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Sinopec

By Jon Kennedy,2014-09-22 12:46
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Sinopec

    Sinopec

SinopecAcceleratesItsStrate

    ;f0rInternationalization

    ;chinaPetrochem1cal

    ;Corporation(Sinopec)is

    ;obviouslyacceleratingits

    ;strategyforacquisitionof

    ;overseasoilandgasassetsin

    ;2010.Thesecondlargestoil

    ;andgasproducerinChina

    ;aimstotakeadvantageofthe

    ;worldwideresourcestomeet

    ;thecountry’soildemandthatis

    ;risingatadouble-digitgrowth

    ;rate.

    ;US$4.65boiIsanddeal

    ;china’sstate.owned

    ;SinoPecP1anstobuY

    ;ConocoPhi11iPs’stakein

    ;thehugeSyncrudeproject

    ;inCanada’soilsandsfor

    ;US$4.65bi11ion.marking

    ;oneofthecountry’slargest

    ;investmentseverinNorth

    ;America.Conocophi11ips,the

    ;US-basedoi1major,wil1sel1

    ;its9.03percentinterestinthe

    ;onMay16,theopeningceremonyofSINOPECFue20f2SalesCo.,Ltd.was ;IternationalConvention.SIN0PECpresidentSuShulinattendedtheceremony. ;0f2SalesCo.,Ltd.isthewhollyownedsubsidiaryofChinaPetroleumChemica

    ;isheadquarteredinBeijingandconsistsofin,Shandong,Shanghai,]iangsu,2 ;andGuangdongbranchcompaniesaswellasZhefiangZhoushanCompany.Itisre ;unifiedoperationandprofessionalmanagementofSI0PEc,sefobusiness. ;SyncrudeCanadaLtd.proiect

    ;toChina’stoprefinerinadealsettocloseinthethirdaroundtheworldtohelpfeeditsfast.growi

    ;quarter.Oilsandsaredepositsofbitumen.allextra.heavyThedealdiffersfromotherChineseoilsands

    ;oilwhichhastobetreatedforuseinrefineriestoproducewhichinvolvedearly.stageprojects.FirstEr

    ;gasolineanddieselfuels.Corp.analystMikeDunnsaid.Syncrude ;TheacquisitionisnotthefirstinvestmentbyaChineseprojectintheoilsands.hasoperatedsince1

    ;companyinCanada’soilsandsbutitisthelargest.Itnowpumpout350,000barrelsaday,roughl

;underlinestheresurgenceininterestinthevastbutofCanada’soveralIoiloutput.

    ;dicult.to.extractenergyresourcelocatedintheprovinceForConocoPhil1ips,thedealispartof

    ;ofAlbe~a.InvestmentintheoilsandshasjumpedsinceUS$10billiondispositionprogram.Wheni

    ;crudepricesshotpastUS$80abarrelwiththeglobalwasputtingthestakeontheblocklastOctc

    ;economicrecoverygainingtraction.ChinahasspentpeggedthevalueatUS$3.6billiontoUS$41

    ;billionsofdollarsacquiringenergyandminingassetsdealgoesalongwayinhelpingthemreach

    ;OILFOCUS

    ;billionasset-salegoa1.It’Sprobablyabiggerchunkthan

    ;theyhadantiCipated,”saidA11enGood.analystWith

    ;Morningstar.Theoilsandsmakeupthelargestcrude ;depositoutsidetheMiddleEast,aresourceattractinga ;Who’SWhooftheglobaloilindustrywillingtopayextra

    ;indevelopmentcostsinexchangeforasecuresupplyina ;politicallystablecountry.

    ;SinopecalreadyhasanoiIsandsstake.LastApril.it ;boughtanadditional10percentinterestin110tal’splanned

    ;NorthernLightsProjectforanundisclosedsum.Also ;in2009,PetroChinaacquiredamajoritystakeinleases ;heldbyAthabascaOilSandsCorp.forUS$1.9billion. ;Sinopec’Slatestdealrequiresapprovalsfromgovernments

    ;inCanadaandChina.CanadarecentlySHbjecteddeals ;involvingforeignstateownedenterpriSeStomore

    ;regulatoryscrutiny,buthasnotrejectedanyoilsands ;transactions.Analystssaidtheydonotseeregulators ;blockingthedeal,especiallywithSinopecbuyinga ;minoritystakeinSyncrude.

