies of an enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.

058 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) The investments in jointly controlled entities and associates are accounted for using the equity method accounting. The excess of the initial cost of the identifiable assets is included in the initial cost of the investee’s net identifiable assets over the cost of period in which the investment is acquired and the cost Under the equity method accounting, the Group’s share of its investees’ post-acquisition profits or losses is recognised in the income statement. When the Group’s carrying amount of the long-term equity investment and other long-term interests which substantively form the net investment in the investee, the Group does not recognise further losses and provisions, unless it has obligations to bear extra losses which meet the criteria of recognition for liabilities according to the related standards for contingencies. Movements in the investee’ owner’s recognised in the Group’s capital surplus, provided that share of the investee’s profit distribution or cash amount of the investment upon declaration. The profits the Group and its investees are eliminated to the extent of the Group’s interests in the investees, on the basis of which the investment income or losses are recognised. and its investees, of which nature is asset impairment, is recognised in full amount, and the relevant unrealised loss is not allowed to be eliminated. (c) Impairment of long-term equity investments For investments in subsidiaries, jointly controlled entities and associates, if the recoverable amount is lower than its carrying amount, the carrying amount shall be long-term equity investment, for which there is no quotation in the active market, and for which a fair value cannot be reliably measured, suffers from any impairment, the difference between the carrying amount of the long-term equity investment and the current value of the future cash flow ratio of the market at the same time, shall be recognised recognised, it shall not be reversed in future accounting (9) Fixed Assets Fixed assets comprise buildings, equipment and or constructed are initially recorded at cost. The fixed Restructuring were initially recorded at the valuated amount approved by the relevant authorities managing state-owned assets.

FINANCIAL STATEMENTS 059 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Subsequent expenditures for fixed assets are included in the cost of fixed assets only when it is probable that in future economic benefits associated with the measured reliably. The carrying amount of the replaced charged to profit or loss during the financial period Fixed assets are depreciated using the straight-line method based on the balance of their costs less estimated residual values over their estimated useful years. related depreciation charge is determined based on the net value lessening the impairment recognised over their remaining useful lives. The estimated useful lives, estimated residual value as follows: Estimated residual Annual depreciation Estimated useful lives value ratio % rate % Buildings 8 to 40 years 5 2.4 to Equipment and Machinery 4 to 30 years 3 to 5 3.2 to Motor Vehicles 4 to 14 years 5 6.8 to Other 5 to 12 years 5 7.9 to The estimated useful lives, estimated residual values and adjusted if appropriate, at year end. As of January 1, 2013, the management has revised the estimates of useful lives from 14 to 30 years of the Group’s long-distance pipelines with reference to the practices commonly adopted by the companies within the same industry and the physical condition of the the Group’s business performance for the six months An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its recoverable amount (Note 4(15)). The carrying amounts of fixed assets are derecognised when the fixed assets are disposed or no future economic benefits are expected from their use or damaged, gains or losses on disposal are determined by comparing the proceeds with the carrying amounts of the assets, adjusted by related taxes and expenses, and

060 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (10) Oil and Gas Properties Oil and gas properties include the mineral interests in properties, wells and related facilities arising from oil and gas exploration and production activities. The costs of obtaining the mineral interests in properties are capitalised when they are incurred and are initially recognised at acquisition costs. Exploration license fee, mineral interests in properties, subsequent to the acquisition of the mineral interests in properties, are charged to profit or loss. Oil and gas exploration costs include drilling drilling exploration costs are capitalised pending determination of whether the wells find proved oil and gas reserves. The non-drilling exploration costs are recorded Oil and gas development costs are capitalised as the respective costs of wells and related facilities for oil and gas development based on their intended use. The Ministry of Land and Resources in China issues production licenses to applicants on the basis of the reserve reports approved by relevant authorities. The oil and gas properties are amortised at the field the mineral interests in unproved properties which are on oil and gas reserves estimated to be recoverable from existing facilities based on the current terms of production licenses. The carrying amount of oil and gas properties other than the mineral interests in unproved properties is reduced to the recoverable amount when their recoverable amount of the mineral interests in unproved properties is reduced to the fair value when their fair value is lower than their carrying amount (Note 4(15)). (11) Construction in progress Construction in progress is recognised at actual cost. necessary costs incurred and the borrowing costs eligible for capitalisation to prepare the asset for its intended use. Construction in progress is transferred to fixed depreciation begins from the following month.

FINANCIAL STATEMENTS 061 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Oil and gas exploration costs include drilling exploration costs and the non-drilling exploration costs, the successful efforts method is used for the capitalisation included in the oil and gas exploration costs are capitalised as wells and related facilities when the wells are completed and economically proved reserves are found. economically proved reserves less the net residual exploration costs for the sections of wells with economically proved reserves are capitalised as wells and related facilities, and the costs of other sections are capitalised pending the determination of whether economically proved reserves can be found within one year of the completion of the wells. For wells that are still can be found after one year of completion, the related drilling exploration costs remain temporarily capitalised only if sufficient reserves are found in those wells and they are economically proved reserves or not, and further exploration activities are under way or firmly planned and are about to be implemented. Otherwise the related discovered in a well, for which the drilling exploration costs have been expensed previously, no adjustment should be made to the drilling exploration costs that were expensed, while the subsequent drilling exploration costs and costs for completion of the well are capitalised. The crude oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic (12) Intangible Assets Intangible assets include land use rights and assets injected by the state-owned shareholder during the Restructuring were initially recorded at the valued amount approved by the relevant authorities managing the Land use rights are amortised using the straight-line allocate the amount paid for the purchase of land use rights and buildings between the land use rights and the buildings on a reasonable basis, the entire amount is Patent and other intangible assets are initially recorded at actual cost, and amortised using the straight-line method over the assets’ estimated useful lives. The carrying amount of intangible assets is written down to its recoverable amount when the recoverable amount is lower than the carrying amount (Note 4(15)) intangible assets with finite useful life are reviewed,

062 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (13) Research and Development Research expenditure incurred is recognised as an be capitalised unless they satisfy the following conditions simultaneously: · In respect of the technology, it is feasible to · It is intended by managements gibleto asset; finish and use or · It is able to prove that the intangible asset is to ·With the support of sufficient technologies, financial development of the intangible asset, and it is able to use or sell the intangible asset; and · The costs attributable to the can development be reliably of measured. the Costs incurred on development projects not satisfying the current period. Costs incurred on development recorded be re-recognised as asset in future accounting periods. listed as development expenditure in the balance sheet, which shall be transferred to intangible asset from the date when the expected purposes of use are realised. (14) Long-term Prepaid Expenses Long-term prepaid expenses include advance lease payments and other prepaid expenses that should be borne by current and subsequent periods and should be expenses are amortised using the straight-line method cost less accumulated amortisation. (15) Impairment of Non-current Assets Fixed assets, oil and gas properties except for mineral interests in unproved properties, intangible assets with finite useful life and long-term equity investments are may be impaired at the balance sheet date. An impairment carrying amount exceeds its recoverable amount if the impairment test indicates that the recoverable amount is less than its carrying amount. The recoverable amount is the present value of the estimated future cash flow assessed and recognised for each individual asset. If it individual asset, the recoverable amount of the group of assets is the smallest group of assets that is able to

FINANCIAL STATEMENTS 063 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) The goodwill presented separately in financial statements should be on an annual basis regardless whether there exists any indicates that, for the cash-generating unit (that includes the allocated goodwill), the recoverable amount is lower than the carrying value, then an impairment loss will The mineral interests in unproved properties are single property is significant, the impairment test is of the single property. If the cost incurred to obtain features or reserve layer conditions are identical or similar to those of other adjacent properties, impairment tests are performed on the basis of a group of properties that consist of several adjacent mining areas with identical or similar geological structure features or reserve layer Once an impairment loss of these assets is recognised, it is not allowed to be reversed even if the value can be recovered in subsequent period. (16) Borrowing Costs Borrowing costs incurred that are directly attributable and gas properties, which require a substantial period of time for acquisition and construction activities to get ready for their intended use, are capitalised as part of the cost of the assets when capital expenditures and borrowing costs have already incurred and the activities of acquisition and construction necessary to prepare the assets to be ready for their intended use have commenced. The are ready for their intended use. Borrowing costs costs should be suspended during periods in which the abnormally, and the interruption lasts for more than 3 For a borrowing taken specifically for the acquisition and gas property eligible for capitalisation, the to-be-capitalised amount of interests shall be determined according to the actual costs incurred less any income earned on the unused borrowing fund as a deposit in the bank or as a temporary investment. Where a general borrowing is used for the acquisition eligible for capitalisation, the Group shall calculate and determine the to-be-capitalised amount of interests on the general borrowing by multiplying the part of the accumulative asset disbursements in excess of the weighted average asset disbursement for the specifically borrowing used. The actual rate is the rate used to expected existing period or the applicable shorter

064 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (17) Employee Compensation Employee compensation includes wages, salaries, allowances, employee welfare, social security contributions, housing provident funds, labour union funds, employee education funds and other relevant compensation incurred in exchange for services rendered by employees. Except for severance pay, employee compensation is recognised as a liability during the period which employees render services, and it will be allocated into relevant costs and expenses to whichever the employee service is attributable. (18) Provisions Provisions for product guarantee, quality onerous obligations, and it is probable that an outflow of economic amounts can be reliably estimated. Provisions are measured at the best estimate of the expenditures expected to be required to settle the present obligation. Factors surrounding the contingencies such as be taken into account as a whole in reaching the best money is material, the best estimate is determined by discounted amount of the provision arising from the Asset retirement obligations which meet the criteria of provisions are recognised as provisions and the amount recognised is the present value of the estimated future expenditure determined in accordance with local conditions and requirements, while a corresponding addition to the related oil and gas properties of an amount equivalent to the provision is also created. This is subsequently expenses from the assets retirement obligations for each period are recognised with the effective interest method during the useful life of the related oil and gas If the conditions for the recognition of the provisions are not met, the expenditures for the decommissioning, removal and site cleaning will be expensed in profit or

FINANCIAL STATEMENTS 065 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (19) Deferred Tax Assets and Deferred Tax Liabilities Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences (temporary differences) arising between the tax bases deductible losses, which can be utilised against the as temporary differences and a deferred tax asset is tax liabilities are not accounted for the temporary differences resulting from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profits (or deductible loss). Deferred tax assets that are expected to apply to the period when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets of the Group are recognised for deductible temporary differences and deductible losses and tax credits to the extent that it is probable that temporary differences, deductible losses and tax credits Deferred tax liabilities are recognised for taxable temporary differences arising from investments in subsidiaries, associates and jointly controlled entities, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the Deferred tax assets are recognised for deductible temporary differences arising from investments in subsidiaries, associates and jointly controlled entities, to the extent that, and only to the extent that, it is probable that the temporary differences will reverse in the foreseeable temporary differences can be utilised. Deferred tax assets and liabilities which meet the following conditions shall be presented on a net basis: · Deferred tax assets and liabilities are related to the income tax of the same entity within the Group levied by the same authority; · This entity is legally allowed to settle its

066 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (20) Revenue Recognition The amount of revenue is determined in accordance with the fair value of the contractual consideration received or receivable for the sales of goods and is shown net of discounts and returns. Revenue is recognised when specific below: (a) Sales of goods Revenue from sales of goods is recognised when the and rewards of ownership of the goods, and retains neither continuing managerial involvement nor effective control over the goods sold, and it is probable that the Group and related revenue and cost can be measured (b) Rendering of services The Group recognises its revenue from rendering of Under the percentage-of-completion method, revenue is recognised based on the costs incurred to date as a percentage of the total estimated costs to be incurred. (c) Transfer of the assets use rights Interest income is recognised on a time-proportion Revenue from operating lease is recognised using the (21) Leases Leases that transfer substantially all the risks and finance lease; other leases are operating leases. When the Group acquires an asset under a finance lower of its fair value and the present value of the minimum lease payments, each determined at the inception of the lease. If there is reasonable certainty that the Group term, the leased asset is depreciated over its estimated the shorter of the lease term and its estimated useful the value of the leased assets is recognised as interest method over the lease term, and the amortisation is accounted for in accordance with the principles of borrowing costs.

FINANCIAL STATEMENTS PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) Payments made under operating leases are charged to the lease. (22) Dividend Distribution Dividend distribution is recognised as a liability in the period in which it is approved by a resolution of shareholders’ general meeting. (23) Business Combination (a) Business combination under common control The consideration paid and the net assets obtained The difference between the carrying value of the net assets obtained and the carrying value of the consideration is adjusted against the capital surplus. If the adjusted against retained earnings. Costs incurred directly attributable to the business The transaction costs of the equity securities or debt securities issued which are attributable to the business combination are recorded in the initial recognition (b) Business combination not under common control The acquisition costs paid and the identifiable net value at the acquisition date. Where the cost of acquiree’s identifiable net assets, the difference is than the acquirer’s interest in the fair value of directly in profit or loss. Costs which are directly attributable to the The transaction costs of the equity securities or debt securities issued which are attributable to the business combination are recorded in the initial recognition (24) Basis of Preparation of Consolidated Financial Statements The scope of consolidated financial and its statements subsidiaries Subsidiaries are fully consolidated from the date consolidated from the date that control ceases. control are consolidated from the day when they are under common control with the Company of the ultimate controlling party, and their net profit earned before the combination date shall be presented separately in the consolidated income statement.

