1. 1 Objective …. Review the Oil & Gas opportunity and Strategy Accounts including … – CNPC … BGP, CNPCSE, CPFinance – PetroChina – CNOOC … CNOOC Ltd.

2. 2 Customer Overview CNPC  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. 3 Organization Chart - CNPC CNPC One of them is PetroChina Installation Base BGP, CPFinance – Oracle CNPCSE - PFST

4. 4 Organization Chart - PetroChina Four major biz units as P/L centers

5. 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. 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 Result Implementation Module Project 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. 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. 8 Earnings CNPC SE 2001 2002 2003 Revenue($M) $425 $726 $1,359 EBIT ($M) $16 $19 $60

9. 9 CNPC SE Company structure

10. 10 CNPC / PetroChina Coverage Map Note: CNPCSE HQ and its subsidiaries license PFST finance CNPCSE HQ and CPTDC license PFST HCM

11. 11 Customer Overview CNOOC  State-owned Chinese company  Registered with a capital of 50 billion RMB and has 22,000 employees at present, including 1000 foreign employees.  At the end of June 2003, CNOOC had total assets of 107.4 billion RMB and net assets of 63.6 billion RMB.  Three listed holding companies, and non-listed holding trust company and eight subsidiaries of sole investment, and manages a petrochemical company and a life insurance company in cooperation with Shell and Dutch Life Insurance Company respectively.

12. 12 Organization Chart – CNOOC Group Installation Base CNOOC Ltd. - Oracle

13. 13 CNOOC Ltd. Page Link

14. 14 Earnings CNOOC Group:  Annual production 23.29 million tons of oil equivalent  Revenu : 37.6 billion RMB  Net profit : 11 billion RMB  Total assets: 88.8billion RMB  Net assets: 50.1 billion RMB CNOOC Ltd.:  ROE26.4%  ROACE22.7%  Oil ang Gas Revenues (RMB)28,117 Million  Net Income (RMB)11,535 Million  EBITDE (RMB)2,2000 Million  Production (BOE/day)356,729

15. 15 CNOOC Coverage Map

16. 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. 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 office 2.CRM – Front Office 3.Upstream 4.JDE  See any chance of “spin off” project such as: –SHE chance? –ICM??

18. 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. 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