Sinopec’s largest shareholder-China Petroleum & Chemical Corporation is a super-large petroleum and petrochemical enterprise group reorganized and established in 1998 on the basis of the original Sinopec Corporation. It is a state-owned company funded by the state, an institution authorized by the state to invest, and the state Holding company.
Company Name: China Petroleum & Chemical Corporation
English Name: Sinopec Group
Number of Employees: 619151 people (2019)
Industry: Petrochemical
Annual Turnover: $ 414.6 billion (2019)
Founded: September 14, 1983
Business Scope: petroleum trade, petroleum development and chemical industry, etc.
Company Type: Central Enterprise
Development Path
On February 19, 1983, the CPC Central Committee and the State Council issued a “Notice” and decided to establish the China Petroleum and Chemical Corporation. On July 12, the founding meeting of Sinopec Corporation was held in the Great Hall of the People.
On January 19, 1984, the State approved the Petrochemical Corporation to construct 7 large-scale projects, namely Daqing, Yangzi, Qilu, 390,000 tons / year ethylene, Zhenhai, Ningxia, Urumqi, 30 tons / year synthetic ammonia, and 520,000 tons / year urea and Phase II of Shanghai Petrochemical Plant.
On May 14, 1986, the Central Organization Department notified that the Central Committee decided that the Petrochemical Corporation would no longer establish a board of directors and implemented a manager responsibility system.
On February 6, 1988, the Office of the Premier of the State Council studied and determined that the Petrochemical Corporation was still under the direct control of the State Council.
On January 8, 1990, China’s first self-developed new ethylene cracking furnace (Northern furnace) with an annual output of 250,000 tons passed the state-level appraisal and acceptance.
On September 11, 1991, the Sinopec Corporation and the China Science and Technology Association jointly held the 91 International Petroleum Refining and Petrochemical Academic Conference and Exhibition in Beijing.
On January 11, 1992, the State Council approved the 300,000-ton / year ethylene reconstruction and expansion project of Beijing Yanshan Petrochemical Company.
On February 18, 1993, China International Petroleum and Chemical Corporation, a joint venture between Petrochemical Corporation and China National Chemical Corporation, was opened. On July 26, Shanghai Petrochemical’s H shares were listed on the Hong Kong Stock Exchange. On September 28, the first 800,000-ton / year hydrogenation unit independently researched, designed, and manufactured in China was completed at the Zhenhai Petrochemical Plant. On November 8, Shanghai Petrochemical A shares were listed on the Shanghai Stock Exchange.
On January 7, 1994, the State Planning Commission approved the establishment of the National Engineering Research Center for Refining Processes and Catalysts on the basis of the Petrochemical Research Institute. On November 9, Yangzi Petrochemical Co., Ltd. established a joint venture with BASF in Germany to establish BASF Ethylene Series Co., Ltd., which started construction of 120,000 tons / year of styrene and 100,000 tons / year of polystyrene.
On November 28, 1995, “Sinopec” registered trademark (Chinese and English + Chaoyang pattern), “Torch” service mark (Sinopec).
On July 10, 1996, China’s first set of 10,000-ton-per-year melt-polymerized styrene-butadiene rubber device was successfully put into production at Beijing Yanshan Petrochemical Company, and its physical and mechanical properties reached the level of similar foreign products.
On October 13, 1997, the signing ceremony of the joint feasibility study agreement for the Fujian Refining and Chemical Integration Project was held at the Great Hall of the People.
On May 26, 1998, the signing ceremony of the transfer agreement between China National Petroleum Corporation and China Petroleum and Chemical Corporation was held in Beijing. 12 oilfields and oil transportation enterprises including Shengli Petroleum Administration Bureau, Zhongyuan Petroleum Exploration Bureau, Jianghan Petroleum Administration Bureau, Henan Petroleum Exploration Bureau, Jiangsu Petroleum Exploration Bureau, and East China Petroleum Transfer Bureau are included in Petrochemical Corporation, Daqing Petrochemical Plant, Fushun Petrochemical Fourteen refining and chemical companies, including the Company, Jinzhou Petrochemical Company, Dalian Petrochemical Company, Lanzhou Petrochemical Company, and Urumqi Petrochemical General Plant, are included in the Petroleum and Natural Gas Corporation. From June 13 to September 29, Beijing, Tianjin, Shandong, Jiangsu, Zhejiang, Guangdong, Hunan, Hubei and other 18 provinces (autonomous regions and municipalities), as well as Qingdao, Ningbo, Xiamen, Shenzhen and other 4 cities with separate plans Has been assigned to the Petrochemical Corporation. On July 27, the inaugural meeting of China Petroleum and Chemical Corporation and China National Petroleum Corporation was held in the Great Hall of the People.
On February 28, 2000, China Petroleum & Chemical Corporation, which was exclusively launched by Petrochemical Corporation, was established. On March 30, according to the regulations of the State Council, China Xinxing Petroleum Co., Ltd. was integrated into the Petrochemical Corporation as a whole. From October 9th to 12th, Sinopec made an initial public offering of 16.78 billion H shares overseas, raising 3.46 billion U.S. dollars. On the 18th and 19th of the same month, Sinopec’s H shares were listed in Hong Kong, New York and London, respectively.