    ;SpendingbyChinesecompaniesonminingandenergy ;acquisitionsreachedarecordUS$32billionlastyear. ;China,SouthKorea,JapanandIndiaareseekingoverseas ;resourcestodrivetheireconomies.TheInternational ;continuetostruggleinthefirsthalfof2010,asBeijing ;procrastinatesonraisingstate?setfuelpricesforfearof ;stokinginflation.”Thisisalong—termpositive,’’said

    ;GordonKwan,ananalystatMiraeAssetSecurities.”They

    ;needtheupstreamassetstocompetewithPetroChinaand ;CN0OC.”

    ;WiththeAngolatransaction,Sinopec’Sremaining

    ;provenreservesofcrudeoilwillincrease3.6percentand ;itsdailycrudeoilproductionwillrise8.8percent.’’This

    ;acquisitionmarkstheentryofSinopecintotheoverseas ;upstreamE&P(explorationandproduction)business,and ;formsthebasisforthecompanytoacquirefuturenewoil ;andgasassets,”Sinopecsaidinastatement.

    ;InadditiontotheacquisitionprojectsinCanadaand

    ;Anglo,SinopechasrecentlycompletedaUS$1.3billion ;naturalgaspipelineinBrazil.The1,377kilometerf856.

    ;mile)linkisthecompany’Slargestoverseasservice

    ;contract.Thepipelinegoesthrough72citiesandcan ;transport20millioncubicmetersofgasaday,according ;toastatement.releasedbySinopecinmidApril. ;DiscussingjointprojectinSingapore

    ;SinopeciscurrentlyindiscussionwiththeSingapore ;aconvenientregionalbusinesshubconnectingtoother ;pansoftheworld.”IthinkitshouldhavetakenSingapore

    ;asaplatformforoverseasexpansion.”hetoldreporters

    ;inaninterviewinSingapore,addingthat’’Singapore’S

    ;investmentpoliciesaretransparent…andrisks(of

    ;investment,arelOW.”

    ;US$1.3bBraziIpipeline

    ;SinopechasrecentlyalsocompletedaUS$1.3billion ;naturalgaspipelineinBrazil.The1,377kilometer(856

    ;mile)linkisthecompany’Slargestoverseasservice

    ;contract.Thepipelinegoesthrough72citiesandcan ;transport20millioncubicmetersofgasaday,according ;toastatementreleasedbySinopecinearlyApril.hina ;isexpandinginvestmentinBrazil’Soil,miningandsteel

    ;industriestomeetrisingdemandintheworld’Sfastest-

    ;growingmajoreconomy.

    ;Petrobras.astheRiodeJaneiro.basedcompanyiS ;known.receivedUS$10billionofloansfromChinaIast ;yeartohelpfinancethedevelopmentofTupifield,the ;largestoildiscoveryintheAmericasinmorethanthree ;decades.InreturnstatecontrolledPetrobrashasbeen

    ;supplyingoiltoChina,theworld’Ssecond—biggestenergy

    ;userandBrazil’Sleadingtradepartnerin2009.Recent

    ;OILF0CUS

    ;anaturalgaspipelinelinkingYulininShaanxiandJinan ;inShandong,andacrudeoilpipelinelinkingRizhaoin ;ShandongandYizhenginJiangsu.?

    ;Sinopec’Sannualspendingonitsassetsinthenext

    ;twoyears,excludingfundsforoverseasacquisitions,will ;reachabout120billionyuan,accordingtoWangXinhua, ;chieffinancialofficer.Analystssaidtherapidrecovery ;oftheChineseeconomywillprovidestrongsupportto ;theconsumptionofoilproductsthisyear,andSinopec ;willbeamajorbeneficiary.Sinopecrefined20percent ;morecrudeoilinthefirstqua~ercomparedwithayear ;earliertomeethigherdomesticdemand.Itprocessed

    ;49.5milliontonsofcrudeduringtheperiodandreported ;a40percentjumpinprofits.Chinesecompaniesledby ;PetroChinaandSinopechavespeededupbuildingoil ;refiningandchemicalmanufacturingcapacitytomeetthe ;risingdemandinthedomesticmarket.

