Sinopec aims to re­shape petroleum sec­tor

Huge in­vest­ment in past five years makes it the go-to en­ter­prise for economies along Belt and Road routes

China Daily European Weekly - - BUSINESS - By ZHENG XIN zhengxin@chi­

China Petroleum and Chem­i­cal Corp, also known as Sinopec, the world’s largest re­finer, be­lieves that by deep­en­ing co­op­er­a­tion with coun­tries and re­gions tak­ing part in the Belt and Road Ini­tia­tive, it can re­shape the petroleum and petro­chem­i­cal in­dus­try.

To­ward that end, it has in­vested about $100 bil­lion (89.4 bil­lion eu­ros; £77 bil­lion) in the past five years in such fields as oil and gas ex­plo­ration, de­vel­op­ment of oil fields, petroleum ex­ploita­tion, re­fin­ing, en­gi­neer­ing, crude oil trade, equip­ment, ma­te­ri­als and petro­chem­i­cals.

This has made it the go-to en­ter­prise for many economies seek­ing solutions and ex­per­tise in the petroleum in­dus­try and re­lated fields.

Ac­cord­ing to Wang Yupu, chair­man of Sinopec, many economies cov­ered by the Belt and Road routes have abun­dant petroleum and gas re­sources. They also see mas­sive de­mand for re­lated hard­ware and ser­vices, in­clud­ing re­fin­ing, in­vest­ments, tech­nol­ogy and equip­ment. Sinopec is em­i­nently placed to meet all of that de­mand, he says.

“Economies tak­ing part inthe ini­tia­tive have two-thirds of the global oil and gas reserves and half of global oil and gas out­put,” Wang says.

“With in­sti­tu­tions such as the Asian In­fra­struc­ture In­vest­ment Bank and the Silk Road­Fund­back­ing Chi­nese en­ter­prises’ ex­pan­sion, Sinopec has es­tab­lished co­op­er­a­tion with over 30 Belt and Road coun­tries.”

Sinopec has con­ducted oil and gas ex­plo­ration and de­vel­op­ment with 11 Belt and Road coun­tries since 2001, in­volv­ing it­self in 18 projects in Rus­sia, Kaza­khstan, In­done­sia, Myan­mar, Iran, Syria, Saudi Ara­bia, Ye­men, Egypt andMon­go­lia.

With an in­vest­ment of more than $20.3 bil­lion, the com­pany had ac­quired more than 98.3 mil­lion­metric tons of equity oil by the end of 2016.

The com­pany has pro­vided petroleum en­gi­neer­ing ser­vices to more than 20 Belt and Road coun­tries, in­clud­ing well-drilling and log­ging, geo­phys­i­cal prospect­ing and land sur­face con­struc­tion. It has signed 745 en­gi­neer­ing tech­ni­cal ser­vice con­tracts worth about $11 bil­lion in the past five years.

In the field of petroleum re­fin­ing, 72 new busi­ness con­tracts were signed with 10 coun­tries, in­clud­ing Iran, Saudi Ara­bia, Kaza­khstan, the United Arab Emi­rates, In­dia, Malaysia and Thai­land, since 2011, with a to­tal con­tract value of $9.5 bil­lion, it says.

Fig­ures from the com­pany show that in the past five years, Sinopec has im­ported more than 1.1 bil­lion tons of crude oil from 15 coun­tries, petro­chem­i­cals val­ued at $10.2 bil­lion from 18 coun­tries and equip­ment and ma­te­ri­als worth $91.6 mil­lion.

It also has in­vested in six re­fin­ery stor­age projects in five coun­tries along the routes.

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