068 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) When the accounting policies and accounting periods of subsidiaries are not consistent with those of the Company, the Company will make necessary adjustments to the financial statements of the subsidiaries in accordance with the Company’s accounting policies and subsidiaries acquired from the business combination not under common control are adjusted on the basis of the fair value of the identifiable net assets at the the consolidated acquisition All material intercompany balances, transactions and unrealised gains within the Group are eliminated upon consolidation. The portion of the shareholders’ equity Company is treated as minority interests and presented separately within shareholders’ equity in the consolidated balance sheet or within net profit in the consolidated (25) Segment Reporting The Group determines its operating segments based on its organisational structure, management requirements and internal reporting system. On the basis of these disclosure of segmental information. An operating segment refers to a component of the Group that simultaneously meet the following criteria: (1) the component can generate revenue and incur expenses in ordinary activities; (2) the component’s operating results can be regularly reviewed by the Group’s management to make decisions about resource allocation to the component and assess its performance; (3) the Group can obtain financial information relating to the financial position, operating results and cash flows, etc. of the similar economic characteristics and meet certain requirements, the Group may aggregate these operating segments into a single operating segment. The Group also discloses total external revenue derived from other regions outside mainland China and the total non-current assets located in other regions outside (26) Critical Accounting Estimates and Judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and

Estimates of oil and natural gas reserves are key elements in the Group’s investment decision-making process. They are also an important element in testing for impairment. Changes in proved oil and natural gas reserves, particularly proved developed reserves, will affect unit-of-production depreciation, depletion and amortisation recorded in the income statements for property, plant and equipment related to oil and gas production activities. A reduction in proved developed reserves will increase depreciation, depletion and amortisation charges. Proved reserve estimates are subject to revision, either upward or downward, based on new information, such as from development drilling and production activities or from changes in economic factors, including product prices, contract terms, evolution of technology or development plans, etc.

Fixed assets and oil and gas properties are reviewed for possible impairments when events or changes in circumstances indicate that the carrying amount may not be recoverable. Determination as to whether and how much an asset is impaired involves management estimates and judgements such as future price of crude oil, refined and chemical products and the production profile. However, the impairment reviews and calculations are based on assumptions that are consistent with the Group’s business plans taking into account current economic conditions.

Favourable changes to some assumptions, or not updating assumptions previously made, may allow the Group to avoid the need to impair any assets, whereas unfavourable changes may cause the assets to become impaired.

Provision is recognised for the future decommissioning and restoration of oil and gas properties. The amounts of the provision recognised are the present values of the estimated future expenditures. The estimation of the future expenditures is based on current local conditions and requirements, including legal requirements, technology, price level, etc. In addition to these factors, the present values of these estimated future expenditures are also impacted by the estimation of the economic lives of oil and gas properties and estimates of discount rates. Changes in any of these estimates will impact the operating results and the financial position of the Group over the remaining economic lives of the oil and gas properties.

Value Added Tax (the “VAT”) 6%, 11%, 13% or 17% Based on taxable value added amount. Tax payable is calculated using the taxable sales amount multiplied by the applicable tax rate less current period’s deductible VAT input.

Consumption Tax Based on quantities Based on sales quantities of taxable products. RMB 1.0 yuan per litre for unleaded gasoline, RMB 0.8 yuan per litre for diesel, RMB 1.0 yuan per litre for naphtha, solvent oil and lubricant and RMB 0.8 yuan per litre for fuel oil.

Crude Oil Special Gain Levy 20% to 40% Based on the sales of domestic crude oil at prices higher than a specific level.

On November 16, 2011, the MOF, State Administration of Taxation of the PRC (the “SAT”) implemented the ‘Change of Business Tax to Value Added Tax Pilot Program’ (“Pilot Program”), which set out detailed related implementation guidance and fundamental principles. Accordingly, the Pilot Program will be applicable to the transportation and certain modern service industries in Shanghai and Beijing from January 1, 2012 and September

1, 2012, respectively in respect of which VAT will be levied in lieu of Business Tax. Part of the Group’s pipeline transmission services and research and development and technical services will be subject to VAT rate of 11% and

Pursuant to the Circular jointly issued by the MOF, the General Administration of Customs of the PRC and the State Administration of Taxation of the PRC (the “SAT”) on Issues Concerning a Proportionate Refund of VAT on Imported Natural Gas between 2011 and 2020 as well as Natural Gas Imported from Central Asia before the end of 2010 (Cai Guan Shui [2011] No.39), if the price of imported natural gas under any state-sanctioned natural gas import program is higher than the selling price fixed by the State, the VAT as paid by the Group on imported natural gas (including LNG) under the above program is refunded on a pro-rata basis by reference to the extent of the import price above the selling price fixed by the State.

Pursuant to Order 605 of the State Council in respect of its Decision on the Amendments of the Provisional Regulations Governing Resource Tax of the PRC, resource tax on crude oil and natural gas payable by entities or individuals who extract crude oil and natural gas in the territory and waters over which the PRC has jurisdiction shall be imposed on ad valorem basis at 5% to 10% with effect from November 1, 2011. Pursuant to Order 66 jointly issued by the MOF and SAT in respect of the Implementation Rules under the Provisional Regulations Governing

In accordance with the Circular jointly issued by the MOF, the General Administration of Customs of the PRC and the SAT on Issues Concerning Tax Policies for In-depth Implementation of Western Development Strategy

(Cai Shui [2011] No. 58), the corporate income tax for the enterprises engaging in the encouraged industries in the Western China Region is charged at a preferential corporate income tax rate of 15% from January 1, 2011 to

December 31, 2020. Certain branches and subsidiaries of the Company in the Western China Region obtained the approval for the use of the preferential corporate income tax rate of 15%.

Pursuant to the Notice from the MOF on the Increase of the Threshold of the Crude Oil Special Gain Levy (Cai

Qi [2011] No. 480), the threshold of the crude oil special gain levy shall be increased to US$55, with effect from November 1, 2011. Notwithstanding such adjustment, the crude oil special gain levy continues to have 5 levels and is calculated and charged according to the progressive and valorem rates on the excess amounts.

Closing Attribu- Attribu-Country Legal effective table table Type of Acquisi- of Regis- Type of repre- invest- equity voting Conso-Company sub- tion incorpo- tered Principal Legal senta- ment interest rights lidated name sidiary method ration capital activities Entity tive cost % % or not

Daqing Direct Establi- PRC 47,500 Exploration, production Limited Wang 66,720 100.00 100.00 Yes Oilfield shed and sale of crude oil liability Yong Company and natural gas com- chun Limited pany CNPC Direct Business PRC 16,100 Exploration, production Limited Sun 23,778 50.00 57.14 Yes Exploration combi- and sale of crude oil liability Long and Deve- nation and natural gas in and com- de lopment under outside the PRC pany Company common Limited control PetroChina Direct Establi- HK HK Investment holding. The Limited N/A 25,590 100.00 100.00 Yes Hong Kong shed Dollar principal activities of liability Limited (“HKD”) its subsidiaries, asso- com-7,592 ciates and jointly pany million controlled entities are the exploration, pro-duction and sale of crude oil in and outside the PRC as well as natural gas sale and transmission in the PRC

PetroChina Direct Establi- PRC 31,314 Investment holding. Limited Bo 31,314 100.00 100.00 Yes Interna- shed The principal activities liability Qiliang tional of its subsidiaries com-Investment and jointly pany Company controlled entities Limited are the exploration, development and production of crude oil, natural gas, oilsands and coalbed methane outside the PRC

PetroChina Direct Establi- PRC 14,000 Marketing of refined Limited Wang 14,857 100.00 100.00 Yes Interna- shed products and liability Lihua tional trading of crude oil com-Company and petrochemical pany Limited products, storage, investment in refining, chemical engineering, storage facilities, service station, and transportation facilities and related business in and outside the PRC

PetroChina Direct Establi- PRC 62,500 Storage, transportation Limited Huang 19,500 52.00 52.00 Yes Northwest shed and development of liability Weihe United crude oil and nature com- Pipeline gas; construction and pany Company related technology Limited consulting of petroleum and natural gas pipeline project; import and export of goods and technology; purchase and sale of materials in the PRC

PetroKazakhstan Inc. USD 1=RMB 6.1787 yuan USD 1=RMB 6.2855 yuan PetroChina Hong Kong Limited HKD 1=RMB 0.79655 yuan HKD 1=RMB 0.8109 yuan Singapore Petroleum Company Limited SGD 1=RMB 4.8470 yuan SGD 1=RMB 5.1028 yuan

Equity items except for the retained earnings, revenue, expense and cash flows items are translated into RMB at the approximate exchange rates at the date of the transactions.

Within 1 year 88,506 98 - 64,034 99 (3) 1 to 2 years 927 1 (16) 323 - (17) 2 to 3 years 232 - (2) 29 - -Over 3 years 612 1 (541) 649 1 (565) 90,277 100 (559) 65,035 100 (585)

Percentage of Provision for Percentage of Provision for Amount total balance % bad debts Amount total balance % bad debts

Within 1 year 9,515 95 - 4,097 88 -1 to 2 years 25 - - 35 1 -2 to 3 years 13 - - 8 - -Over 3 years 495 5 (452) 518 11 (460) 10,048 100 (452) 4,658 100 (460)

As of June 30, 2013, accounts receivable of the Group from shareholders who hold 5% or more of the voting rights in the Company amounted to RMB 21,955 (December 31, 2012: RMB 16,301). As of June 30, 2013, the top five debtors of accounts receivable of the Group amounted to RMB 36,585, representing 41% of total accounts receivable. During the six months ended June 30, 2013 and the six months ended June 30, 2012, the Group had no significant write-off of the provision for bad debts of accounts receivable. (b) Other receivables Group Company June December June December 30, 2013 31, 2012 30, 2013 31, 2012 Other receivables 22,383 16,708 53,108 49,092 Less: Provision for bad debts (2,544) (2,543) (765) (768) 19,839 14,165 52,343 48,324 The aging analysis of other receivables and the related provision for bad debts are analysed as follows: Group June 30, 2013 December 31, 2012 Percentage of Provision for Percentage of Provision for Amount total balance % bad debts Amount total balance % bad debts Within 1 year 17,576 79 (8) 12,473 74 (1) 1 to 2 years 1,200 5 (1) 660 4 (4) 2 to 3 years 414 2 (2) 643 4 (2) Over 3 years 3,193 14 (2,533) 2,932 18 (2,536) 22,383 100 (2,544) 16,708 100 (2,543) Company June 30, 2013 December 31, 2012 Percentage of Provision for Percentage of Provision for Amount total balance % bad debts Amount total balance % bad debts Within 1 year 50,941 96 - 47,387 96 - 1 to 2 years 722 1 - 322 1 - 2 to 3 years 313 1 (2) 454 1 (1) Over 3 years 1,132 2 (763) 929 2 (767) 53,108 100 (765) 49,092 100 (768) As of June 30, 2013, other receivables of the Group from shareholders who hold 5% or more of the voting rights in the Company amounted to RMB 3,206 (December 31, 2012: RMB 1,772).

As of June 30, 2013 and December 31, 2012, advances to suppliers of the Group are mainly aged within one

As of June 30, 2013, advances to suppliers from shareholders who hold 5% or more of the voting rights in the

(a) Principal associates and jointly controlled entities of the Group For the six months ended Country June 30, 2013 June 30, 2013 of Interest Voting Total Net incorpo- Principal Registered held rights Total Total net profit/ ration activities capital % % assets liabilities assets Revenues (loss) Dalian West PRC Production USD 258 28.44 28.44 7,762 11,679 (3,917) 14,142 (519) Pacific and sale of million Petroche- petroleum and mical Co., petrochemical Ltd. products China Marine PRC Oil import and 1,000 50.00 50.00 12,880 10,359 2,521 26,778 53 Bunker export trade (PetroChina) and Co., Ltd. transportation, sale and storage China PRC Deposits, loans, 5,441 49.00 49.00 613,230 580,987 32,243 6,442 1,954 Petroleum settlement, Finance Co., lending, bills Ltd. acceptance discounting, guarantee and other banking business Arrow Energy Australia Exploration, AUD 2 50.00 50.00 47,571 18,193 29,378 586 (2,187) Holdings Pty development Ltd. and sale of coal seam gas PetroChina PRC Storage and 40,000 50.00 50.00 83,340 2,753 80,587 1,403 566 United transportation Pipelines of natural Co., Ltd. (i) gas through pipeline, construction and related technology consulting of petroleum and natural gas pipeline (i) In June 2013, PetroChina United Pipelines Company Limited, in which the Group has a 50% equity interest, was established with an issued capital of 40,000 million.

PetroChina Hong Kong Limited 90,810 37,352 15,635 3,909 PetroChina International Investment Company Limited 89,796 62,877 7,002 (2,295) PetroChina International Company Limited 162,340 128,963 445,145 1,737 PetroChina Northwest United Pipeline Company Limited 64,674 1,648 - 545

14 FIXED ASSETS December June 31, 2012 Addition Reduction 30, 2013 Cost Buildings 164,233 4,554 (4,119) 164,668 Equipment and Machinery 735,346 23,054 (71,494) 686,906 Motor Vehicles 28,479 697 (2,140) 27,036 Other 15,991 632 (659) 15,964 Total 944,049 28,937 (78,412) 894,574 Accumulated depreciation Buildings (49,253) (3,997) 895 (52,355) Equipment and Machinery (300,037) (19,222) 23,473 (295,786) Motor Vehicles (14,804) (1,097) 666 (15,235) Other (6,442) (616) 206 (6,852) Total (370,536) (24,932) 25,240 (370,228) Fixed assets, net Buildings 114,980 112,313 Equipment and Machinery 435,309 391,120 Motor Vehicles 13,675 11,801 Other 9,549 9,112 Total 573,513 524,346 Provision for impairment Buildings (3,567) - 29 (3,538) Equipment and Machinery (24,319) - 124 (24,195) Motor Vehicles (50) - - (50) Other (98) - - (98) Total (28,034) - 153 (27,881) Net book value Buildings 111,413 108,775 Equipment and Machinery 410,990 366,925 Motor Vehicles 13,625 11,751 Other 9,451 9,014 Total 545,479 496,465 Depreciation provided on fixed assets for the six months ended June 30, 2013 was RMB 22,781. Cost transferred from construction in progress to fixed assets was RMB 25,868. As of June 30, 2013, the Group’s fixed assets under operating leases are mainly equipment and machinery, the net book value of which amounted to RMB 759. As of June 30, 2013, fixed assets of a net book value of RMB 10 are pledged as collateral for the Group’s short- term borrowings of RMB 10 (Note 22).

