China Petroleum & Chemical Corporation also referred to as Sinopec Corp., has integrated upstream, midstream, and downstream operations, strong oil & petrochemical core businesses, and a complete marketing network. The company is a listed company on domestic and international stock exchanges.
The group operates through five reportable segments:
- Exploration and Production — engaged in exploration and development of oil fields, production of crude oil and natural gas, selling of products to the refining segment of the Group and external customers.
- Refining — engaged in processing and purification of crude oil, which is sourced from the exploration and production segment of the group and external suppliers, and manufactures as well as sells petroleum-based products.
- Marketing and Distribution — owns and operates oil depots and service stations in the People’s Republic of China (PRC), and distributes and sells refined petroleum products through wholesale and retail sales networks.
- Chemicals — engaged in manufacturing and sales of petrochemical products, derivative petrochemical products, and other chemical products to external customers.
- Others — comprises trading activities of import and export companies of the Group and research and development undertaken by other subsidiaries.
Production & Operations Review 2018
- Exploration and Production
- In 2018, the company was engaged in high-efficiency exploration and profit-oriented development
- The company added new reserves in China and reached to 458.2 million barrels of oil equivalent with crude oil reserve replacement ratio at 131.7%
- The company production of oil and gas reached 451.46 million barrels of oil equivalent, with domestic crude production registering 248.93 million barrels and natural gas production
- In 2018, the company processed 244 million tons of crude oil, up by 2.3% and produced 155 million tons of refined oil products, up by 2.7%, with gasoline up by 7.2% and kerosene up by 7.6% Year-on-Year
- Marketing and Distribution
- Total sales volume of refined oil products for 2018 was 198 million tons, of which domestic sales volume accounted for 180 million tons. In addition, the company focuses on strengthening, development, and marketing of self-owned brands to speed up growth of the non-fuel business.
- The ratio of new and specialty products in synthetic resin reached 64.3%, and the ratio of high-value-added products in synthetic rubber amounted to 26.3%
- In 2018, the company focused on innovation-driven strategy and reformation of R&D mechanism and pushed ahead with efforts in key and frontier technologies
- In 2018, the company had 6,074 patent applications at home and abroad, among which 4,434 were granted
Production & Operations Review 2019
- Exploration and Production
- In 2019, the company announced a plan to produce 288 million barrels of crude oil, of which overseas production of natural gas was 1,019.1 billion cubic feet, and 39 million barrels
- Sinopec Corp. is focused on expanding capacity of the Tahe Oilfield, through a technological breakthrough for undeveloped oil-bearing reservoirs, and for improving refined reservoir characterization of mature fields, with the objective to increase reserve development rate and recovery rate
- In 2019, the company announced a plan to process 246 million tons of crude oil and produce 157 million tons of refined oil products
- Marketing and Distribution
- In 2019, the company plans to sell 182 million tons of refined oil products in the domestic market
- The company announced a plan to explore the new business mode of “Internet + service stations + convenience stores + comprehensive services” to advance the development and marketing of self-owned brands and to advance growth of its nonfuel business
- The company announced a plan to enhance the dynamic optimization of facilities and product chain, as well as to improve utilization and production schedule based on market demand
- The company’s focus is on increasing cultivation and production capacity to produce high-end products and create more value. In 2019, the company plans to produce 12.12 million tons of ethylene.
- In 2019, the company announced that it would be adopting various long-term strategies and pushing forward high-quality development in an all-round manner to achieve sound results
- Tianjin LNG project: The first phase of Tianjin LNG project, which was completed and put into operation at the end of January 2018, with a designed receiving capacity of 3 million tons per year was primarily for construction of wharf, terminal, and transportation pipelines.
- Hainan Refining and Chemical expansion project: This project consists of a 5,000,000 Total Petroleum Hydrocarbons (TPA) refinery project and 1,000,000 TPA ethylene project, among which the second set of high-efficiency and environment-friendly aromatics project started in August 2017, and is expected to be put into operation in June 2019.
- Zhongke integrated refining and chemical project: This project mainly consists of a 10,000,000 TPA refinery project, 800,000 TPA ethylene unit, 300,000-ton capacity jetty, and relevant utilities project. The mechanical completion is expected to be achieved in June 2020.
- Zhenhai Refining & Chemical expansion project: This project consists of 15,000,000 TPA refinery project and 1,200,000 TPA ethylene project. The project was approved in June 2018, ethylene and relevant projects started at the end of October 2018, and are expected to be put into operation in 2021.
- E-An-Cang gas pipeline project: The first phase of E-An-Cang gas pipeline project mainly consists of the main pipeline from Luquan to Cangzhou and two branch pipelines Puyang and Baoding. The total length of the pipeline is 736 kilometers, with a designed transmission capacity of 9 billion cubic meters per year. It is expected to be completed and put into operation in December 2019.
- Wen 23 gas storage project: The first phase of Wen 23 gas storage project mainly consists of the construction of injection and production wells and surface facilities with a storage capacity of 8.431 billion cubic meters. The gas storage is expected to be officially put into operation in July 2020.
- Xinqi pipeline project: The main project of the first phase of Xinqi pipeline project was the construction of the pipeline from Qianjiang to Shaoguan. The total length of the pipeline is 839.5 kilometers, with a designed transmission capacity of 6 billion cubic meters per year. It is expected to be completed and put into operation in July 2020.
