CNPC (Hong Kong) Limited, together with its subsidiaries, is engaged in the exploration and production of crude oil and natural gas. It has 11 oilfields located in seven different countries, four of which are exploration projects. Its petroleum business includes Liaohe Leng Jiapu Oil Field and Xinjiang Karamay Oil Field in the People’s Republic of China; Zhanazhol, Kenkyak (pre-salt) and Kenkyak (post-salt) Oil Fields in the Republic of Kazakhstan; Sukhothai Concession and L21/43 Concession in the Kingdom of Thailand; Talara Oil Field and Blocks 111/113 in Peru; Block 5 in the Sultanate of Oman; Bengara II in Indonesia, and Kursangi and Karabagli Oil Field and Gobustan Oil Field in the Azerbaijan Republic. Steel Pipes Factory, set up with North China Petroleum Administration Bureau, produces steel pipes. During the year ended December 31, 2008, a total of 499,000 tons of steel pipes were sold by the Steel Pipes Factory and 488,000 tons were processed from material purchased on its own.