    ;Sinopecputintooperationa34-bi11ion’yuan

    ;petrochemicalcomplexinTianjinonMayII.Thefacility ;willbeabletorefine10milliontonsofcrudeannually ;andproduce1milliontonsofethyleneeveryyear.The ;ethylene??manufacturingprojectisa50--50jointventure ;betweenSinopecandSaudiBasicIndustriesCorp. ;(SABIC)ofSaudiArabia.Thecompanyhasreceived ;

    ;FOCUS

    ;7kilometersawayfromSinopec’sTianjinpetrochemical

    ;project,whichcanrefine10milliontonsofcrudeand ;produce1milliontonsofethyleneannually.Sinopec ;hasjuststartedoperatingthepetrochemicalcomplex. ;Theprojectwillhelpstabilizesupplyofoilproductsin ;northernChina,saidSinopecPresidentWangTianpu. ;Chineseoilcompanieshavequickenedtheirpacein ;buildingoilreserves.Sinopecstartedbuildinganother ;commerciaIoiIreserveinGuangdonginMarch.which ;isdesignedtohave15oiltankseachwithcapacityof ;125,000camandisexpectedtocomeonstreaminthe ;secondhalfof2011.AnalystshavelongsuggestedChina ;buildacomprehensivesystemofoilreservestoensure ;energysafety.Thecountryplanstobuildeightmore ;nationaloi1reservebasesasthesecondbatchofitsreserve ;bases.Underathreeyear(2009.201l,blueprintoutlined ;bytheNationalEnergyAdministration(NEA),Chinawill ;collectandstore44.6millioncumofcrudeoilby2011. ;Sinopecrefines20%moreoillofuelChina’s

    ;economV

    ;Sinopecrefined20percentmorecrudeoilinthefirst ;quarterof2010ascomparedwithayearearliertomeet ;higherfueldemandfromcarownersandfactoriesin ;theworld’sfastest-growingmajoreconomy.Thegiant

    ;refinerprocessed49.5millionmetrictonsofcrudeintooil ;products,accordingtoastatementreleasedbytheBeijing

    ;basedcompanyinlateAprilasitreporteda40percent ;iumpinprofitforthefirstthreemonths.

    ;Therefiner,assuredaprofitbythegovernmentfor ;supplyingfuelsatstatemandatedprices,hasrampedup

    ;capacityandproductionandplanstoraisemorefunds ;forexpansionbysellingbonds.

    ;Sinopec’scrudeoil

    ;processinginthefirstthreemonthsof2010outpaced ;BP’s8percentincreaseandRoyalDutchShell’s5percent

    ;decline.”TherapidChineseeconomicrecoverywill

    ;continuetoprovidestrongsupporttotheconsumptionof ;oilproductsthisyear,andSinopecundoubtedlywillbethe ;biggestbeneficiarycomparedwithitsglobalpeers,’’said

    ;WangAochao,headofChinaenergyresearchatUOB. ;KayHianLtd.inShanghai.Chinawillaccountforalmost ;athirdofglobaloildemandgrowththisyear,according ;totheInternationalEnergyAgency,offsettingstagnant ;consumptionindevelopedeconomies,particularlyEurope. ;That’swhyShellandBPareeonsideringinvestinginnew

    ;refineriesandpetrochemicalplantsinChina. ;TheChineseeconomygrew11.9percentinthefirst ;quarter,thefastestpaceinalmostthreeyears.Sinopec’s

    ;fuelsalessurged24percentto32.8milliontonsduring ;theperiod.Chinasetsruelpricestocurbinflation.More ;thanayearago,thegovernmentrelaxedpricingcontrols ;aspartofeconomicreforms,promptingnewinvestments ;intherefiningindustry.Gasolineanddieselpriceswere ;lastraisedbyasmuchas4.6percentonApril14.The ;governmenthasadjustedprices10timessinceintroducing ;amechanisminDecember2008thatallowsChinato ;revisepriceswhencrude.oi1costschangemorethan4 ;percentover22workingdays.OilinNewYorkhasmore ;16CHINAo,L&G4S

    ;No.2,2010

    ;thandoubledfromlastyear’slowin

    ;FebruarytoUS$82abarre1.Sinopec

    ;willurgethegovernmenttoraisefuel

    ;priceswhentheconditionsforan

    ;adjustmentaremet,ChiefFinancial

    ;OfficerWangXinhuarecentlysaid.