Oilfields: SINOPEC Zhongyuan Oilfield Company, SINOPEC Henan Oilfield Branch Company, SINOPEC Jianghan Oilfield Company, SINOPEC Jiangsu Oilfield Company, Sinopec Southwest Oil & Gas Company, SINOPEC Shanghai Offshore Petroleum Company, Sinopec Northwest Oil Field Company, SINOPEC Southwest Oil& Gas Company, SINOPEC East China Company, Sinopec North China E&P Company, SINOPEC Northeast Oil and Gas Company, SINOPEC Pipeline Storage & Transportation Company, SINOPEC Northeast Company, SINOPEC Gas Company, SINOPEC Exploration Southern Company, and SINOPEC Pipeline Transport & Storage Company.
Refineries & Petrochemicals: SINOPEC Beijing Yanshan Company, SINOPEC Qilu Company, SINOPEC Shanghai Gaoqiao Company, SINOPEC Jinling Company, SINOPEC Maoming Company, SINOPEC Tianjin Company, SINOPEC Baling Company, SINOPEC Changling Company, SINOPEC Zhenhai Refining & Chemical Company, SINOPEC Guangzhou Company, SINOPEC Anqing Company, SINOPEC Luoyang Company, SINOPEC Jingmen Company, SINOPEC Jiujiang Company, SINOPEC Hubei Chemical Fertilizer Company, SINOPEC Jinan Company, SINOPEC Wuhan Company, SINOPEC Zhongyuan Petrochemical Corp. Ltd., SINOPEC Qingdao Refining Corp. Ltd., SINOPEC Cangzhou Company, SINOPEC Lubricant Company, SINOPEC Beihai Company, SINOPEC Xi’an Company, SINOPEC Tahe Company, SINOPEC Catalyst Company, SINOPEC Hainan Petrochemical Co., Ltd., SINOPEC Qingdao Petrochemical Co. Ltd., SINOPEC Zhanjiang Dongxing Petrochemical Company Limited, SINOPEC Shijiazhuang Refining & Chemical Company, Sinopec Asphalt Sales Branch Company, Sinopec Shanghai Asphalt Sales Branch Company, Sinopec Shanghai Petrochemical Co., Ltd., Sinopec Yizheng Chemical Fibre Company Limited, Sinopec Yangzi Petrochemical Company Limited, Sinopec Chemical Commercial Holding Company Limited, Sinopec Zhongyuan Petrochemical Corp. Ltd., SINOPEC Catalyst Company, Profile of Fujian Petrochemical Company Limited, and Sinopec Nanjing Chemical Industrial Corporation.
Oil Products Sales: SINOPEC Beijing Oil Products Company, SINOPEC Tianjin Oil Products Company, SINOPEC Hebei Oil Products Company, SINOPEC Shanxi Oil Products Company, SINOPEC Shanghai Oil Products Company, SINOPEC Jiangsu Oil Products Company, SINOPEC Zhejiang Oil Products Company, SINOPEC Anhui Oil Products Company, SINOPEC Fujian Oil Products Company, SINOPEC Jiangxi Oil Products Company, SINOPEC Shandong Oil Products Company, SINOPEC Henan Oil Products Company, SINOPEC Hubei Oil Products Company, SINOPEC Hunan Oil Products Company, SINOPEC Guangdong Oil Products Company, SINOPEC Guangxi Oil Products Company, SINOPEC Hainan Oil Products Company, SINOPEC Guizhou Oil Products Company, SINOPEC Yunnan Oil Products Company, Sinopec Sichuan Petroleum Company, Sinopec Liaoning Oil Products Company, Sinopec Chongqing Petroleum Company, Sinopec Shaanxi oil products Company, SINOPEC Inner Mongolian Oil Products Company, SINOPEC Xinjiang Oil Products Company, SINOPEC Jilin Oil Products Company, Sinopec Heilongjiang Oil Products Company, Sinopec Qinghai Oil Products Company, Sinopec Gansu oil products company, SINOPEC Ningxia Oil Products Company, Sinopec (Hong Kong) Limited, SINOPEC Fuel Oil Sales Corporation Limited, and Sinopec Chemical Sales Company.
Wholly-owned & Controlling Subsidiaries: SINOPEC Shanghai Petrochemical Co., Ltd., Sinopec (Hong Kong) Limited, SINOPEC Yangzi Petrochemical Co., Ltd., Sinopec Yizheng Chemical Fibre Company Limited, Fujian Petrochemical Company Ltd., China International United Petroleum & Chemicals Co., Ltd., Sinopec Marketing Co., Ltd., China Petrochemical Technology Company, Ltd., China Petrochemical International Co., Ltd. (SINOPEC Intl Co., Ltd.), and SINOPEC Fuel Oil Sales Corporation Limited.
Research Institutions: SINOPEC Exploration & Production Research Institute, SINOPEC Research Institute of Petroleum Processing, SINOPEC Beijing Research Institute of Chemical Industry, SINOPEC Fushun Research Institute of Petroleum and Petrochemicals, SINOPEC Shanghai Research Institute of Petrochemical Technology, SINOPEC Qingdao Safety Engineering Institute, SINOPEC Research Institute of Petroleum Engineering, and Sinopec Geophysical Research Institute.
Others: SINOPEC Fujian Refining & Chemical Co., Ltd., Sinopec SenMei (Fujian) Petroleum Company Limited, Shanghai Secco Petrochemical Co., Ltd., Petro-CyberWorks Information Technology Co., Ltd., and BASF-YPC Company Limited.
- Sinopec is the second-largest Chinese national oil company after PetroChina (CNPC)
- The company’s overall operating income increased from US$ 354,028.9 Million in 2017 to US$ 433,676.9 Million in 2018, which was an incline of 18.4%
- The company’s overall operating profit increased from US$ 13,044.8 Million in 2017 to US$ 15,221.1 Million in 2018, which was an incline of 16.7%