China Petroleum & Chemical Corporation

1H 2006 Results Announcement

August 28, 2006Hong Kong

2006-8-28 2

Disclaimer

This presentation and the presentation materials distributed herewith include

forward-looking statements. All statements, other than statements of historical facts, that

address activities, events or developments that Sinopec Corp. expects or anticipates will

or may occur in the future (including but not limited to projections, targets, estimates and

business plans) are forward-looking statements. Sinopec Corp.'s actual results or

developments may differ materially from those indicated by these forward-looking

statements as a result of various factors and uncertainties, including but not limited to

price fluctuations, actual demand, exchange rate fluctuations, exploration and

development outcomes, estimates of proven reserves, competition, environmental risks,

changes in legal, financial and regulatory frameworks, international economic and

financial market conditions, political risks, project delay, project approval, cost estimates

and other risks and factors beyond our control. In addition, Sinopec Corp. makes the

forward-looking statements referred to herein as of today and undertakes no obligation to

update these statements.

2006-8-28 3

Agenda

1H 2006 Financial Highlights

Growth Strategy

1H 2006 Operational Results

2H 2006 Business Prospects

1H 2006 Financial Highlights

2006-8-28 5

Profit Growth

RMB million 1H 2006 1H 2005 Change%

Turnover and other operating revenues 493,128 368,454 33.84

EBITDA 50,742 48,837 3.90

EBIT 34,238 33,682 1.65

Profit attributable to:

Equity shareholders of the Company 21,406 19,653 8.92

Minority interests 158 2,116 -92.53

EPS(RMB) 0.247 0.227 8.92

2006-8-28 6

Financial Position

RMB millionAs of 30 June

2006As of 31 Dec. 200

5

Short-term debt 65,199 40,411

Long-term debt 68,279 67,059

Total equity attributable to equity shareholders of the Company

237,159 223,556

RMB million 1H 2006 1H 2005

Net cash flow from operating activities 21,478 21,082

Net cash flow from investing activities -54,327 -31,400

Net cash flow from financing activities 29,050 7,553

Cash & cash equivalents - beginning balance 13,745 16,381

Cash & cash equivalents - ending balance 9,939 13,616

2006-8-28 7

ROCE and Dividend

0.040.040.04

0.090.08

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

2004 2005 1H2006

Interim Dividend Final Dividend

ROCE

5.5%

12.0%12.8%

0%

3%

5%

8%

10%

13%

15%

2004 2005 1H 2006

ROCE for 1H 2006 is not annualized

Dividend Per ShareRMB Yuan

Growth Strategy

2006-8-28 9

Market Environment

Continued high crude prices

Cyclical fluctuation in petrochemical industry

Chinese economy expected to maintain rapid growth Domestic demand for oil products and petrochemicals will

continue to grow

Increasing competition, along with gradual opening up of markets

2006-8-28 10

Improve Governance and Deepen Reforms

Improve governance practices Expand roles of Audit Committee, Strategic Committee,

Remuneration & Examination Committee, and Independent Directors

Enforce internal controls and improve risk management

Deepen management reforms Integrate management of business units and subsidiaries

Empower business units to enhance efficiency

Strengthen centralized decision-making process for significant business activities and allocation of resources

2006-8-28 11

Expand Resources

Stabilize mature fields Develop new fields Explore new areas

Tarim Basin

Chaidamu Basin

Sichuan Basin

Ordos Basin

SongliaoBasin

x10,000 tonnesoil equivalent

0

1000

2000

3000

4000

5000

6000

2005 2006E 2007E 2008E

Crude oil Natural gas

Production Outlook

2006-8-28 12

Puguang Gas Field in Northeast Sichuan

9 bcm per annum of capacity by 2008

12 bcm per annum of capacity by 2010

Puguang

DawanMaoba

Shuangmiao

2006-8-28 13

Expand Markets

Refined oil marketing Leverage brand to increase

retail and direct sales

Chemical products Leverage centralized

marketing to increase direct sales and increase competitiveness

Increase direct sales of chemical products to 65%

million tonnes

Sales Outlook for oil products

0

20

40

60

80

100

120

140

2005 2006E 2007E 2008E

30%

40%

50%

60%

70%

80%

90%

WholesalesDirect SalesRetailPercentage of termical sales,%

2006-8-28 14

Align Refining & Chemicals Capacity with Market Demand and Resource Availability

Ethylene Capacity

7,1006,0155,8155,395

0

2,000

4,000

6,000

8,000

2005 2006E 2007E 2008E

Refining Capacity187.0

163.1156.2148.9

0

50

100

150

200

2005 2006E 2007E 2008E

Million tonnes

Thousand tonnes

2006-8-28 15

Develop Modern Logistics

By year 2008 ， 90% of crude oil and 40% of oil products shall be transported through pipelines