    ;It’shardtoestimatehowmuchprofit

    ;Sinopecwouldmakefromrefining

    ;inthesecondquarter,aschangesin

    ;theglobalcrudeoi1marketandthe

    ;paceofChina’sfuelpriceadjustments

    ;remainuncertain,Wanggaid,adding

    ;that”Sinopecstil1facespressurejnits

    ;refiningoperations.’’

;40,O00,tonnagePearltankerofChina

    ;ChangliangNationalShippingfGroup)

    ;CorporationdockedatthewharfofSINOPEC

    ;finlingCompany.

    ;OILFOCUS

    ;OnMay29,meoilqualityupgradingprojectofSINOPECShqiazhuangRefining8ChemicalCompany,

    withcapacityofeightmillion

    ;tonsperyear,heldaceremonyfortheopeningofconstructioninShijiazhuang,H

    dProvince.Theimplementationoftheprojectwillmeet ;therequirementofregionaleconomicdevelopmentinNorthChinadorproductoilandpromotetheoilqua

    lityupgradeandenvironmental

    ;qualityenhancement.Theprojectcoversanareaof70hectaresandhasatotalinvestmentof6.371billiony

    uan.

    ;Sinopectoboostunconventionalgas

    ;production

    ;InastatementreleasedbySinopecinJune,Sinopec,the ;secondlargestChineseoilcompanyplanstoincreaseits ;unconventionalgasproductioncapacitytomorethan2.5 ;billioncubicmetersannuallybytheendof2015,amove ;inlinewithChina’seffortstodiversifyitsenergymix.

    ;Sinopecwillspeedupthedevelopmentofunconventional ;spokesmanforSinopec.

    ;ThecompanyisintalkswithBritain’sBPPlc

    ;overpotentiallycollaboratingintheexplorationand ;developmentofshalegasinChina.Analystssaidusing ;moreadvancedforeigntechnologyinthesectorwould ;acceleratetheexploitationofChina’sgasreserves.

    ;Unconventionalgasmayaccountfor30percentof ;China’stotalgasoutputby2020.Useofunconventional ;gasincludingshalegasandcoalbedmethaneduringthegaswouldbeaneffectivesubstitutetomeetChina’

    srising

    ;centralgovernment’s12thFive—YearPlanperiod(2011

    ;15,.Developmentofunconventionaloilandgaswill ;becomeanimportantgrowthengineforthecompany’s

    ;businessinthenextfiveto10years.

    ;naturalgasdemand,saidanalysts.

    ;Chinawouldneed200billioncubicmetersofnatural ;gasin2015,doublingthe2008level,accordingtoLiu ;Xiaoli,aseniorindustrialresearcherattheenergyresearch ;ThecompanyhasstartedunconventionaloilandinstituteundertheNationalDevelopmentandReform

    ;gasexplorationanddevelopmentinShanxi,Shaanxi, ;Guizhou,AnhuiandJiangsuprovinces.Accordingto ;Sinopec’s2009corporatesocialresponsibilityreport,the

    ;companyhassetplanstodevelopcoalbedmethanemainly

    ;innorthernChina,andshalegasinsouthernpartofthe ;country.

    ;‘‘Sinopechasbeenpayingincreasingattentiontothe

    ;developmentofnewenergies.Wehavenowextended ;thebusinessintomanyareasincludingunconventional ;Commission.

    ;Thenation’sannualdemandforthecleanenergywill

    ;growto300billioncubicmetersby2020,accordingto ;theresearcher.

    ;Between2000and2008.China’sannualconsumption

    ;ofnaturalgasincreased16.2percentonaverage.9.7 ;percentagepointshigherthantheannualgrowthratefor ;oilconsumption,or6.6percentagepointshigherthanthe ;annualgrowthrateforcoalconsumption.

    ;gandg.othema1energy,”saidHuangwensheng,

    ;

    ;CHINA0/L&GAS

    ;No2.2OlO

    ;17

    ;

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