China Petroleum & Chemical Corporation 1H 2006 Results Announcement

1. China Petroleum & Chemical Corporation1H 2006 Results Announcement August 28, 2006 Hong Kong

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.

3. Agenda • 1H 2006 Financial Highlights • Growth Strategy • 1H 2006 Operational Results • 2H 2006 Business Prospects

4. 1H 2006 Financial Highlights

5. Profit Growth

6. Financial Position

7. ROCE and Dividend Dividend Per Share ROCE RMB Yuan ROCE for 1H 2006 is not annualized

8. Growth Strategy

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

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

11. Production Outlook x10,000 tonnes oil equivalent Expand Resources • Stabilize mature fields • Develop new fields • Explore new areas Songliao Basin Tarim Basin Chaidamu Basin Ordos Basin Sichuan Basin

12. 9 bcm per annum of capacity by 2008 12 bcm per annum of capacity by 2010 Puguang Gas Field in Northeast Sichuan Maoba Dawan Puguang Shuangmiao

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% Sales Outlook for oil products million tonnes

14. Align Refining & Chemicals Capacity with Market Demand and Resource Availability Million tonnes Thousand tonnes

15. By year 2008，90% of crude oil and 40% of oil products shall be transported through pipelines Develop Modern Logistics

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

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

18. 1H 2006 Operational Results

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

20. E&P – Operational Summary

21. E&P - Segment Performance Crude Oil and Natural Gas Realized Price EBIT of E&P Segment Crude Oil RMB/tonne Natural Gas RMB/’000 cubic meter RMB million

22. Refining- Operational Summary

23. Refining - Segment Performance Refining Margin / Cash Operating Cost EBIT of Refining Segment Refining Margin (RMB/tonne) Cash Operating Cost (RMB/tonne) RMB million

24. Marketing – Operational Summary

25. Marketing - Segment Performance RON #90 Gasoline Guidance Price EBIT of Marketing Segment RMB/Tonne RMB million #0 Diesel Guidance Price RMB/Tonne

26. Chemicals — Operational Summary 100% production from YPC-BASF and Shanghai-Secco was included.

27. Chemicals - Segment Performance EBIT of Chemicals Segment Chemicals Price Spread (1990 - Jul. 2006) RMB million USD/tonne

28. Cost Saving 1H2006 Cost Saving RMB million

29. Capital Expenditure 1H2006 Capex • 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. RMB million

30. 2H 2006 Business Prospects

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)

32. E & P • Increase oil & gas production • Add capacity in promising areas • Accelerate preparation for Puguang Gas Field development

33. Refining • Diversify crude sourcing to reduce purchasing cost • Proactively adjust product mix • Improve throughput of high value-added products

34. Marketing • Closely track market trends and align marketing strategy accordingly • Optimize resource allocation to maintain market position • Strengthen management and optimize marketing structure

35. Chemicals • 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

36. Conclusion • Continue policy of “Reform, Restructuring, Innovation and Development ” • Achieve 2006 production and operations targets • Maintain sound performance

37. For Further Information http://www.sinopec.com Media Relations Tel: (8610) 64990092 Fax: (8610) 64990093 Email: media@sinopec.com Investor Relations Beijing: Tel: (8610) 64990060 Fax: (8610) 64990489 Email: ir@sinopec.com Hong Kong: Tel: (852) 28242638Fax: (852) 28243669 Email: ir@sinopechk.com New York: Tel: (212) 759 5085 Fax: (212) 759 6882 Email: fangzq@sinopecusa.com