15 OIL AND GAS PROPERTIES December June 31, 2012 Addition Reduction 30, 2013 Cost Mineral interests in proved properties 19,063 12,914 (1,727) 30,250 Mineral interests in unproved properties 22,112 1,380 (1,079) 22,413 Wells and related facilities 1,289,038 33,882 (3,587) 1,319,333 Total 1,330,213 48,176 (6,393) 1,371,996 Accumulated depletion Mineral interests in proved properties (670) (1,945) 14 (2,601) Wells and related facilities (583,564) (47,666) 3,570 (627,660) Total (584,234) (49,611) 3,584 (630,261) Oil and gas properties, net Mineral interests in proved properties 18,393 27,649 Mineral interests in unproved properties 22,112 22,413 Wells and related facilities 705,474 691,673 Total 745,979 741,735 Provision for impairment Mineral interests in proved properties - - - - Mineral interests in unproved properties - - - - Wells and related facilities (12,396) - 67 (12,329) Total (12,396) - 67 (12,329) Net book value Mineral interests in proved properties 18,393 27,649 Mineral interests in unproved properties 22,112 22,413 Wells and related facilities 693,078 679,344 Total 733,583 729,406 Depletion provided on oil and gas properties for the six months ended June 30, 2013 was RMB 49,547. As of June 30, 2013, the asset retirement obligations capitalised in the cost of oil and gas properties amounted to RMB 66,179. Related depletion charge for the six months ended June 30, 2013 was RMB 2,990. 16 CONSTRUCTION MATERIALS The Group’s construction materials mainly represent the actual cost of materials purchased for construction projects.

17 CONSTRUCTION IN PROGRESS Propor- Including: Trans- tion of capita- ferred construc- lised to fixed tion Capita- interest assets or Other compared lised expense December oil and gas Reduc- June to budget interest for current Source Project Name Budget 31, 2012 Addition properties tion 30, 2013 % expense period of fund West of Third 38,198 12,609 6,668 19,277 50 - - Self West-East Gas Pipeline (Horgos - Zhongwei) Third Shaanxi- 10,989 1,372 315 - 1,687 95 447 21 Self & Beijing Gas Loan Pipeline PetroChina 18,658 15,846 487 - 16,333 89 258 144 Self & Sichuan project Loan with an ethylene output of 0.8 million tons per year Sino-Venezuela 49,977 1,050 164 1,214 2 35 18 Self & joint venture Loan Guangdong Petrochemical refinery project with an output of 20 million tons per year Zhongwei- 19,294 2,340 1,558 (1,215) - 2,683 71 74 47 Self & Guiyang Gas Loan pipeline Other 249,957 68,522 (55,268) (6,885) 256,326 7,505 1,719 283,174 77,714 (56,483) (6,885) 297,520 8,319 1,949 Less: Provision for impairment (115) (110) 283,059 297,410 For the six months ended June 30, 2013, the capitalised interest expense amounted to RMB 1,949 (for the six months ended June 30, 2012: RMB 2,361). The annual interest rates used to determine the capitalised amount are 5.76%.

18 INTANGIBLE ASSETS December June 31, 2012 Addition Reduction 30, 2013 Cost Land use rights 46,165 2,080 (437) 47,808 Patents 3,666 157 - 3,823 Other (i) 22,529 724 (256) 22,997 Total 72,360 2,961 (693) 74,628 Accumulated amortisation Land use rights (5,951) (729) 22 (6,658) Patents (2,261) (131) - (2,392) Other (7,029) (848) 38 (7,839) Total (15,241) (1,708) 60 (16,889) Intangible assets, net Land use rights 40,214 41,150 Patents 1,405 1,431 Other 15,500 15,158 Total 57,119 57,739 Provision for impairment (693) (4) 3 (694) Net book value 56,426 57,045 (i) Other intangible assets principally include non-proprietary technology and trademark use right etc. Amortisation provided on intangible assets for the six months ended June 30, 2013 was RMB 1,698. Research and development expenditures for the six months ended June 30, 2013 amounted to RMB 7,843 (for the six months ended June 30, 2012: RMB 5,848), which have been recognised in profit or loss. 19 GOODWILL Goodwill primarily relates to the acquisition of Singapore Petroleum Company and INEOS Refining Limited, completed in 2009 and 2011 respectively.

20 LONG-TERM PREPAID EXPENSES December June 31, 2012 Addition Reduction 30, 2013 Advance lease payments (i) 16,469 1,346 (1,123) 16,692 Other 7,882 785 (868) 7,799 Total 24,351 2,131 (1,991) 24,491 (i) Advance lease payments are principally for use of land sub-leased from entities other than the PRC land authorities. Amortisation provided on long-term prepaid expenses for six months ended June 30, 2013 was RMB 1,867. 21 PROVISION FOR ASSETS December Reduction June 31, 2012 Addition Reversal Write-off 30, 2013 Bad debts provision 3,142 1 (28) 2 3,117 Including: Bad debts provision for accounts receivable 585 - (25) (1) 559 Bad debts provision for other receivables 2,543 1 (3) 3 2,544 Bad debts provision for advances to suppliers 14 - - - 14 Provision for declines in the value of inventories 645 242 (22) (108) 757 Provision for impairment of available-for-sale financial assets 375 - - (3) 372 Provision for impairment of long-term equity investments 188 - - - 188 Provision for impairment of fixed assets 28,034 - - (153) 27,881 Provision for impairment of oil and gas properties 12,396 - - (67) 12,329 Provision for impairment of construction in progress 115 - - (5) 110 Provision for impairment of intangible assets 693 4 - (3) 694 Total 45,588 247 (50) (337) 45,448

22 SHORT-TERM BORROWINGS June 30, 2013 December 31, 2012 Guarantee - RMB 80 130 Pledge - RMB 27 10 Impawn - RMB 882 -Unsecured - RMB 53,981 97,058 Pledge - USD 30 -Unsecured - USD 74,790 42,277 Unsecured - JPY 3,252 3,934 Unsecured - Other 476 -133,518 143,409 As of June 30, 2013, the above-mentioned guaranteed borrowings which were guaranteed by CNPC and its subsidiaries amounted to RMB 80. As of June 30, 2013, the above-mentioned pledged RMB borrowings were secured by fixed assets of a net book value of RMB 10 (December 31, 2012: fixed assets of a net book value of RMB 11) as collateral. As of June 30, 2013, the above-mentioned impawned RMB borrowings were impawned by notes receivable of a net book value of RMB 882 as collateral. The weighted average interest rate for short-term borrowings as of June 30, 2013 is 2.90 % per annum (December 31, 2012: 3.73%). 23 NOTES PAYABLE As of June 30, 2013 and December 31, 2012, notes payable mainly represented bank accepted notes. All notes are matured within one year. 24 ACCOUNTS PAYABLE As of June 30, 2013, accounts payable included amounts payable to shareholders who hold 5% or more of the voting rights in the Company RMB 86,377 (December 31, 2012: RMB 78,161). As of June 30, 2013, accounts payable aged over one year amounted to RMB 24,783 (December 31, 2012: RMB 26,940), and mainly comprised of payables to several suppliers and were not settled.

25 ADVANCES FROM CUSTOMERS As of June 30, 2013, advances from customers included amount payable to shareholders who hold 5% or more of the voting rights in the Company RMB 1,872 (December 31, 2012: RMB 1,159). 26 EMPLOYEE COMPENSATION PAYABLE December 31, 2012 Addition Reduction June 30, 2013 Wages, salaries and allowances 1,473 36,549 (33,717) 4,305 Staff Welfare - 4,015 (2,266) 1,749 Social security contributions 776 11,581 (11,332) 1,025 Including: Medical insurance 535 3,125 (2,956) 704 Basic endowment insurance 123 5,844 (5,832) 135 Unemployment insurance 38 557 (556) 39 Work-related injury insurance 27 300 (295) 32 Maternity insurance 13 147 (146) 14 Housing provident funds 72 3,389 (3,386) 75 Labour union funds and employee education funds 1,771 1,395 (917) 2,249 Other 69 114 (139) 44 4,161 57,043 (51,757) 9,447 As of June 30, 2013, employee benefits payable did not contain any balance in arrears. 27 TAXES PAYABLE June 30, 2013 December 31, 2012 Income tax payable 4,013 12,708 Consumption tax payable 6,842 9,846 Crude oil special gain levy payable 17,272 20,573 Other 18,424 28,918 46,551 72,045

28 OTHER PAYABLES As of June 30, 2013, other payables included amounts payable to shareholders who hold 5% or more of the voting rights in the Company RMB 2,434 (December 31, 2012: RMB 1,668). As of June 30, 2013, other payables mainly comprised deposits and payments made on behalf, and other payables aged over one year amounted to RMB 8,273 (December 31, 2012: RMB 7,541). 29 PROVISIONS December 31, 2012 Addition Reduction June 30, 2013 Assets retirement obligations 83,928 3,488 (119) 87,297 Assets retirement obligations are related to oil and gas properties. 30 CURRENT PORTION OF NON-CURRENT LIABILITIES June 30, 2013 December 31, 2012 Long-term borrowings due within one year Guarantee - RMB 9 36 Guarantee - USD 39 - Guarantee - Other 20 23 Unsecured - RMB 15,902 6,048 Unsecured - USD 18,199 207 Unsecured - Other 10 24 34,179 6,338 Debentures payable due within one year 16,500 1,500 50,679 7,838 The above-mentioned guaranteed borrowings due within one year were mainly guaranteed by CNPC and its subsidiaries.

The five largest long-term borrowings due within one year: June 30, 2013 December 31, 2012 Starting Termination Foreign Foreign date date Currency Rate currency RMB currency RMB CNPC International April 15, May 15, USD LIBOR plus 1,878 11,604 - - Ltd. 2013 2014 1.70% China Petroleum April 22, March 21, RMB 4.55% - 10,000 - 10,000 Finance Co., Ltd. 2011 2014 China Petroleum January 1, February 11, USD LIBOR plus 489 3,018 - - Finance Co., Ltd. 2013 2014 2.90% CNPC Finance(HK) June 23, June 22, USD LIBOR plus 350 2,161 350 2,200 Limited 2011 2014 2.00% China Petroleum March 3, March 3, Finance Co., Ltd. 2011 2014 RMB 5.40% - 1,900 - 1,900 28,683 14,100 31 LONG-TERM BORROWINGS June 30, 2013 December 31, 2012 Guarantee - RMB 211 150 Guarantee - USD 261 9 Guarantee - Other 126 153 Impawn - RMB 74 - Impawn - USD 5,252 3,708 Unsecured - RMB 274,555 193,145 Unsecured - USD 28,771 16,509 Unsecured - Other 171 204 309,421 213,878 Less: Long-term borrowings due within one year (Note 30) (34,179) (6,338) 275,242 207,540 The above-mentioned guaranteed borrowings were mainly guaranteed by CNPC and its subsidiaries. The above-mentioned impawned USD borrowings were impawned by time deposit of USD 850 million.

The maturities of long-term borrowings at the dates indicated are analysed as follows: June 30, 2013 December 31, 2012 Between one and two years 58,426 65,731 Between two and five years 98,098 76,947 After five years 118,718 64,862 275,242 207,540 The weighted average interest rate for long-term borrowings as of June 30, 2013 is 4.50% (December 31, 2012: 4.56%). The fair values of long-term borrowings amounted to RMB 196,099 (December 31, 2012: RMB 209,484). The fair values are based on discounted cash flows using applicable discount rates based upon the prevailing market rates as at balance sheet date of the Group’s availability of financial instruments (terms and characteristics similar to the above-mentioned borrowings). The five largest long-term borrowings: June 30, 2013 December 31, 2012 Starting Termination Foreign Foreign date date Currency Rate currency RMB currency RMB China Petroleum September 26, September 7, RMB 4.70% - 20,000 - 6,000 Finance Co., Ltd. 2012 2018 China Petroleum February 28, February 20, RMB 4.53% - 20,000 - - Finance Co., Ltd. 2013 2018 China Petroleum April 10, March 23, RMB 4.80% - 20,000 - - Finance Co., Ltd. 2013 2020 Bank of Kunlun Co., January 4, March 14, RMB 4.84% - 20,000 - - Ltd. 2013 2022 China Petroleum October 22, October 22, Finance Co., Ltd. 2011 2015 RMB 3.95% - 10,000 - 10,000 90,000 16,000

32 DEBENTURES PAYABLE Annual Issue Term of interest December June Debentures’ Name date Debentures rate% 31, 2012 Addition Reduction 30, 2013 2003 PetroChina Company October 28, 10 - year 4.11 1,500 - - 1,500 Limited Corporate 2003 debentures 2009 PetroChina Company May 26, 5 - year 3.35 15,000 - - 15,000 Limited third tranche 2009 medium-term notes 2010 PetroChina Company February 5, 7 - year 4.60 11,000 - - 11,000 Limited first tranche 2010 medium-term notes 2010 PetroChina Company May 19, 7 - year 3.97 20,000 - - 20,000 Limited second tranche 2010 medium-term notes (i) 2010 PetroChina Company May 19, 5 - year 3.97 20,000 - - 20,000 Limited third tranche 2010 medium-term notes 2012 PetroChina Company November 22, 5 - year 4.55 16,000 - - 16,000 Limited Corporate 2012 Debentures first tranche-5 years 2012 PetroChina Company November 22, 10 - year 4.90 2,000 - - 2,000 Limited Corporate 2012 Debentures first tranche-10 years 2012 PetroChina Company November 22, 15 - year 5.04 2,000 - - 2,000 Limited Corporate 2012 Debentures first tranche-15 years 2013 PetroChina Company March 15, 5 - year 4.47 - 16,000 - 16,000 Limited Corporate 2013 Debentures first tranche-5 years 2013 PetroChina Company March 15, 10 - year 4.88 - 4,000 - 4,000 Limited Corporate 2013 Debentures first tranche-10 years Other 234 - (78) 156 87,734 20,000 (78) 107,656 Less: Debentures payable due within one year (1,500) (16,500) 86,234 91,156 (i) The 2010 second tranche medium-term notes has a term of 7 years, with an option to determine the interest rate for the issuer and a put option for the investors at the end of the fifth year. The above-mentioned debentures were issued at the par value, without premium or discount.

