Breaking Down Zhongman Petroleum and Natural Gas Group Corp., Ltd. Financial Health: Key Insights for Investors

Discover how Zhongman Petroleum and Natural Gas Group (ZPEC), founded in 2003 and headquartered in Lingang New Area of the China (Shanghai) Pilot Free Trade Zone, is translating a bold mission to become a domestic first-class, internationally renowned high‑tech oil and gas corporation into measurable progress-allocating 10% of annual revenue to R&D (about ¥200 million in 2023), reporting 4.13 billion yuan in revenue for 2024 with a 10.79% year‑on‑year increase, and offsetting roughly 50,000 tons of carbon emissions annually through reforestation and renewable projects; from completing 19 new wells in the Wensu Oilfield (bringing production to about 450 wells) to securing strategic international projects in Iraq and a joint venture in Algeria's Zerafa II gas block, ZPEC's emphasis on technological innovation, environmental responsibility, operational excellence, international expansion and a reported 20% uplift in customer satisfaction signal concrete milestones that invite a closer look at the company's mission, vision and core values driving its next phase of global growth.

Zhongman Petroleum and Natural Gas Group Corp., Ltd. (603619.SS) - Intro

• Founded: 2003
• Headquarters: Lingang New Area, China (Shanghai) Pilot Free Trade Zone
• Primary focus: Drilling & completion engineering, petroleum equipment manufacturing
• International footprint: Iraq (West Qurna Two), Kazakhstan, Algeria (Zerafa II JV)

• Deliver reliable, efficient, and technologically advanced oilfield services that maximize customer value across domestic and international operations.
• Continuously innovate drilling and completion technologies to improve safety, reduce costs, and lower environmental impact.

• Be a globally recognized leader in oilfield services and petroleum equipment manufacturing, driving sustainable hydrocarbon development and energy transition solutions.
• Expand long-term strategic partnerships in key overseas basins while elevating service digitalization and automation capabilities.

• Safety First - prioritize personnel, operational, and environmental safety across all projects.
• Innovation - commit significant resources to R&D and adopt new technologies (company reports investing approximately 10% of annual revenue into R&D, about ¥200 million in 2023).
• Client-Centricity - deliver measurable value through integrated services and lifecycle support.
• Integrity & Compliance - adhere to international standards, contractual discipline, and ethical conduct in domestic and overseas markets.
• Collaboration - build long-term joint ventures and partnerships (e.g., West Qurna Two operations and the Zerafa II JV in Algeria).

• International expansion: deepen presence in Middle East and North Africa (West Qurna Two, Zerafa II) and Central Asia (Kazakhstan).
• Technology leadership: maintain R&D momentum, digital drilling systems, and equipment manufacturing integration.
• Service integration: offer end-to-end drilling, equipment, and production management to increase contract value and client stickiness.
• Financial resilience: target revenue growth (2024 revenue ¥4.13 billion, up 10.79% YoY) while managing capital allocation to R&D and international project deployment.

• West Qurna Two (Iraq) - secured drilling projects to strengthen Middle East presence.
• Zerafa II (Algeria) - joint venture with Algeria's national oil company to develop a natural gas block and expand gas service capabilities.
• Equipment manufacturing scale-up - leverage domestic manufacturing base in Shanghai FTZ to support overseas drilling fleets and service contracts.

Zhongman Petroleum and Natural Gas Group Corp., Ltd. (603619.SS) - Overview

• Zhongman Petroleum and Natural Gas Group Corp., Ltd. (603619.SS) pursues a mission to build a domestic first-class, internationally renowned high‑tech comprehensive oil and gas corporation, driven by technological leadership, operational excellence, and global expansion.

• Become a leading integrated energy technology provider recognized for innovation, low‑carbon operations, and reliable delivery across domestic and overseas markets.

• Innovation: sustained investment in R&D to raise efficiency and develop proprietary technologies.
• Responsibility: measurable environmental programs that materially reduce carbon footprint.
• Safety & Quality: continuous improvement in operations and service quality.
• Global Collaboration: strategic partnerships and project delivery in international markets.
• Customer Focus: prioritizing client satisfaction and long‑term service relationships.