2006-8-28 16

Improve Assets Value through Innovation

Improve scientific & technological innovation capabilities

Develop proprietary technology

Integrate various existing technologies to achieve leading edge

Adapt and improve licensed technology

Employ proprietary technology in key areas Exploration and production of oil and gas

Efficient use of resources

2006-8-28 17

Focus on Environment and Conservation

Improve HSE management

Conserve energy and protect environment

Leverage scientific & technological advances to achieve clean production

Expand recycling and use resources more efficiently

Achieve low consumption and low emission

1H 2006 Operational Results

2006-8-28 19

Review of Market Environment

China’s GDP grew at 10.9% Domestic consumption of oil products increased by 7.1%

Domestic consumption of petrochemicals (ethylene equivalent) increased by 6.3%

International crude oil prices were high and volatile

Petrochemical prices remained high

Refined oil products still subject to price controls

2006-8-28 20

E&P – Operational Summary

1H 2006 1H 2005 Change%

Crude oil production (mm bbls) 140.89 136.69 3.07

Natural gas production (bcf) 126.2 104.8 20.42

Lifting cost (RMB/tonne) 461 410 12.43

Newly added proved reserves of crude oil (mmbbls)

143.89 85.69 67.92

Newly added proved reserves of natural gas (bcf) 175.5 518.1 -66.13

30 Jun. 2006

31 Dec. 2005

Change%

Proved reserves of crude oil (mm bbls) 3,297 3,294 0.09

Proved reserves of natural gas (bcf) 3,001.0 2,951.7 1.67

Proved reserves of oil and gas (mm boe) 3,797 3,786 0.29

2006-8-28 21

E&P - Segment Performance

17,795

33,344

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1H 2005 1H 2006

2,316

3,310

748

660

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1H 2005 1H 2006

0

100

200

300

400

500

600

700

800

900

Crude oil Natural Gas

Crude Oil and Natural GasRealized Price

EBIT of E&P Segment

Crude OilRMB/tonne

Natural GasRMB/’000 cubic meter

RMB million

2006-8-28 22

Refining- Operational Summary

1H 2006 1H 2005 Change%

Crude Oil Processed (mm tonnes) 71.68 68.08 5.29

- Sour Crude Oil Processed (mm tonnes) 17.60 16.87 4.33

Gasoline Production (mm tonnes) 11.23 11.32 -0.80

Diesel Production (mm tonnes) 28.32 26.31 7.64

Kerosene Production (mm tonnes) 3.18 3.39 -6.19

Light Chemical Feedstock Production (mm tonnes)

11.47 10.16 12.89

Light Yield (%) 74.81 74.24 57bps

Refining Yield (%) 93.73 93.11 62bps

2006-8-28 23

Refining - Segment Performance

Refining Margin / Cash Operating Cost

Refining Margin(RMB/tonne)

EBIT of Refining Segment

RMB million

-93

141

118.00117.00

-150.00

-100.00

-50.00

0.00

50.00

100.00

150.00

1H 2005 1H 2006

-150.00

-100.00

-50.00

0.00

50.00

100.00

150.00

Refining MarginCash Operating Cost

-16,610

-1,296

-19,000

-17,000

-15,000

-13,000

-11,000

-9,000

-7,000

-5,000

-3,000

-1,000

1,000

1H 2005 1H 2006

Cash Operating Cost(RMB/tonne)

2006-8-28 24

Marketing – Operational Summary

1H 2006 1H 2005 Change%

Domestic sales of refined oil products (mm tonnes)