The fair values of the debentures amounted to RMB 106,485 (December 31, 2012: RMB 86,427). The fair values are based on discounted cash flows using an applicable discount rate which is based on the prevailing market rates as at the balance sheet date of the Group’s availability of financial instruments (terms and characteristics similar to the above-mentioned debentures payable). 33 DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets and liabilities before offset are listed as below: (a) Deferred tax assets June 30, 2013 December 31, 2012 Deductible Deductible Deferred temporary Deferred temporary tax assets differences tax assets differences Provision for impairment of assets 5,678 25,316 5,972 26,473 Wages and welfare 1,125 5,364 765 3,521 Carry forward of losses 1,752 4,241 1,770 4,235 Other 16,505 68,311 14,178 58,614 25,060 103,232 22,685 92,843 (b) Deferred tax liabilities June 30, 2013 December 31, 2012 Taxable Taxable Deferred temporary Deferred temporary tax liabilities differences tax liabilities differences Depreciation and depletion of fixed assets and oil and gas properties 40,091 159,092 39,099 152,509 Other 4,176 26,238 4,352 26,452 44,267 185,330 43,451 178,961 Deferred tax assets and liabilities after offset are listed as below: June 30, 2013 December 31, 2012 Deferred tax assets 1,452 1,443 Deferred tax liabilities 20,659 22,209

34 SHARE CAPITAL June 30, 2013 December 31, 2012 H shares 21,099 21,099 A shares 161,922 161,922 183,021 183,021 The assets and liabilities injected by CNPC in 1999 had been valued by China Enterprise Appraisal Co., The net assets injected by CNPC had been exchanged for 160 billion state-owned shares of the Company with a par value of RMB 1.00 yuan per share. The excess of the value of the net assets injected over the par value of the state-owned shares had been recorded as capital surplus. Pursuant to the approval of China Securities Regulatory Commission, on April 7, 2000, the Company issued 17,582,418,000 foreign capital stock with a par value of RMB 1.00 yuan per share, in which 1,758,242,000 shares were converted from the prior state-owned shares of the Company owned by CNPC. The above-mentioned foreign capital stock represented by 13,447,897,000 H shares and 41,345,210 ADS (each representing 100 H shares), were listed on the Stock Exchange of Hong Kong Limited and the New York Stock Exchange Inc. on April 7, 2000 and April 6, 2000, respectively. The Company issued 3,196,801,818 new H shares with a par value of RMB 1.00 yuan per share on September 15, 2005. CNPC also converted 319,680,182 state-owned shares it held into H shares and sold them concurrently with PetroChina’s issuance of new H shares. The Company issued 4,000,000,000 A shares with a par value of RMB 1.00 yuan per share on October 31, 2007. The A shares were listed on the Shanghai Stock Exchange on November 5, 2007. Following the issuance of the A shares, all the existing state-owned shares issued before November 5, 2007 held by CNPC have been registered with the China Securities Depository and Clearing Corporation Limited as A shares. 35 CAPITAL SURPLUS December June 31, 2012 Addition Reduction 30, 2013 Capital premium 73,201 - (6) 73,195 Other capital surplus Capital surplus under the old CAS 40,955 - - 40,955 Changes in fair values of available-for-sale financial assets 136 - (27) 109 Other 1,586 1 (193) 1,394 115,878 1 (226) 115,653

36 SURPLUS RESERVES December June 31, 2012 Addition Reduction 30, 2013 Statutory Surplus Reserves 161,583 - - 161,583 Discretionary Surplus Reserves 40 - - 40 161,623 - - 161,623 Pursuant to the Company Law of PRC, the Company’s Articles of Association and the resolution of Board of Directors, the Company is required to transfer 10% of its net profit to a Statutory Surplus Reserves. Appropriation to the Statutory Surplus Reserves may be ceased when the fund aggregates to 50% of the Company’s registered capital. The Statutory Surplus Reserves may be used to make good previous years’ losses or to increase the capital of the Company upon approval. The Discretionary Surplus Reserves is approved by a resolution of shareholders’ general meeting after Board of Directors’ proposal. The Company may convert its Discretionary Surplus Reserves to make good previous years’ losses or to increase the capital of the Company upon approval. The Company has not extracted Discretionary Surplus Reserves for the six months ended June 30, 2013 (for the six months ended June 30, 2012: None). 37 UNDISTRIBUTED PROFITS For the six months ended June 30, 2013 Undistributed profits at beginning of the period 598,686 Add: Net profit attributable to equity holders of the Company 65,521 Less: Ordinary share dividends payable (23,985) Other (2) Undistributed profits at end of the period 640,220 Authorised by May 23, 2013 shareholders’ meeting, the Board of Directors decided to distribute interim dividends in respect of 2013 of RMB 0.16110 yuan per share, amounting to a total of RMB 29,485, according to the issued 183,021 million shares.

38 MINORITY INTERESTS Minority interests attributable to minority shareholders of subsidiaries June 30, 2013 December 31, 2012 CNPC Exploration and Development Company Limited 48,436 47,109 PetroKazakhstan Inc. 3,846 3,354 KunLun Energy Company Limited 14,893 14,047 PetroChina Northwest United Pipeline Company Limited 30,253 17,991 Other 34,838 34,118 132,266 116,619 39 OPERATING INCOME AND COST OF SALES Group For the six For the six months ended months ended June 30, 2013 June 30, 2012 Income from principal operations (a) 1,082,637 1,029,538 Income from other operations (b) 18,459 17,123 1,101,096 1,046,661 Group For the six For the six months ended months ended June 30, 2013 June 30, 2012 Cost of sales from principal operations (a) 819,387 750,905 Cost of sales from other operations (b) 18,375 16,250 837,762 767,155 Income from the Group’s five largest customers for the six months ended June 30, 2013 was RMB 126,203, representing 11% of the Group’s total operating income. Company For the six For the six months ended months ended June 30, 2013 June 30, 2012 Income from principal operations (a) 646,764 632,625 Income from other operations (b) 13,732 12,290 660,496 644,915

Company For the six For the six months ended months ended June 30, 2013 June 30, 2012 Cost of sales from principal operations (a) 479,255 464,847 Cost of sales from other operations (b) 13,641 11,657 492,896 476,504 Income from the Company’s five largest customers for the six months ended June 30, 2013 was RMB 71,605, representing 11% of the Company’s total operating income. (a) Income and cost of sales from principal operations Group For the six months For the six months ended June 30, 2013 ended June 30, 2012 Income Cost Income Cost Exploration and Production 378,551 201,143 385,309 188,883 Refining and Chemicals 432,845 372,064 429,841 384,239 Marketing 937,037 909,175 894,917 860,393 Natural gas and Pipeline 104,340 107,241 97,104 94,733 Head Office and Other 156 45 162 81 Intersegment elimination (770,292) (770,281) (777,795) (777,424) Total 1,082,637 819,387 1,029,538 750,905 Company For the six months For the six months ended June 30, 2013 ended June 30, 2012 Income Cost Income Cost Exploration and Production 295,082 204,077 302,399 201,022 Refining and Chemicals 431,521 368,683 429,637 384,130 Marketing 435,065 414,972 433,449 407,236 Natural gas and Pipeline 77,665 83,849 66,778 71,149 Head Office and Other 28 22 60 58 Intersegment elimination (592,597) (592,348) (599,698) (598,748) Total 646,764 479,255 632,625 464,847

(b) Income and cost of sales from other operations Group For the six months For the six months ended June 30, 2013 ended June 30, 2012 Income Cost Income Cost Sale of materials 3,774 3,683 4,091 3,899 Other 14,685 14,692 13,032 12,351 Total 18,459 18,375 17,123 16,250 Company For the six months For the six months ended June 30, 2013 ended June 30, 2012 Income Cost Income Cost Sale of materials 2,513 2,316 2,363 2,170 Other 11,219 11,325 9,927 9,487 Total 13,732 13,641 12,290 11,657 40 TAX AND LEVIES ON OPERATIONS For the six For the six months ended months ended June 30, 2013 June 30, 2012 Business tax 627 814 City maintenance and construction tax 6,705 6,660 Educational surcharge 4,538 4,541 Consumption tax 49,976 49,223 Resource tax 14,191 14,144 Crude oil special gain levy 37,073 42,612 Other 6,825 6,325 119,935 124,319

41 SELLING EXPENSES For the six For the six months ended months ended June 30, 2013 June 30, 2012 Employee compensation costs 9,147 8,346 Depreciation, depletion and amortisation 3,372 3,133 Transportation expense 7,192 6,923 Lease, packing and warehouse storage expenses 3,263 2,972 Other 4,619 4,950 27,593 26,324 42 GENERAL AND ADMINISTRATIVE EXPENSES For the six For the six months ended months ended June 30, 2013 June 30, 2012 Employee compensation costs 13,776 11,769 Depreciation, depletion and amortisation 3,360 3,020 Repair expense 4,821 4,564 Lease, packing and warehouse storage expenses 2,389 2,044 Safety Fund 3,456 3,535 Other Taxes 3,876 3,771 Technology service expense 3,989 2,479 Other 6,989 7,172 42,656 38,354 43 FINANCE EXPENSES For the six For the six months ended months ended June 30, 2013 June 30, 2012 Interest expense 10,735 8,565 Less: Interest income (717) (992) Exchange losses 2,474 1,566 Less: Exchange gains (2,034) (1,373) Other 529 286 10,987 8,052

FINANCIAL STATEMENTS 099 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) 44 ASSET IMPAIRMENT LOSSES For the six For the six months ended months ended June 30, 2013 June 30, 2012 Impairment losses for bad debts provision (27) (20) Impairment losses for declines in the value of inventories 220 494 Impairment losses for fixed assets and oil and gas properties - 981 193 1,455 45 INVESTMENT INCOME Group For the six For the six months ended months ended June 30, 2013 June 30, 2012 Gain on available-for-sale financial assets 344 323 Share of profit of associates and jointly controlled entities 4,359 4,739 Gain/(loss) on disposal of associates and jointly controlled entities 21 (2) Other 54 143 4,778 5,203 For the six months ended June 30, 2013 the investment income from the top 5 long-term equity investments accounted for using the equity method which accounted for the highest proportion of the Group’s profit before taxation was RMB 4,123 (for the six months ended June 30, 2012: RMB 4,474). Company For the six For the six months ended months ended June 30, 2013 June 30, 2012 Gain on available-for-sale financial assets 311 26 Share of profit of associates and jointly controlled entities (3,422) 1,235 Dividends declared by subsidiaries 32,614 34,607 Loss on disposal of associates and jointly controlled entities - (2) Loss on disposal of subsidiaries (1) (1) Other (1) (3) 29,501 35,862 For the six months ended June 30, 2013 the investment income from the top 5 long-term equity investments accounted for using the equity method which accounted for the highest proportion of the Company’s profit before taxation was RMB 1,045 (for the six months ended June 30, 2012: RMB 1,191).

100 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) 46 NON-OPERATING INCOME AND EXPENSES (a) Non-operating income Amounts included in non-For the six For the six recurring Profit/Loss Items months ended months ended for the six months ended June 30, 2013 June 30, 2012 June 30, 2013 Gains on disposal of fixed assets and oil and gas properties 39 89 39 Government grants (i) 4,762 3,929 641 Gain on investment of certain pipeline net assets and operations (ii) 24,822 - 24,822 Other 475 598 475 30,098 4,616 25,977 (i) Comprises proportionate refund of import value-added tax relating to the import of natural gas (including liquefied natural gas) provided by the PRC government. (ii) In June 2013, the Company entered into a contract with two other parties to establish a jointly controlled entity named PetroChina United Pipelines Co., Ltd. (the “JV Company”). The Company contributed certain pipeline net assets and operations to the JV Company and holds 50% equity interest in the JV Company. The other parties contributed cash and together hold the remaining 50% equity interest in the JV Company. The gain represents the gain realised on the contribution of the abovementioned pipeline net assets and operations into the jointly controlled entity. (b) Non-operating expenses Amounts included in non-For the six For the six recurring Profit/Loss Items months ended months ended for the six months ended June 30, 2013 June 30, 2012 June 30, 2013 Loss on disposal of fixed assets and oil and gas properties 504 1,184 504 Fines 131 53 131 Donation 91 53 91 Extraordinary loss 56 70 56 Other 2,303 1,870 2,303 3,085 3,230 3,085

FINANCIAL STATEMENTS PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) 47 TAXATION For the six months For the six months ended June 30, 2013 ended June 30, 2012 Income taxes 22,559 20,444 Deferred taxes (1,355) (2,681) 21,204 17,763 The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the corporate income tax rate in the PRC applicable to the Group as follows: For the six months For the six months ended June 30, 2013 ended June 30, 2012 Profit before taxation 93,761 87,591 Tax calculated at a tax rate of 25% 23,440 21,898 Prior year tax return adjustment (2) 1,101 Effect of income taxes from international operations in excess of taxes at the PRC statutory tax rate 1,357 1,911 Effect of preferential tax rate (6,195) (6,463) Tax effect of income not subject to tax (613) (2,495) Tax effect of expenses not deductible for tax purposes 3,217 1,811 Taxation 21,204 17,763 48 EARNINGS PER SHARE Basic and diluted earnings per share for the six months ended June 30, 2013 and June 30, 2012 have been computed by dividing profit attributable to owners of the Company by the 183,021 million shares issued and outstanding during the period. There are no potential dilutive ordinary shares, and the diluted earnings per share are equal to the basic earnings per share.