• Technological innovation: allocating approximately 5% of annual revenue to research and development to improve drilling efficiency, digital oilfield capabilities, and advanced completion technologies.
• Carbon management: implementing initiatives that offset roughly 50,000 tons of CO2e per year via reforestation, renewable energy deployment, and efficiency projects.
• Production growth: sustaining upward well counts and output - 19 new wells completed in the Wensu Oilfield in 2025, bringing the field to about 450 producing wells.
• International expansion: winning drilling and service contracts in Iraq and forming joint ventures in Algeria to broaden revenue sources and technical footprint.
• Customer satisfaction: documented improvement in client feedback metrics, with an observed ~20% increase attributed to consistent high‑quality delivery.

• R&D projects focus: enhanced recovery techniques, automated drilling rigs, and digital monitoring systems to reduce non‑productive time and lower unit operating cost.
• Environmental projects: mixed portfolio of reforestation schemes, small‑scale renewables at field sites, and energy‑efficiency upgrades targeting the stated 50,000 tCO2e offset.
• International delivery: mobilization of engineering and drilling teams for Iraq projects and technical JV participation in Algeria to transfer expertise and capture export revenue.

Zhongman Petroleum and Natural Gas Group Corp., Ltd. (603619.SS) - Mission Statement

• Deliver world-class, end-to-end oilfield services that improve client recovery rates and reduce lifecycle costs.
• Expand global operations through strategic investments and joint ventures in priority regions such as Iraq and Algeria.
• Invest in R&D and digital technologies to raise operational efficiency, safety, and environmental performance.
• Balance commercial growth with measurable carbon reduction and ecosystem protection initiatives.
• Forge long-term partnerships with national and international oil companies to co-develop reserves and infrastructure.

• International footprint - accelerate project delivery and resource development in overseas markets, with active investments and projects in Iraq and Algeria.
• Partnerships - pursue collaborative frameworks, exemplified by the joint venture with Algeria's national oil company to develop the Zerafa II natural gas block.
• Environmental sustainability - implement operational measures and offset programs that collectively counterbalance a significant portion of operational carbon emissions (on the order of tens of thousands of tonnes CO2e annually) while pursuing further reductions.
• Technology & R&D - allocate a meaningful share of revenue (approximately 4-6% of annual revenue) to research, development and deployment of digital oilfield, drilling optimization, and low-carbon technologies.
• Financial resilience - maintain robust top-line growth and margin discipline; reported revenue growth of 10.79% in 2024 underscores ongoing commercial momentum.

• Scale overseas project delivery: deploy integrated EPC and drilling service packages to capture higher-value contracts in the Middle East and North Africa.
• Deepen JV relationships: expand scope and reserves development with partners such as the Algeria national oil company on Zerafa II.
• Accelerate digitalization: implement predictive maintenance, drilling automation, and reservoir optimization to reduce non-productive time and emissions intensity.
• Enhance sustainability programs: invest in methane monitoring, energy-efficiency retrofits for operations, and verified offsetting to lower net operational emissions.

Zhongman Petroleum and Natural Gas Group Corp., Ltd. (603619.SS) - Vision Statement

• Technological innovation: dedicating approximately 10% of annual revenue to research and development to drive operational efficiencies and new technology development.
• Environmental responsibility: implementing programs that offset about 50,000 tons of carbon emissions annually through reforestation and renewable energy projects.
• International expansion: securing strategic projects such as drilling in Iraq's West Qurna Two oilfield and a joint venture with Algeria's national oil company to develop the Zerafa II natural gas block.
• Operational excellence: delivering high-impact field performance (e.g., completion of 19 new wells in the Wensu Oilfield in 2025, bringing the total to ~450 producing wells).
• Customer satisfaction: achieving a measured 20% improvement in client feedback scores due to higher-quality output and service.
• Financial resilience: sustaining top-line growth with a reported 10.79% increase in revenue in 2024.

• Scale R&D programs focused on drilling automation, enhanced oil recovery, and low-emission field solutions.
• Expand carbon mitigation portfolios combining reforestation, renewables, and methane reduction projects to grow the current ~50,000-ton offset baseline.
• Pursue targeted international bids and JVs in the Middle East and North Africa to diversify production and capture higher-margin opportunities.
• Drive operational KPIs-well delivery time, uptime, unit lifting cost-against bench-marking targets informed by recent Wensu Oilfield performance.
• Institutionalize customer feedback loops that maintain and extend the demonstrated 20% service-quality gains.