54.32 50.77 6.99

Incl. Retail (mm tonnes) 35.33 29.56 19.52

Distribution (mm tonnes) 9.69 10.39 -6.74

Total gas stations 29,198 30,352 -3.80

Incl. Self-operated stations 27,628 26,870 2.82

Franchised stations 1,570 3,482 -54.91

Annual average throughput of self-operated st

ations (tonnes/station)2,558 2,200 16.27

2006-8-28 25

Marketing - Segment Performance

2000

3000

4000

5000

6000

Jan Mar May Jul Sep Nov

2003 2004 2005 2006

2000

3000

4000

5000

6000

Jan Mar May Jul Sep Nov

2003 2004 2005 2006

RMB/tonne 1H2005 1H2006

Marketing cash operating cost

149.93 149.75

6,643

10,761

0

2,000

4,000

6,000

8,000

10,000

12,000

1H 2005 1H 2006

RON #90 Gasoline Guidance PriceRMB/Tonne

EBIT of Marketing Segment

RMB million

#0 Diesel Guidance Price

RMB/Tonne

2006-8-28 26

Unit: 1,000 tonnes 1H 2006 1H 2005 Change%

Ethylene 3,031 2,434 24.53

Synthetic resin 4184 3,528 18.59

Monomers & polymers for synthetic fibers 3577 3,152 13.48

Synthetic fiber 770 756 1.85

Synthetic rubber 318 308 3.25

Urea 906 998 -9.22

100% production from YPC-BASF and Shanghai-Secco was included.

Chemicals — Operational Summary

2006-8-28 27

Chemicals - Segment Performance

0

200

400

600

800

1000

1200

Jan-1990 Jan-1993 Jan-1996 Jan-1999 Jan-2002 Jan-2005

LDPE-Naphtha PP-Naphtha

RMB/tonne 1H2005 1H2006

Ethylene cash operating cost

1,236 1,262

10,815

7,198

0

2,000

4,000

6,000

8,000

10,000

12,000

1H 2005 1H 2006

Chemicals Price Spread (1990 - Jul. 2006)

USD/tonne

EBIT of Chemicals SegmentRMB million

2006-8-28 28

Cost Saving

1382

2500

0

500

1,000

1,500

2,000

2,500

3,000

2006 plan 1H2006 Actual

E&P Refining Marketing Chemicals

RMB million

1H2006 Cost Saving

2006-8-28 29

Capital Expenditure

1H2006 Capex

RMB million

30,452

70,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2006 Plan 1H 2006 Actual

E & P RefiningMarketing ChemicalsCorporate & Others

Exploration and Production: RMB 11.68 billion. Newly built production capacity of crude oil and natural gas was 2.95 million tonnes per year and 758 million cubic meters per year respectively

Refining: RMB 5.12 billion. Construction of the Yizheng-Changling crude oil pipeline completed; the refinery revamping projects in Guangzhou, Yanshan and Qingdao progressed smoothly

Marketing and Distribution: RMB 6.68 billion. Construction and acquisition of gas stations in key areas continued with 353 newly added stations

Chemicals: RMB 5.93 billion. Maoming ethylene expansion project, ethylene projects of Fujian and Tianjin as well as other projects such as synthetic fiber materials, synthetic rubber, and the fertilizer facilities revamping projects were proceeding on schedule.

2H 2006 Business Prospects

2006-8-28 31

Market Environment

China’s economy is expected to maintain its rapid growth

Demand for oil products and petrochemicals will increase steadily

International crude oil prices and chemical prices will remain high

Refining business will remain under pressure

Intensified market competition in domestic refined oil products (WTO – opening of wholesale end 2006)

2006-8-28 32

E & P

Increase oil & gas production

Add capacity in promising areas

Accelerate preparation for Puguang Gas Field development

2H Plan FY2006

Crude oil production (mm tonnes) 20.16 40.00

Natural gas production (bcm) 3.5 7.07

2006-8-28 33

Refining

Diversify crude sourcing to reduce purchasing cost

Proactively adjust product mix

Improve throughput of high value-added products

2H Plan FY2006

Crude throughput (mm tonnes) 73.30 144.98

2006-8-28 34

Marketing

Closely track market trends and align marketing strategy accordingly

Optimize resource allocation to maintain market position

Strengthen management and optimize marketing structure

2H Plan FY2006

Total domestic sales of refined oil products (mm tonnes)

56.00 110.32

2006-8-28 35

Chemicals

2H Plan FY2006

Ethylene production (mm tonnes) 3.03 6.06

Ensure safe and stable operations, and smooth start-up of new facilities

Optimize product mix, increase production of profitable and high-demand products

Leverage functions of chemical sales company

2006-8-28 36

Conclusion

Continue policy of “Reform, Restructuring, Innovation and Development ”

Achieve 2006 production and operations targets

Maintain sound performance

2006-8-28 37

For Further Information

http://www.sinopec.com

Investor Relations

Beijing: Tel: (8610) 64990060 Fax: (8610) 64990489Email: ir@sinopec.com

Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669Email: ir@sinopechk.com

New York: Tel: (212) 759 5085 Fax: (212) 759 6882Email: fangzq@sinopecusa.com

Media Relations

Tel: (8610) 64990092Fax: (8610) 64990093Email: media@sinopec.com