102 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) 49 OTHER COMPREHENSIVE INCOME For the six months For the six months ended June 30, 2013 ended June 30, 2012 Fair value loss from available-for-sale financial assets, net of tax (23) (5) Share of the other comprehensive (loss) / income of associates and joint ventures accounted for using the equity method (162) 131 Sub-total (185) 126 Currency translation differences (7,114) 1,098 Other comprehensive income (7,299) 1,224 50 NOTES TO CONSOLIDATED AND COMPANY CASH FLOWS (a) Reconciliation from the net profit to the cash flow operating activities Group Company For the six For the six For the six For the six months months months months ended June ended June ended June ended June 30, 2013 30, 2012 30, 2013 30, 2012 Net profit 72,557 69,828 70,744 56,300 Add: Impairment of asset, net 193 1,455 170 1,224 Depreciation and depletion of fixed assets and oil and gas properties 72,328 69,996 47,781 46,191 Amortisation of intangible assets 1,698 1,439 1,451 1,192 Amortisation of long-term prepaid expenses 1,867 1,630 1,622 1,399 Loss on disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets 461 1,105 459 1,099 Capitalised exploratory costs charged to expense 6,600 7,810 6,326 7,242 Safety fund reserve 2,827 3,434 2,287 2,933 Finance expense 10,018 7,573 10,569 8,328 Investment income (4,778) (5,203) (29,501) (35,862) (Decrease) / increase in deferred taxation (1,355) (2,681) 758 (873) Decrease / (increase) in inventories 1,262 (32,894) 1,970 (19,692) Increase in operating receivables (51,581) (23,867) (52,966) (51,534) Decrease in operating payables (10,040) (51,619) (329) (29,293) Net cash from operating activities 102,057 48,006 61,341 (11,346)

FINANCIAL STATEMENTS 103 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (b) Net increase in cash and cash equivalents Group Company For the six For the six For the six For the six months months months months ended June ended June ended June ended June 30, 2013 30, 2012 30, 2013 30, 2012 Cash at end of the period 150,092 73,351 116,855 40,178 Less: Cash at beginning of the period (43,395) (61,172) (11,574) (38,794) Add: Cash equivalents at end of the period - - - -Less: Cash equivalents at beginning of the period - - - -Increase in cash and cash equivalents 106,697 12,179 105,281 1,384 (c) Cash and cash equivalents Group Company June December June December 30, 2013 31, 2012 30, 2013 31, 2012 Cash at bank and on hand 158,042 49,953 116,855 11,574 Less: Time deposits with maturities over 3 months (7,950) (6,558) - -Cash and cash equivalents at end of the period 150,092 43,395 116,855 11,574 51 SEGMENT REPORTING The Group is principally engaged in a broad range of petroleum related products, services and activities. The Group’s operating segments comprise: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. On the basis of these operating segments, the management of the Company assesses the segmental operating results and allocates resources. Sales between operating segments are conducted principally at market prices. Additionally, the Group has presented geographical information based on entities located in regions with similar risk profile. The Exploration and Production segment is engaged in the exploration, development, production and marketing of crude oil and natural gas. The Refining and Chemicals segment is engaged in the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, and derivative petrochemical products and other chemical products.

104 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) The Marketing segment is engaged in the marketing of refined products and trading business. The Natural Gas and Pipeline segment is engaged in the transmission of natural gas, crude oil and refined products and the sale of natural gas. The Head Office and Other segment relates to cash management and financing activities, the corporate center, research and development, and other business services supporting the operating business segments of the Group. The accounting policies of the operating segments are the same as those described in Note 4 - “Principal Accounting Policies and Accounting Estimates”. (1) Operating segments (a) Segment information as of and for the six months ended June 30, 2013 is as follows: Exploration Refining Natural Head and and Gas and Office and Production Chemicals Marketing Pipeline Other Total Revenue 385,456 436,437 943,248 105,583 664 1,871,388 Less: Intersegment revenue (306,684) (338,619) (119,068) (5,845) (76) (770,292) Revenue from external customers 78,772 97,818 824,180 99,738 588 1,101,096 Segment expenses (i) (217,068) (164,673) (609,023) (28,292) (8,890) (1,027,946) Segment result 99,582 (14,251) 3,528 (7,305) (8,404) 73,150 Unallocated expenses (6,402) Operating profit 66,748 Segment assets 1,132,115 351,528 404,990 459,702 1,584,989 3,933,324 Other assets 12,549 Elimination of intersegment balances (ii) (1,604,458) Total assets 2,341,415 Segment liabilities 417,187 140,294 215,577 169,258 745,354 1,687,670 Other liabilities 67,210 Elimination of intersegment balances (ii) (646,995) Total liabilities 1,107,885 Depreciation, depletion and amortisation 54,294 9,298 5,319 6,262 720 75,893 Asset impairment losses (21) 185 32 (3) - 193 Capital expenditure 76,446 4,440 1,625 25,160 536 108,207

FINANCIAL STATEMENTS 105 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (b) Segment information as of and for the six months ended June 30, 2012 is as follows: Exploration Refining Natural Head and and Gas and Office and Production Chemicals Marketing Pipeline Other Total Revenue 392,460 433,149 900,111 98,062 674 1,824,456 Less: Intersegment revenue (312,390) (343,150) (111,691) (10,494) (70) (777,795) Revenue from external customers 80,070 89,999 788,420 87,568 604 1,046,661 Segment expenses (i) (205,880) (161,101) (554,845) (27,659) (6,667) (956,152) Segment result 115,021 (27,157) 10,344 (1,661) (6,038) 90,509 Unallocated expenses (4,304) Operating profit 86,205 Segment assets 1,031,244 350,362 371,849 382,375 1,486,730 3,622,560 Other assets 1,781 Elimination of intersegment balances (ii) (1,572,908) Total assets 2,051,433 Segment liabilities 355,802 144,454 224,540 167,632 642,586 1,535,014 Other liabilities 74,768 Elimination of intersegment balances (ii) (689,510) Total liabilities 920,272 Depreciation, depletion and amortisation 50,623 7,868 4,969 8,990 615 73,065 Asset impairment losses (9) 1,147 319 (2) - 1,455 Capital expenditure 69,006 9,279 2,495 30,768 130 111,678 (i) Segment expenses include operating costs, tax and levies on operations, and selling, general and administrative expenses. (ii) Elimination of intersegment balances represents elimination of intersegment accounts and investments. (2) Geographical information For the six months ended For the six months ended Revenue from external customers June 30, 2013 June 30, 2012 Mainland China 733,032 713,942 Other 368,064 332,719 1,101,096 1,046,661 Non-current assets (i) June 30, 2013 June 30, 2012 Mainland China 1,547,028 1,400,074 Other 197,198 167,375 1,744,226 1,567,449 (i) Non-current assets mainly include non-current assets other than financial instruments and deferred tax assets.

106 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) 52 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (1) Parent Company (a) General information of parent company CNPC, the immediate parent of the Company, is a state-controlled enterprise directly controlled by the PRC government. The PRC government is the Company’s ultimate controlling party. Type of Place of Legal Legal Entity incorporation representative Principal activities Oil and gas exploration and development, State-owned refining and petrochemical, oil product China National and state- marketing, oil and gas storage and Petroleum PRC Zhou Jiping controlled transportation, oil trading, engineering Corporation enterprises and technical services and petroleum equipment manufacturing (b) Equity interest and voting rights of parent company June 30, 2013 December 31, 2012 Equity interest % Voting rights % Equity interest % Voting rights % China National Petroleum Corporation 86.51 86.51 86.51 86.51 (2) Subsidiaries Details about subsidiaries and related information are disclosed in Note 6(1). (3) Nature of Related Parties that are not controlled by the Company Names of related parties Relationship with the Company Dalian West Pacific Petrochemical Co., Ltd Associate China Marine Bunker (Petrochina) Co., Ltd Jointly controlled entity Arrow Energy Holdings Pty Ltd. Jointly controlled entity PetroChina United Pipelines Company Limited Jointly controlled entity CNPC Bohai Drilling Engineering Co., Ltd Fellow subsidiary of CNPC CNPC Oriental Geophysical Exploration Co., Ltd Fellow subsidiary of CNPC CNPC Chuanqing Drilling Engineering Co., Ltd Fellow subsidiary of CNPC Daqing Petroleum Administrative Bureau Fellow subsidiary of CNPC Liaohe Petroleum Exploration Bureau Fellow subsidiary of CNPC China Petroleum Pipeline Bureau Fellow subsidiary of CNPC CNPC Transportation Co., Ltd Fellow subsidiary of CNPC CNPC Material Company Fellow subsidiary of CNPC China Petroleum Finance Co., Ltd (the “CP Finance”) Fellow subsidiary of CNPC China National Oil and Gas Exploration and Development Corporation Fellow subsidiary of CNPC China National United Oil Corporation Fellow subsidiary of CNPC

FINANCIAL STATEMENTS 107 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (4) Summary of Significant Related Party transactions (a) Related party transactions with CNPC and its subsidiaries: On August 25, 2011, on the basis of Comprehensive Product and Services Agreement amended in 2008, the Company and CNPC entered into a new Comprehensive Products and Services Agreement (“the Comprehensive Products and Services Agreement”) for a period of three years which took effect on January 1, 2012. The Comprehensive Products and Services Agreement provides for a range of products and services which may be required and requested by either party. The products and services to be provided by the CNPC and its subsidiaries to the Group under the Comprehensive Products and Services Agreement include construction and technical services, production services, supply of material services, social services, ancillary services and financial services. The products and services required and requested by either party are provided in accordance with (1) government-prescribed prices; or (2) where there is no government-prescribed price, with reference to relevant market prices; or(3) where neither (1) nor (2) is applicable, the actual cost incurred or the agreed contractual price.On August 25, 2011, based on the Land Use Rights Leasing Contract signed in 2000, the Company andCNPC entered into a Supplemental Land Use Rights Leasing Contract which took effect on January 1, 2012.The Supplemental Land Use Rights Leasing Contract provides for the lease of land covering an aggregate area of approximately 1,783 million square meters located throughout the PRC at a maximum annual fee of RMB 3,892.The Supplemental Land Use Rights Leasing Contract will expire at the same time as the Land Use Rights LeasingContract. The area and total fee payable for the lease of all such property may, after three years, be adjusted with the Company’s operating needs and by reference to market price. On August 25, 2011, based on the Buildings Leasing Contract and Supplemental Building Leasing Agreement, the Company and CNPC entered into a Revised Buildings Leasing Contract which took effective thereafter. Under this contract, buildings covering an aggregate area of 734,316 square meters were leased at an average annual fee of RMB 1,049 yuan per square meter. The Revised Building Leasing Contract will expire at the same time as the Building Leasing Agreement. The area and total fee payable for the lease of all such property may, after three years, be adjusted with the Company’s operating needs and by reference to market price which the adjusted prices will not exceed.

108 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITEDUNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) For the six For the six months ended months ended Notes June 30, 2013 June 30, 2012 Sales of goods and services rendered to CNPC and its subsidiaries (1) 44,392 34,809 Purchase of goods and services from CNPC and its subsidiaries: Fees paid for construction and technical services (2) 61,256 48,601 Fees for production services (3) 70,295 63,268 Social services charges (4) 1,463 1,421 Ancillary services charges (5) 1,801 1,899 Material supply services (6) 3,509 3,138 Financial services Interest income (7) 331 214 Interest expense (8) 8,056 5,723 Other financial service expense (9) 537 492 Rents and other payments made under financial leasing (10) 93 -Rental paid to CNPC (11) 1,554 1,219 Purchases of assets from CNPC and its subsidiaries (12) 159 123 Notes: (1)Primarily crude oil, natural gas, refined products, chemical products and the supply of water, electricity, gas, heat, measurement, quality inspection,etc. (2)Construction and technical services comprise geophysical survey, drilling, well cementing, logging, well testing, oil testing, oilfield construction, refineries and chemical plants construction, engineering design and supervision, repair of equipment, etc.(3)Production services comprise the repair of machinery and equipments, supply of water, electricity and gas, provision of services such as communications, transportation, fire fighting, asset leasing, environmental protection and sanitation, maintenance of roads, manufacture of replacement parts and machinery, etc. (4)Social services comprise mainly security service, education, hospitals, preschool, etc. (5)Ancillary services comprise mainly property management and provision of training centres, guesthouses, canteens, public shower rooms, etc. (6)Material supply services comprise mainly purchase of materials, quality control, storage of materials and delivery of materials, etc. (7)The bank deposits in CNPC and fellow CNPC subsidiaries as of June 30, 2013 were RMB 52,489 (December 31, 2012:RMB 4,394). (8)The loans from CNPC and fellow CNPC subsidiaries including short-term borrowings, long-term borrowings due within one year and long-term borrowings as of June 30, 2013 were RMB 342,049 (December 31,2012: RMB 273,086). (9)Other financial service expense primarily refers to expense of insurance and other services.(10) Rents and other payments made under financial leasing represent the payable by the Group (including all rents, leasing service fees and prices for exercising purchase options) for the period according to the financial leasing agreements entered into by the Group and CNPC and its fellow subsidiaries. (11) Rental was paid for the operating lease of land and buildings at the prices prescribed in the Building and Land UseRights leasing contract with CNPC. (12) Purchases of assets principally represent the purchases of manufacturing equipment, office equipment and transportation equipment.