On January 22, 2001, Sinopec International Petroleum Exploration and Development Corporation was established. From July 16th to 19th, Sinopec Corp. publicly issued 2.8 billion A shares in China and raised 10.8 billion yuan. On August 8, Sinopec’s A shares were listed on the Shanghai Stock Exchange.
On February 28, 2002, the signing ceremony for the establishment of Sinopec Yingke Information Technology Co., Ltd. by Sinopec and PCCW was held in Beijing. On April 11, Sinopec Southern Exploration and Development Branch was established. On May 29, Sinopec Lubricant Branch was reorganized and established.
On August 26, 2004, Sinopec, ExxonMobil, Saudi Aramco, and Fujian Refining & Chemical signed a preliminary design agreement for the expansion of the Fujian Refining and Chemical Integration Project at the headquarters. Fujian Refined Oil Marketing Joint Venture Company jointly reported scientific research agreement and petroleum product sales agreement. On September 22, the inauguration ceremony of Sinopec Shanghai Asphalt Sales Branch was held at Shanghai Xingguo Hotel.
On June 22, 2005, the foundation laying ceremony for the Qingdao Refining Project was held in Qingdao. On June 29, Shanghai Secco’s 900,000 t / y ethylene project was officially put into operation in Shanghai.
On September 20, 2006, the Zhenhai National Petroleum Strategic Reserve was completed and put into operation. On October 10, the share reform of the A-share market was implemented. On October 11, Hainan Refining & Chemical Co., Ltd. increased its registered capital by means of capital injection. After the capital increase was completed, it held a 17% equity interest in Hainan Refining & Chemical Co., Ltd. On November 6, the foundation stone laying ceremony of Sinopec Zhenhai Refinery’s 1 million tons / year ethylene project was held in Zhenhai Refinery. On November 18, Sinopec Maoming’s 1 million tons / year ethylene expansion project was put into production.
On April 9, 2007, the State Council formally approved the “Sichuan-to-East Gas Transmission” project and was included in the national “11th Five-Year Plan” major project. On December 31, five oil refining companies including Sinopec Zhenjiang Dongxing were acquired.
On February 20, 2008, Sinopec issued 30 billion convertible bonds in separate transactions in China.
On August 18, 2009, Sinopec successfully acquired Addax, an independent oil company based in Switzerland. On November 11, the Fujian Refining and Ethylene Integration Project was officially put into commercial operation. On November 23, Sinopec officially promulgated the “Company Culture Outline of China Petrochemical Corporation”. On December 28, the foundation laying ceremony for the construction of the Sinopec Science and Technology Research Center was held in Shahe Satellite City, Changping District, Beijing.
On March 23, 2010, the signing ceremony of strategic partners of China’s space industry was held in Beijing. Sinopec is the first strategic partner of China’s space industry. On March 29, Sinopec announced that the national “Eleventh Five-Year Plan” major project, the Sichuan-East Gas Transmission Project, was completed and put into operation. The Sichuan-East China Gas Transmission Project has a total length of more than 1,700 kilometers, with a design capacity of 12 billion cubic meters of purified natural gas, and a total investment of 62.676 billion yuan. On April 20, Zhenhai Refining & Chemical’s 1 million tons / year ethylene project leader, ethylene cracker, produced qualified ethylene, achieving a successful start-up. On May 11, the Tianjin million-ton ethylene and ten-million-ton refining integration project was officially put into commercial operation. On the morning of June 5, the inauguration ceremony of Sinopec Fuel Oil Company was held at the Beijing National Convention Center. On December 8, Sinopec contributed US $ 7 million to support Beijing’s successful acquisition of the 2015 World Championships and become the official IAAF partner.
On February 2, 2011, Sinopec acquired OXY Argentina’s assets and successfully delivered. On April 23, Sinopec’s first shale oil horizontal well, the Bisha HF-1 well, was formally drilled.
On May 7th, Maoba 503-2H, the first high-sulphur open-hole horizontal well in China, started to blow out. The 12mm gas nozzle separator is on demand, with a daily output of 692,000 cubic meters of natural gas and an unobstructed flow of 6.277 million cubic meters of natural gas per day. On May 13, Sinopec and the Dutch DSM Group jointly established a 100,000-ton / year unsaturated resin factory in Nanjing Chemical Industry North Park. On July 13, Sinopec Sichuan Vinylon Plant became China’s number one and world’s second largest producer in the field of vinyl acetate and polyvinyl alcohol production. On July 15, Sinopec’s first shale gas horizontal well, Jianye HF-1 Well, was successfully drilled and moved to the completion phase. On July 28, the foundation stone laying ceremony of Sinopec Singapore Lubricating Grease Project was held in Singapore. On July 28th, the 24th US Hart Energy Awards was announced, and Sinopec won the international oil refinery company award. On August 3, Sinopec proposed the development goal of “building a world advanced energy and chemical company”. On August 9, Sinopec and Australian Pacific Liquefied Natural Gas Co., Ltd. (APLNG) completed the delivery of the 15% AOLNG subscription project.
