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.isthewholly—ownedsubsidiaryofChinaPetroleumChemica』
;isheadquarteredinBeijingandconsistsof口in,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.
;di筒cult.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 ;involvingforeignstate—ownedenterpriSeStomore
;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 ;natural—gaspipelineinBrazil.The1,377一kilometerf856.
;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 ;natural—gaspipelineinBrazil.The1,377一kilometer(856一
;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.Inreturnstate—controlledPetrobrashasbeen
;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.Underathree—year(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 ;supplyingfuelsatstate—mandatedprices,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曲
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,
;一
;CHINA0/L&GAS
;No2.2OlO
;17
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