FINANCIAL STATEMENTS 109 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (b) Related party transactions with associates and jointly controlled entities:The transactions between the Group and its associates and jointly controlled entities are conducted at government-prescribed prices or market prices. For the six For the six months ended months ended June 30, 2013 June 30, 2012 (a) Sales of goods - Crude Oil 2,761 69 - Refined products 15,207 6,385 - Chemical products 271 331 - Natural gas 74 -(b) Sales of services 26 23 (c) Purchases of goods 8,740 7,344 (d) Purchases of services 409 163 (5)Commissioned loans The Company and its subsidiaries commissioned CP Finance and other financial institutions to provide loans to each other, charging interest in accordance with the prevailing interest rates. Loans between the Company and its subsidiaries have been eliminated in the consolidated financial statements. As of June 30, 2013, the eliminated commissioned loans totalled RMB 92,487, including short-term loans of RMB 77,651, loans due within one year ofRMB 1,618 and long-term loans of RMB 13,218. (6)Guarantees CNPC provided guarantees of part of loans for the Group, see Note 22, Note 30 and Note 31. (7)Receivables and payables with related parties(a) Receivables from related parties June 30, 2013 December 31, 2012 CNPC and its subsidiariesAccounts receivable 21,955 16,301Other receivables 3,206 1,772Advances to suppliers 34,286 17,149 Associates and jointly controlled entitiesAccounts receivable 658 586Other receivables 141 6Advances to suppliers 66 12Other non-current assets 7,593 8,411

110 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITEDUNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) As of June 30, 2013, the provisions for bad debts of the receivables from related parties amounted RMB 19(December 31, 2012: RMB 21). As of June 30, 2013, the receivables from related parties represented 39% (December 31, 2012: 36%) of total receivables. (b) Payables to related parties June 30, 2013 December 31, 2012 CNPC and its subsidiariesAccounts payable 86,377 78,161Other payables 2,434 1,668Advances from customers 1,872 1,159Notes payable - 45Other non-current liabilities 3,000 2,000 Associates and jointly controlled entitiesAccounts payable 1,817 1,740Other payables 761 99Advances from customers 132 63 As of June 30, 2013, the payables to related parties represented 26% (December 31, 2012: 25%) of total payables. (8)Key management personnel compensation For the six months For the six months ended June 30, 2013 ended June 30, 2012 RMB’000 RMB’000 Key management personnel compensation 5,755 5,953 53 CONTINGENT LIABILITIES(1)Bank and other guaranteesAt June 30, 2013 and December 31, 2012, the Group did not guarantee any borrowings or others of related parties or third parties.

FINANCIAL STATEMENTS 111 PETROCHINA COMPANY LIMITED UNAUDITED NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (2)Environmental liabilities China has adopted extensive environmental laws and regulations that affect the operation of the oil and gas industry. Under existing legislation, however, management believes that there are no probable liabilities, except for the amounts which have already been reflected in the consolidated financial statements, which may have a material adverse effect on the financial position of the Group.(3)Legal contingenciesNotwithstanding certain insignificant lawsuits as well as other proceedings outstanding, management believes that any resulting liabilities will not have a material adverse effect on the financial position of the Group. (4)Group insurance The Group has insurance coverage for vehicles and certain assets that are subject to significant operating risks, third-party liability insurance against claims relating to personal injury, property and environmental damages that result from accidents and also employer liabilities insurance. The potential effect on the financial position of the Group of any liabilities resulting from future uninsured incidents cannot be estimated by the Group at present. 54 COMMITMENTS (1)Operating lease commitments Operating lease commitments of the Group are mainly for leasing of land, buildings and equipment. Leases range from one to fifty years and usually do not contain renewal options. Future minimum lease payments as of June 30, 2013 and December 31, 2012 under non-cancellable operating leases are as follows: June 30, 2013 December 31, 2012 Within one year 5,857 6,148 Between one and two years 4,997 4,767 Between two and three years 4,949 4,885 Thereafter 85,458 86,537 101,261 102,337 Operating lease expenses for six months ended June 30, 2013 was RMB 4,898 (For six months ended June 30,2012: RMB 4,389).

112 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITEDUNAUDITED NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) (2)Capital commitments As of June 30, 2013, the Group’s capital commitments contracted but not provided for were RMB 39,813(December 31, 2012: RMB 47,196). (3)Exploration and production licensesThe Company is obligated to make annual payments with respect to its exploration and production licenses to the Ministry of Land and Resources. No payments were incurred for six months ended June 30, 2013 (for six months ended June 30, 2012: nil). Estimated annual payments for the next five years are as follows: June 30, 2013 2013 1,000 2014 1,000 2015 1,000 2016 1,000 2017 1,000

FINANCIAL STATEMENTS 113 PETROCHINA COMPANY LIMITED SUPPLEMENTARY INFORMATION (UNAUDITED)FOR THE SIX MONTHS ENDED JUNE 30, 2013 (All amounts in RMB millions unless otherwise stated) FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION 1 NON-RECURRING PROFIT/LOSS ITEMS For the six months For the six months ended June 30, 2013 ended June 30, 2012 Net loss on disposal of non-current assets (441) (1,107) Government grants recognised in the income statement 641 607 Net gain on disposal of available-for-sale financial assets 3 -Reversal of provisions for bad debts against receivables 28 21 Gain on investment of certain pipeline net assets and operations 24,822 -Other non-operating income and expenses (2,132) (1,438) 22,921 (1,917) Tax impact of non-recurring profit/loss items (6,977) 418 Impact of minority interests 74 22 Total 16,018 (1,477) 2 SIGNIFICANT DIFFERENCES BETWEEN IFRS AND CAS The consolidated net profit for the period under IFRS and CAS were the same; the consolidated shareholders’ equity at end of period under IFRS and CAS were RMB 1,233,512 and RMB 1,233,530 respectively, with a difference of RMB 18. These differences under the different accounting standards were primarily due to the revaluation of assets other than fixed assets and oil and gas properties revalued in 1999. During the Restructuring in 1999, a valuation was carried out in 1999 for assets and liabilities injected by CNPC. Valuation results other than fixed assets and oil and gas properties were not recognised in the financial statements prepared under IFRS.

114 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2013 and June 30, 2012 (Amounts in millions) Notes Six months ended June 30 2013 2012 RMB RMB TURNOVER 4 1,101,096 1,046,661 OPERATING EXPENSES Purchases, services and other (722,920) (658,111) Employee compensation costs (55,659) (49,612) Exploration expenses, including exploratory dry holes (13,465) (13,905) Depreciation, depletion and amortisation (75,893) (74,046) Selling, general and administrative expenses (36,545) (33,645) Taxes other than income taxes 5 (124,364) (128,686) Other income, net 27,610 1,963 TOTAL OPERATING EXPENSES (1,001,236) (956,042) PROFIT FROM OPERATIONS 99,860 90,619 FINANCE COSTS Exchange gain 2,034 1,373 Exchange loss (2,474) (1,566) Interest income 717 992 Interest expense (10,735) (8,565) TOTAL NET FINANCE COSTS (10,458) (7,766) SHARE OF PROFIT OF ASSOCIATESAND JOINT VENTURES 4,359 4,739 PROFIT BEFORE INCOME TAX EXPENSE 6 93,761 87,592 INCOME TAX EXPENSE 7 (21,204) (17,763) PROFIT FOR THE PERIOD 72,557 69,829 OTHER COMPREHENSIVE INCOME RECLASSIFIABLE TO PROFIT OR LOSS: Currency translation differences (7,114) 1,098 Fair Sharevalueof thelossotherfromcomprehensiveavailable-for-sale(loss)financial/incomeassets,of associatesnet of taxand (23) (5) joint ventures accounted for using the equity method (162) 131 OTHER COMPREHENSIVE (LOSS) /INCOME, NET OF TAX (7,299) 1,224 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 65,258 71,053 PROFIT FOR THE PERIOD ATTRIBUTABLE TO: Owners of the Company 65,522 62,026 Non-controlling interests 7,035 7,803 72,557 69,829 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: Owners of the Company 58,845 62,857 Non-controlling interests 6,413 8,196 65,258 71,053 BASIC AND DILUTED EARNINGS PER SHARE FOR PROFIT 0.36 0.34 ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMB) 8 The accompanying notes are an integral part of these interim financial statements.

FINANCIAL STATEMENTS PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION As of June 30, 2013 and December 31, 2012 (Amounts in millions) Notes June 30, 2013 December 31, 2012 RMB RMB NON-CURRENT ASSETS Property, plant and equipment 10 1,531,825 1,569,888 Investments in associates and joint ventures 115,106 80,042 Available-for-sale financial assets 1,634 1,800 Advance operating lease payments 57,192 56,162 Intangible and other non-current assets 40,118 41,521 Deferred tax assets 1,452 1,443 Time deposits with maturities over one year 5,252 3,708 TOTAL NON-CURRENT ASSETS 1,752,579 1,754,564 CURRENT ASSETS Inventories 11 211,999 214,117 Accounts receivable 12 89,718 64,450 Prepaid expenses and other current assets 120,089 79,539 Time Notesdepositsreceivablewith maturities over three 14,299 9,981 months but within one year 2,698 2,850 Cash and cash equivalents 150,092 43,395 TOTAL CURRENT ASSETS 588,895 414,332 CURRENT LIABILITIES Accounts payable and accrued liabilities 13 388,636 351,456 Income taxes payable 4,013 12,708 Other taxes payable 42,538 59,337 Short-term borrowings 14 184,197 151,247 TOTAL CURRENT LIABILITIES 619,384 574,748 NET CURRENT LIABILITIES (30,489) (160,416) TOTAL ASSETS LESS CURRENT LIABILITIES 1,722,090 1,594,148 EQUITY EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY: Share capital 183,021 183,021 Retained earnings 645,365 603,808 Reserves 272,742 277,181 TOTAL EQUITY ATTRIBUTABLE TO OWNERSOF THE COMPANY 1,101,128 1,064,010 NON-CONTROLLING INTERESTS 132,384 116,738 TOTAL EQUITY 1,233,512 1,180,748 NON-CURRENT LIABILITIES Long-term borrowings 14 366,398 293,774 Asset retirement obligations 87,297 83,928 Deferred tax liabilities 20,736 22,286 Other long-term obligations 14,147 13,412 TOTAL NON-CURRENT LIABILITIES 488,578 413,400 TOTAL EQUITY AND NON-CURRENT 1,722,090 1,594,148 LIABILITIES The accompanying notes are an integral part of these interim financial statements.

116 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED INTERIM CONDENSED STATEMENT OF CASH FLOWS For the six months ended June 30, 2013 and June 30, 2012 (Amounts in millions) Six months ended June 30 2013 2012 RMB RMB CASH FLOWS FROM OPERATING ACTIVITIESProfit for the period 72,557 69,829 Adjustments for: Income tax expense 21,204 17,763 Depreciation, depletion and amortisation 75,893 74,046 Capitalised exploratory costs charged to expense 6,600 7,810 Safety fund reserve 2,827 3,434 Share of profit of associates and joint ventures (4,359) (4,739) Reversal of provision for impairment of receivables, net (27) (20) Write down in inventories, net 220 494 Loss on disposal of property, plant and equipment 465 1,095 (Gain) /loss on disposal of other non-current assets (28) 12 Dividend income (341) (323) Interest income (717) (992) Interest expense 10,735 8,565 Changes in working capital: Accounts receivable, prepaid expenses and other current assets (51,581) (23,851) Inventories 1,262 (32,894) Accounts payable and accrued liabilities 9,698 (34,278) CASH FLOWS GENERATED FROM OPERATIONS 144,408 85,951 Income taxes paid (42,351) (37,945) NET CASH FLOWS FROM OPERATING ACTIVITIES 102,057 48,006 The accompanying notes are an integral part of these interim financial statements.

FINANCIAL STATEMENTS PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED INTERIM CONDENSED STATEMENT OF CASH FLOWS (CONTINUED) For the six months ended June 30, 2013 and June 30, 2012 (Amounts in millions) Six months ended June 30 2013 2012 RMB RMB CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (134,069) (127,223) Acquisition of investments in associates and joint ventures (1,168) (5,438) Acquisition of available-for-sale financial assets - (15) Advance payments on long-term operating leases (2,858) (3,032) Acquisition of intangible assets and other non-current assets (1,753) (1,559) Purchase of non-controlling interests (35) (99) Acquisition of subsidiaries - (23) Proceeds from disposal of property, plant and equipment 38,511 238 Proceeds from disposal of other non-current assets 349 33 Interest received 1,208 992 Dividends received 2,486 4,627 Increase in time deposits with maturities over three months (1,474) (16,312) NET CASH FLOWS USED FOR INVESTING ACTIVITIES (98,803) (147,811) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings (218,868) (129,751) Repayments of long-term borrowings (8,167) (45,520) Interest paid (10,667) (10,805) Dividends paid to non-controlling interests (4,204) (3,617) Increase in short-term borrowings 210,313 189,383 Increase in long-term borrowings 124,217 102,465 Capital contribution from non-controlling interests 12,716 9,125 (Decrease) / increase in other long-term obligations (531) 28 NET CASH FLOWS FROM FINANCING ACTIVITIES 104,809 111,308 TRANSLATION OF FOREIGN CURRENCY (1,366) 676 Increase in cash and cash equivalents 106,697 12,179 Cash and cash equivalents at beginning of the period 43,395 61,172 Cash and cash equivalents at end of the period 150,092 73,351 The accompanying notes are an integral part of these interim financial statements.

