1

Objective ….

Review the Oil & Gas opportunity and Strategy

Accounts including…– CNPC…BGP, CNPCSE, CPFinance– PetroChina– CNOOC…CNOOC Ltd.

2

Customer OverviewCNPC

One of the world’s leading integrated energy company, rank No.10 in the world oil company

China largest producer and supplier of crude oil and natural gas

Operation covers all upstream and down stream activities in O&G

Current total assets $88.6B

PetroChina

The largest subsidiary of CNPC, IPO company

Exploration, development and production of crude oil and natural gas;

Refining, transportation, storage and marketing, including import and export, of crude oil and petroleum products;

Production and sale of chemical products; and

Transmission, marketing and sales of natural gas.

3

Organization Chart - CNPCCNPC

One of them is PetroChina

Installation BaseBGP, CPFinance – Oracle

CNPCSE - PFST

4

Organization Chart - PetroChina

Four major biz units as P/L centers

5

Earnings

CNPC

2001 2002 2003

Revenue ($M) $41,383 $45,685 $57,263

EBIT ($M) $5,234 $6,452 $8,754

PetroChina

2001 2002 2003

Revenue ($M) $29,074 $29,448 $36,599

EBIT ($M) $8,208 $8,342 $11,846

6

BGP Achievement Review

Generate the best practice in the industry and comply with BGP business process management

Build up a scalable and integrated ERP system

FIN,OFA,OSA,EAM,PJRM,Project Contracts,Balanced Scorecard,Internet Expenses,Payroll,iLearning,Collaboration Suite,

Implementation ResultImplementation ResultImplementation ResultImplementation Result

Implementation ModuleImplementation ModuleImplementation ModuleImplementation Module

Project GoalProject GoalProject GoalProject Goal

Oracle system encloses advance management methodology in strategic design & planning,and consolidate the business process thru best practice

Oracle system ties up business process and enterprise strategy closely

7

CNPC SE Overview – PFST installation Base

Wholly owned subsidiary of CNPC

Supplier of petroleum and petrochemical equipment and contracting service

Packaged service of oilfield exploration and development

Equipment leasing service to O&G industry

O&G consulting service

Engineering service to global petroleum and petrochemical project

8

Earnings

CNPC SE

2001 2002 2003

Revenue($M) $425 $726 $1,359

EBIT ($M) $16 $19 $60

9

CNPC SE Company structure

C o m p a n y S truc tu re

G re a t W a ll D rillin g C o m p a nyG W D C

C h ina N atio n a l L o gg in g C o.C N L C

C h in a P e tro le u m E & C C o.C P E C C

C h in a P e tro leu m T & D C o.C P T D C

C N P C S E

10

CNPC / PetroChina Coverage Map

客户名称 Modules Purchased

PAR

TNER

NA

ME

PUR

CH

ASE

DA

TE

China Petroleum Finance

Co., Ltd. FIN KPMG

2001/ 11/ 30

CNPC BGP FIN,OFA,OSA,EAM,PJ RM,Project

Contracts,Balanced

Scorecard,Internet

Expenses,Payroll,iLearning,Collabor

ation Suite, BearingPoint 2003/ 5/ 29

CNPC SE PeopleSoft Financials, HCM N/ A 2002,2004

PetroChina LangChao - Local vendor

Note:

CNPCSE HQ and its subsidiaries license PFST finance

CNPCSE HQ and CPTDC license PFST HCM

16

CNPC Approach

Must take care of Group

Principle: Create “Diversified and complex scenario with focusing on Install Base

Leverage Install Base:– BGP/CNPC – Upsell additional name users– CNPCSE/CNPC – roll-out HCM : wait for success story

Focused penetration with project success Leverage w/ Mercer to strategy HCM into

– CNPCSE

– Even CNPC

Partner with Langchao & BP

Find other biz. Unit under CNPC Group to sell

17

Petrochina Approach

PetroChina Status– PetroChina Intl./PetroChina – Finance :Proposal

submitted, progress holding– PetroChina HQ/PetroChina – ERP : qualification

PetroChina ERP approach:– Propose partially, need to qualify:

1. Fin + HR, Back office2. CRM – Front Office3. Upstream4. JDE

See any chance of “spin off” project such as:– SHE chance?– ICM??

18

CNPC/PetroChina Account Strategy

Compete with SAP– Avoid the frontal competition with SAP– Avoid one-stop shopping game and roll-out to all– Oracle try to win partial deals with super-start solution or

from installation base– Extend CNPC competency to influence PetroChina deals

Path Forward– Interview BGP and CNPCSE to refine the sales strategy– Ensure BGP or CNPCSE’s success story to explore CNPC

opportunity– Re-align with PetroChina to qualify any opportunity– Re-align with partner to re-position Oracle solution

19

Support Needed

Management strategic mid-term commitment:–Attack SAP “Cash Cow” “Easy Money” –“mission Impossible”s possible target–“Resource Hole”–Battle vs. Fight, Army vs. soldier–Need HC for Energy Industry

Metal Oil & Gas