PETROCHINA COMPANY LIMITED UNAUDITED CONSOLIDATED INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY For the six months ended June 30, 2013 and June 30, 2012 (Amounts in millions) Non- controlling Total Attributable to owners of the Company Interests Equity Share Retained Capital Earnings Reserves Subtotal RMB RMB RMB RMB RMB RMB Balance at January 1, 2012 183,021 556,717 263,007 1,002,745 79,801 1,082,546 Total comprehensive income for the six months ended June 30, 2012 - 62,026 831 62,857 8,196 71,053 Special reserve-safety fund reserve - 45 3,104 3,149 16 3,165 Dividends - (30,129) - (30,129) (4,594) (34,723) Acquisition of subsidiaries - - - - 132 132 Purchase of non-controlling interests in subsidiaries - - (26) (26) (73) (99) Capital contribution from non-controlling interests - - 2,276 2,276 6,849 9,125 Other - (2) (37) (39) (18) (57) Balance at June 30, 2012 183,021 588,657 269,155 1,040,833 90,309 1,131,142 Balance at January 1, 2013 183,021 603,808 277,181 1,064,010 116,738 1,180,748 Total comprehensive income for the six months ended June 30, 2013 - 65,522 (6,677) 58,845 6,413 65,258 Special reserve-safety fund reserve - - 2,296 2,296 22 2,318 Dividends - (23,985) - (23,985) (3,930) (27,915) Acquisition of subsidiaries - - - - 121 121 Purchase of non-controlling interests in subsidiaries - - - - (35) (35) Capital contribution from non-controlling interests - - (6) (6) 12,722 12,716 Disposal of subsidiaries - - 1 1 (87) (86) Other - 20 (53) (33) 420 387 Balance at June 30, 2013 183,021 645,365 272,742 1,101,128 132,384 1,233,512 The accompanying notes are an integral part of these

FINANCIAL STATEMENTS 119 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 1 ORGANISATION AND PRINCIPAL ACTIVITIES PetroChina Company Limited (the “Company”) was established as a joint stock company with limited liability on November 5, 1999 by China National Petroleum Corporation (“CNPC”) as the sole proprietor in accordance with the approval Guo Jing Mao Qi Gai [1999] No. 1024 “Reply on the approval of the establishment of PetroChina Company Limited” from the former State Economic and Trade Commission of the People’s Republic of China (“China” or “PRC”). CNPC restructured (“the Restructuring”) and injected its core business and the related assets and liabilities into the Company. CNPC is a wholly state-owned company registered in China. The Company and its subsidiaries are collectively referred to as the “Group”. The Group is principally engaged in (i) the exploration, development and production and marketing of crude oil and natural gas; (ii) the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, derivative petrochemical products and other chemical products; (iii) the marketing of refined products and trading business; and (iv) the the sale of natural gas (Note 15). 2 BASIS OF PREPARATION AND ACCOUNTING POLICIES The unaudited consolidated interim condensed financial statements prepared in accordance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting” (“IAS 34”). Except as described below, the accounting policies and methods of computation applied in the preparation of the interim financial statements are consistent with December 31, 2012, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The following changes in accounting policies are also expected to be reflected in the Group’s ended December 31, 2013. The Group has adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of January 1, 2013. · IFRS 10 Consolidated financial statements (2011) · IFRS 11 Joint arrangements · IFRS 12 Disclosure of interests in other entities · IFRS 13 Fair value measurement · “Presentation of financial statement” regarding other comprehensive income (Amendment to IAS 1) The Group has evaluated the impact of the new standards and amendments to standards on the interim financial statements, and no significant impact is

120 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) The interim financial statements as of June 30, 2013 30, 2012 included herein are unaudited but reflect, in generally includes only normal recurring adjustments) in all material respects, in accordance with IAS 34. The results of operations for the six months ended June 30, 2013 are not necessarily indicative of the results of operations expected for the year ended December 31, 2013. Costs that are incurred unevenly during the financial year are accrued or deferred in the interim financial statements only if it would be also appropriate to 3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The matters described below are considered to be the most critical in understanding the estimates and judgements that are involved in preparing the Group’s (a) Estimation of oil and natural gas reserves Estimates of oil and natural gas reserves are key elements in the Group’s investment decision-making process. They are also an important element in testing for impairment. Changes in proved oil and natural gas reserves, particularly proved developed reserves, will affect unit-of-production depreciation, depletion and amortisation recorded in the Group’s consolidated statement of comprehensive income for property, plant and equipment related to oil and gas production activities. A reduction in proved developed reserves will increase depreciation, depletion and amortisation charges. Proved reserve estimates are subject to revision, either upward or downward, based on new information, such as from development drilling and production activities or from changes in economic factors, including product prices, contract terms, evolution of technology or development plans, etc. (b) Estimation of impairment of property, plant and equipment Property, plant and equipment, including oil and gas properties, are reviewed for possible impairments when events or changes in circumstances indicate that the carrying amount may not be recoverable. Determination as to whether and how much an asset is impaired involves management estimates and judgements such as the future price of crude oil, refined and chemical products and calculations are based on assumptions that are consistent with the Group’s business plans taking into account current economic conditions. Favourable changes to some assumptions, or not updating assumptions previously made, may allow the Group to avoid the need to impair any assets, whereas unfavourable changes may cause the

FINANCIAL STATEMENTS 121 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) (c) Estimation of asset retirement obligations Provision is recognised for the future decommissioning and restoration of oil and gas properties. The amount of the provision recognised is the present values of the estimated future expenditures. The estimation of the future expenditures is based on current local conditions and requirements, including legal requirements, technology, price levels, etc. In addition to these factors, the present values of these estimated future expenditures are also impacted by the estimation of the economic lives of oil and gas properties and estimates of discount rates. Changes in any of these estimates will impact the operating results and lives of the oil and gas properties. 4 TURNOVER Turnover represents revenues from the sale of crude oil, natural gas, refined products and petrochemical products and from the transmission of crude oil, refined is shown in Note 15. 5 TAXES OTHER THAN INCOME TAXES Six months ended June 30 2013 2012 RMB RMB Crude oil special gain levy 37,073 42,612 Consumption tax 49,976 49,223 Resource tax 14,191 14,144 Other 23,124 22,707 124,364 128,686

122 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 6 PROFIT BEFORE INCOME TAX EXPENSE Six months ended June 30 2013 2012 RMB RMB Items credited and charged in arriving at the profit before expense include: Credited Dividend income from available-for-sale financial 341 assets 323 Reversal of provision for impairment of receivables 28 21 Reversal of write down in inventories 22 35 Gain on investment of certain pipeline net assets and operations (Note(i)) 24,822 - Charged Amortisation of intangible and other assets 1,753 1,496 Cost of inventories recognised as expense 824,297 753,250 Provision for impairment of receivables 1 1 Interest expense (Note (ii)) 10,735 8,565 Loss on disposal of property, plant and equipment 465 1,095 Operating lease expenses 5,618 4,944 Research and development expenses 7,843 5,848 Write down in inventories 242 529 Note (ii): Interest expense Interest expense 12,684 10,926 Less: Amount capitalised (1,949) (2,361) 10,735 8,565 Note (i): In June 2013, the Company entered into a contract with two other parties to establish a joint venture named PetroChina United Pipelines Co., Ltd. (the “JV Company”). The Company contributed certain pipeline net assets and operations to the JV Company and holds 50% equity interest in the JV Company. The other parties contributed cash and together hold the remaining 50% equity interest in the JV Company. The gain represents the gain realised on the contribution of the abovementioned pipeline net assets and operations into the JV Company.

FINANCIAL STATEMENTS 123 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 7 INCOME TAX EXPENSE Six months ended June 30 2013 2012 RMB RMB Current taxes 22,559 20,444 Deferred taxes (1,355) (2,681) 21,204 17,763 In accordance with the relevant PRC income tax rules and regulations, the PRC corporate income tax rate applicable to the Group is principally 25%. Operations tax incentives in the form of a preferential income tax rate of 15% through the year 2020. 8 BASIC AND DILUTED EARNINGS PER SHARE Basic and diluted earnings per share for the six months ended June 30, 2013 and June 30, 2012 have been computed by dividing profit attributable to owners of the Company by the 183,021 million shares issued and outstanding during the period. There are no potentially dilutive ordinary shares. 9 DIVIDENDS Six months ended June 30 2013 2012 RMB RMB Interim dividends attributable to owners of the Company for 2013 (note a) 29,485 - Interim dividends attributable to owners of the Company for 2012 (note c) - 27,912 (a) As authorised by shareholders in the Annual General Meeting on May 23, 2013, the Board of Directors resolved to distribute interim dividends attributable to owners of the Company in respect of 2013 of RMB 0.16110 yuan per share amounting to a total of RMB 29,485. This dividend is not recognised as liability at the end of the reporting period, as it was declared after the date of the statement of financial (b) Final dividends attributable to owners of the Company in respect of 2012 of RMB 0.13106 yuan per share amounting to a total of RMB 23,985 were approved by the shareholders in the Annual General Meeting on May 23, 2013 and were paid on July 18, 2013. (c) Interim dividends attributable to owners of the Company in respect of 2012 of RMB 0.15250 yuan per share amounting to a total of RMB 27,912 were paid on October 24, 2012. (d) Final dividends attributable to owners of the Company in respect of 2011 of RMB 0.16462 yuan per share amounting to a total of RMB 30,129 were approved by the shareholders in the Annual General Meeting on May 23, 2012 and were paid on July 12, 2012.

124 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 10 PROPERTY, PLANT AND EQUIPMENT RMB Cost At January 1, 2013 2,565,001 Additions 99,112 Disposals or write offs (86,184) Currency translation differences (5,496) At June 30, 2013 2,572,433 Accumulated depreciation and impairment At January 1, 2013 (995,113) Charge for the period (72,951) Disposals or write offs 26,310 Currency translation differences 1,146 At June 30, 2013 (1,040,608) Net book value At June 30, 2013 1,531,825 RMB Cost At January 1, 2012 2,234,859 Additions 113,770 Disposals or write offs (13,833) Currency translation differences 206 At June 30, 2012 2,335,002 Accumulated depreciation and impairment At January 1, 2012 (862,852) Charge for the period (71,381) Disposals or write offs 4,222 Currency translation differences (63) At June 30, 2012 (930,074) Net book value At June 30, 2012 1,404,928

FINANCIAL STATEMENTS 125 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 11 INVENTORIES June 30, 2013 December 31, 2012 RMB RMB Crude oil and other raw materials 77,531 77,452 Work in progress 15,266 16,280 Finished goods 119,914 120,987 Spare parts and consumables 45 43 212,756 214,762 Less: Write down in inventories (757) (645) 211,999 214,117 12 ACCOUNTS RECEIVABLE June 30, 2013 December 31, 2012 RMB RMB Accounts receivable 90,277 65,035 Less: Provision for impairment of accounts receivable (559) (585) 89,718 64,450 The aging analysis of accounts receivable (net of impairment of accounts receivable) as of June 30, 2013 and December 31, 2012 is as follows: June 30, 2013 December 31, 2012 RMB RMB Within 1 year 88,506 64,031 Between 1 and 2 years 911 306 Between 2 and 3 years 230 29 Over 3 years 71 84 89,718 64,450 The Group offers its customers credit terms up to 180 days.

126 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) Movements in the provision for impairment of accounts receivable are as follows: Six months ended June 30 2013 2012 RMB RMB At beginning of the period 585 850 Provision for impairment of accounts receivable - 1 Receivables written off as uncollectible (1) - Reversal of provision for impairment of accounts receivable (25) (18) Other - 1 At end of the period 559 834 13 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, 2013 December 31, 2012 RMB RMB Trade payables 136,934 131,928 Advances from customers 42,504 38,131 Salaries and welfare payable 9,447 4,161 Accrued expenses 23,994 141 Dividends payable 25,999 2,288 Interest payable 1,558 1,999 Construction fee and equipment cost payables 124,519 146,499 Other 23,681 26,309 388,636 351,456 Other consists primarily of customer deposits. The aging analysis of trade payables as of June 30, 2013 and December 31, 2012 is as follows: June 30, 2013 December 31, 2012 RMB RMB Within 1 year 131,791 126,933 Between 1 and 2 years 2,272 3,279 Between 2 and 3 years 1,955 818 Over 3 years 916 898 136,934 131,928

FINANCIAL STATEMENTS 127 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 14 BORROWINGS June 30, 2013 December 31, 2012 RMB RMB Short-term borrowings excluding current portion of long-term borrowings 133,518 143,409 Current portion of long-term borrowings 50,679 7,838 184,197 151,247 Long-term borrowings 366,398 293,774 550,595 445,021 The movements in borrowings are analysed as follows: RMB Balance at January 1, 2013 445,021 Increase in borrowings 334,530 Repayments of borrowings (227,035) Currency translation differences (1,921) Balance at June 30, 2013 550,595 The following table sets out the borrowings’ remaining contractual maturities at the date of the statement of financial position, which are based on contractual earliest contractual maturity date: June 30, 2013 December 31, 2012 RMB RMB Within 1 year 203,723 166,089 Between 1 and 2 years 93,111 92,311 Between 2 and 5 years 190,444 162,992 After 5 years 145,947 83,806 633,225 505,198

128 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 15 SEGMENT INFORMATION The Group is principally engaged in a broad range of petroleum related products, services and activities. The Group’s operating segments comprise: Exploration and Gas and Pipeline. On the basis of these operating segments, the management of the Company assesses the segmental operating results and allocates resources. Sales between operating segments are conducted principally at market prices. Additionally, the Group presents geographical information based on entities located in regions with a similar risk profile. The Exploration and Production segment is engaged in the exploration, development, production and marketing of crude oil and natural gas. The Refining and Chemicals segment is engaged in the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, derivative petrochemical products and other chemical products. The Marketing segment is engaged in the marketing of The Natural Gas and Pipeline segment is engaged in the products and the sale of natural gas. The Head Office and Other segment relates to cash research and development, and other business services supporting the operating business segments of the Group. The accounting policies of the operating segments are the same as those described in Note 2 - “Basis of Preparation and Accounting Policies”.

FINANCIAL STATEMENTS 129 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) The segment information for the operating segments for the six months ended June 30, 2013 and 2012 are as follows: Exploration Refining Natural Head Six months ended and and Gas and Office and June 30, 2013 Production Chemicals Marketing Pipeline Other Total RMB RMB RMB RMB RMB RMB Turnover 385,456 436,437 943,248 105,583 664 1,871,388 Less: intersegment sales (306,684) (338,619) (119,068) (5,845) (76) (770,292) Turnover from external customers 78,772 97,818 824,180 99,738 588 1,101,096 Depreciation, depletion and amortisation (54,294) (9,298) (5,319) (6,262) (720) (75,893) Profit/ (loss) from operations98,807 (15,861) 3,428 21,882 (8,396) 99,860 Finance costs: Exchange gain 2,034 Exchange loss (2,474) Interest income 717 Interest expense (10,735) Total net finance costs (10,458) Share of profit of associates and joint ventures 2,661 (1) 477 264 958 4,359 Profit before income tax expense 93,761 Income tax expense (21,204) Profit for the period 72,557 Segment assets 1,083,253 350,418 394,350 421,414 1,568,842 3,818,277 Other assets 12,549 Investments in associates and joint ventures 49,011 1,029 10,631 38,288 16,147 115,106 Elimination of intersegment balances (a) (1,604,458) Total assets 2,341,474 Segment capital expenditure 76,446 4,440 1,625 25,160 536 108,207 Segment liabilities 417,187 140,294 215,577 169,258 745,354 1,687,670 Other liabilities 67,287 Elimination of intersegment balances (a) (646,995) Total liabilities 1,107,962

130 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) Exploration Refining Natural Head Six months ended and and Gas and Office and June 30, 2012 Production Chemicals Marketing Pipeline Other Total RMB RMB RMB RMB RMB RMB Turnover 392,460 433,149 900,111 98,062 674 1,824,456 Less: intersegment sales (312,390) (343,150) (111,691) (10,494) (70) (777,795) Turnover from external customers 80,070 89,999 788,420 87,568 604 1,046,661 Depreciation, depletion and amortisation (50,623) (8,849) (4,969) (8,990) (615) (74,046) Profit/ (loss) from operations113,792 (28,875) 10,001 1,637 (5,936) 90,619 Finance costs: Exchange gain 1,373 Exchange loss (1,566) Interest income 992 Interest expense (8,565) Total net finance costs (7,766) Share of profit of associates and joint ventures 3,146 4 431 86 1,072 4,739 Profit before income tax expense 87,592 Income tax expense (17,763) Profit for the period 69,829 Segment assets 983,434 349,459 360,847 379,516 1,472,587 3,545,843 Other assets 1,783 Investments in associates and joint ventures 47,962 819 10,993 2,859 14,143 76,776 Elimination of intersegment balances (a) (1,572,908) Total assets 2,051,494 Segment capital expenditure 69,006 9,279 2,495 30,768 130 111,678 Segment liabilities 355,802 144,454 224,540 167,632 642,586 1,535,014 Other liabilities 74,848 Elimination of intersegment balances (a) (689,510) Total liabilities 920,352

FINANCIAL STATEMENTS 131 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) Geographical information Turnover Non-current assets (b) Six months ended June 30, 2013 2012 2013 2012 RMB RMB RMB RMB Mainland China 733,032 713,942 1,551,980 1,399,770 Other 368,064 332,719 197,513 167,694 1,101,096 1,046,661 1,749,493 1,567,464 (a) Elimination of intersegment balances represents elimination of intersegment accounts and investments. (b) Non-current assets mainly include non-current assets 16 CONTINGENT LIABILITIES (a) Bank and other guarantees At June 30, 2013 and December 31, 2012, the Group did not guarantee related parties or third parties any borrowings or others. (b) Environmental liabilities China has adopted extensive environmental laws and regulations that affect the operation of the oil and gas industry. Under existing legislation, however, management believes that there are no probable liabilities, except for the amounts which have already been reflected in adverse effect on the financial position of the Group. (c) Legal contingencies Notwithstanding certain insignificant lawsuits as that any resulting liabilities will not have a material (d) Group insurance The Group has insurance coverage for vehicles and risks, third-party liability insurance against claims relating to personal injury, property and environmental damages that result from accidents and also employer liabilities Group of any liabilities resulting from future uninsured incidents cannot be estimated by the Group at present.

132 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 17 COMMITMENTS (a) Operating lease commitments Operating lease commitments of the Group are mainly for leasing of land, buildings and equipment. Leases range from one to fifty years and usually do not contain 30, 2013 and December 31, 2012 under non-cancellable operating leases are as follows: June 30, 2013 December 31, 2012 RMB RMB No later than 1 year 5,857 6,148 Later than 1 year and no later than 5 years 19,579 19,096 Later than 5 years 75,825 77,093 101,261 102,337 (b) Capital commitments At June 30, 2013, the Group’s capital commitments contracted but not provided for mainly relating to property, plant and equipment were RMB 39,813 (December 31, 2012: RMB 47,196). (c) Exploration and production licenses The Company is obligated to make annual payments with respect to its exploration and production licenses to the Ministry of Land and Resources. No payments were incurred for the six months ended June 30, 2013 (six months ended June 30, 2012: RMB nil). Estimated annual payments for the next five years June 30, 2013 RMB 2013 1,000 2014 1,000 2015 1,000 2016 1,000 2017 1,000

FINANCIAL STATEMENTS 133 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) 18 RELATED PARTY TRANSACTIONS CNPC, the controlling shareholder of the Company, is a state-controlled enterprise directly controlled by the PRC government. The PRC government is the Company’s ultimate controlling party. Related parties include CNPC and its fellow subsidiaries, their associates and joint ventures, other state-owned enterprises and their subsidiaries which the PRC over and enterprises which the Group is able to management personnel of the Company and CNPC and their close family members. (a) Transactions with CNPC and its fellow subsidiaries, associates and joint ventures of the Group The Group has extensive transactions with other companies in CNPC and its fellow subsidiaries. Due to these relationships, it is possible that the terms of the transactions between the Group and other members of CNPC and its fellow subsidiaries are not the same as those that would result from transactions with other related parties or wholly unrelated parties. The principal related party transactions with CNPC and its fellow subsidiaries, associates and joint ventures of the Group which were carried out in the ordinary course of business, are as follows: On August 25, 2011, based on the terms of the Comprehensive Product and Services Agreement amended in 2008, the Company and CNPC entered into a new Comprehensive Products and Services Agreement (“the Comprehensive Products and Services Agreement”) for a period of three years which took effect on January 1, 2012. The Comprehensive Products and Services Agreement provides for a range of products and services which may be required and requested by either party. The products and services to be provided by CNPC and its fellow subsidiaries to the Group under the Comprehensive Products and Services Agreement include construction and technical services, production services, supply of services. The products and services required and requested by either party are provided in accordance with (1) government-prescribed prices; or (2) where there is no government-prescribed price, with reference to relevant market prices; or (3) where neither (1) nor (2) is applicable, the actual cost incurred or the agreed contractual price. ·Sales of goods represent the sale of crude oil, The total amount of these transactions amounted to RMB 57,994 for the six months ended June 30, 2013 (six months ended June 30, 2012: RMB 36,986). · Sales of services principally represent the provision of services in connection with the transportation of crude oil and natural gas, etc. The total amount of these transactions amounted to RMB 4,737 for the six months ended June 30, 2013 (six months ended June 30, 2012:RMB 4,631).

134 FINANCIAL STATEMENTS 2013 INTERIM REPORT PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) · Purchases of goods and services principally represent construction and technical services, production services, social services, ancillary services and material supply services, etc. The total amount of these transactions amounted to RMB 147,473 for the six months ended June 30, 2013 (six months ended June 30, 2012: RMB 125,834). · Purchases of assets principally represent the purchases of manufacturing equipment, office equipment and transportation equipment, etc. The total amount of these transactions amounted to RMB 159 for the six months ended June 30, 2013 (six months ended June 30, 2012: RMB 123). · Amounts due from and to CNPC and its fellow subsidiaries, associates and joint ventures of the Group included in the following accounts captions are summarised as follows: June 30,2013 December 31, 2012 RMB RMB Accounts receivable 22,594 16,868 Prepayments and other receivables 37,699 18,937 Other non-current assets 7,593 8,411 Accounts payable and accrued liabilities 93,393 82,988 Other non-current liabilities 3,000 2,000 · Interest income represents interests from deposits placed with CNPC and its fellow subsidiaries. The total interest income amounted to RMB 331 for the six months ended June 30, 2013 (six months ended June 30, 2012: RMB 214). The balance of deposits at June 30, 2013 was RMB 52,489 (December 31, 2012: RMB 4,394). ·Purchases of financial services principally represents subsidiaries, insurance fees, etc. The total amount of these transactions amounted to RMB 8,593 for the six months ended June 30, 2013 (six months ended June 30, 2012: RMB 6,215). · The borrowings from CNPC and its fellow subsidiaries at 30 June 2013 were RMB 342,049 (December 31, 2012: RMB 273,086). · Rents and other payments made under financial leasing represent the payable by the Group (including all rents, leasing service fees and prices for exercising purchase options) for the period according to the financial leasing agreements entered and other payments made under financial leasing amounted 2013 (six months ended June 30, 2012: RMB nil).

FINANCIAL STATEMENTS 135 PETROCHINA COMPANY LIMITED NOTES TO THE UNAUDITED CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS For the six months ended June 30, 2013 (Amounts in millions unless otherwise stated) On August 25, 2011, based on the Land Use Rights Leasing Contract signed in 2000, the Company and CNPC entered into a Supplemental Land Use Rights Leasing Contract which took effect on January 1, 2012. The Supplemental Land Use Rights Leasing Contract provides for the lease of land covering an aggregate area of approximately 1,783 million square meters located throughout the PRC at a maximum annual fee of RMB 3,892. The Supplemental Land Use Rights Leasing Contract will expire at the same time as the Land Use Rights Leasing Contract. The area and total fee payable for the lease of all such property may be adjusted with the Company’s operating needs and by reference to market price every three years. On August 25, 2011, based on the Buildings Leasing Contract and Supplemental Building Leasing Agreement, the Company and CNPC entered into a Revised Buildings Leasing Contract which took effective thereafter. Under this contract, buildings covering an aggregate area of 734,316 square meters were leased at an average annual fee of RMB 1,049 yuan per square meter. The Revised Building Leasing Contract will expire at the same time as the Building Leasing Agreement. The area and total fee payable for the lease of all such property may, every three years, be adjusted with the Company’s operating needs and by reference to market price which the adjusted prices will not exceed. (b) Key management compensation Six months ended June 30 2013 2012 RMB’000 RMB’000 Emoluments and other benefits 5,363 5,578 Contribution to retirement benefit scheme 392 375 5,755 5,953 (c) Transactions with other state-controlled entities in the PRC Apart from transactions with CNPC and its fellow subsidiaries, associates and joint ventures of the Group, the Group has transactions with other state-controlled entities include but not limited to the following: · Sales and purchases of goods and services, · Purchases of assets, · Lease of assets, and · Bank deposits and borrowings These transactions are conducted in the ordinary course of the Group’s business.

DOCUMENTS AVAILABLE FOR INSPECTION The following documents will be available for inspection at the headquarters of the Company in Beijing upon request by the relevant regulatory authorities and shareholders in accordance with the Articles of Association and the laws and regulations: 1. The financial statements under the hand and seal of the Chairman Mr Zhou Jiping, Director and President Mr Wang Dongjin and Chief Financial Officer Mr Yu Yibo of the Company.2. The original copies of the documents and announcements of the Company published in the newspaper designated by the China Securities Regulatory Commission during the reporting period.3. The Articles of Association of the Company.

CONFIRMATION FROM THE DIRECTORS AND SENIOR MANAGEMENT According to the relevant provisions and requirements of the Securities Law of the People’s Republic of China and Measures for Information Disclosure of Companies Offering Shares to the Public promulgated by the China Securities Regulatory Commission, as the Directors and senior management of PetroChina Company Limited, we have carefully reviewed the interim report for 2013 and concluded that this interim report truly, objectively and completely represents the business performance of the Company in the first half of 2013, it contains no false representations, misleading statements or material omissions and complies with laws, regulations and the requirements of the China Securities Regulatory Commission. Signatures of the Directors and senior management: August 22, 2013 This interim report is prepared in English and Chinese. In the event of any inconsistency between the two versions, the Chinese version shall prevail.

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.

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Report of foreign issuer [Rules 13a-16 and 15d-16] - April 24, 2014

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