On January 3, 2012, Sinopec signed an agreement with the United States Devon Energy Company to acquire one-third of the company’s five shale oil and gas assets in the United States. On January 15th, Sinopec entered into a joint venture agreement with the Saudi Arabian Petroleum Corporation and Saudi Basic Company in Riyadh’s Yanbu Refinery and Tianjin Polycarbonate Project. On March 28, Sinopec acquired 30% of Galp’s Brazilian assets and completed the project in Brazil and the Netherlands at the same time. On April 3, the 3 billion cubic meter natural gas capacity construction project in the Dawan block of the Puguang gas field was successfully put into operation, becoming an important resource replacement position for the Sichuan-East Gas Transmission Project. On April 13, the State-owned Assets Supervision and Administration Commission of the State Council convened a working meeting of the board of directors for the construction of group companies at the headquarters of Sinopec Corp., and announced the establishment of the board of directors of Sinopec Corp. The board of directors consists of 9 directors, including 5 foreign directors and 1 employee director. On May 10, Sinopec successfully issued US $ 3 billion in international bonds. This is the first time that the group has entered the international bond market for direct financing. On June 28, Sinopec Oil Refining Sales Co., Ltd. was established in Shanghai. On July 12, Sinopec and Australian Pacific Liquefied Natural Gas Co., Ltd. (APLNG) completed the completion of a 10% stake increase in APLNG. On July 26, Sinopec Tahe Refining and Chemical Co., Ltd. and Xinjiang Luyou Petrochemical Co., Ltd. were unveiled and established. On September 3, the unveiling ceremony of Sinopec Refining Engineering (Group) Co., Ltd. was held at the headquarters of Sinopec. On September 28, Sinopec Great Wall Energy Chemical Co., Ltd. was unveiled, marking that Sinopec’s coal chemical business has entered a new stage of rapid advancement and professional development. On November 19, Sinopec reached an agreement with Total of France to acquire the entire 20% interest in the OML138 block occupied by the company. On November 30th, the 14th China Patent Awards Presentation Conference was held in Beijing. Sinopec won a total of 5 awards, including “Made in Benzene and Ethylene”
“Ethylbenzene alkylation method” and “a caprolactam hydrorefining method” won the Chinese Patent Gold Award. On December 18, Sinopec acquired the 49% stake in the British subsidiary of Canada’s Talisman Energy Company and formally settled it. December On the 27th, Zhenhai Refining & Chemical’s 1 million tons / year ethylene project won the National Gold Award for High-quality Engineering, achieving a “zero” breakthrough in the National Excellent Gold Award in the history of China ’s petrochemical engineering construction. On December 27, the first toluene methyl alcohol methylation industry in China The plant successfully completed industrial operation tests at Yangzi Petrochemical, marking that Sinopec became the first company in the world to have proprietary technology for methylation of toluene and methanol. On December 28, Sinopec Petroleum Engineering Technology Service Co., Ltd. was unveiled in Beijing.
On January 12, 2014, China Petroleum & Chemical Corporation issued an announcement explaining the reasons for the leakage and explosion of Sinopec’s Donghuang oil pipeline in Qingdao, China on November 22, 2013, and the reasons for punishment and compensation. The announcement pointed out that the accident caused direct economic losses of 757.2 million yuan (RMB, the same below), and Sinopec will bear its corresponding compensation liability. It is understood that the accident killed 62 people and injured 136. Sinopec has adopted November 22 every year as a warning day for Sinopec’s safety in production to commemorate the dead and warn future generations.
On February 19, 2014, the board of directors of Sinopec passed the “Proposal for Restructuring Sinopec’s Sales Business, Introducing Social and Private Capital to Realize Mixed Operation”, and agreed to audit the existing assets and liabilities of Sinopec’s oil product sales business On the basis of the evaluation, the company will reorganize, and at the same time, it will introduce social and private capital to participate in the shareholding and realize mixed ownership operation.
On August 26, 2014, Sinopec Sales Co., Ltd. and Tencent signed a business framework cooperation agreement.
On February 6, 2015, the Central Sixth Inspection Team feedback the special inspections to China Petroleum and Chemical Corporation. The inspection team pointed out that Sinopec’s problems are mainly: the management and management personnel of different levels and different sections use the resources and platforms they have to carry out benefits transmission and exchange in engineering construction, material supply, oil sales, joint venture cooperation, and overseas operations; Of relatives and children of business leaders who run commercial enterprises in violation of regulations and make profits by contracting Sinopec’s business and conducting related-party transactions.
On September 18, 2015, the Global Charter for Responsible Care was signed to strengthen the chemical management system, protect people and the natural environment, and urge all parties to make solemn commitments to reach sustainable development solutions.
In August 2016, China Petroleum & Chemical Corporation ranked third among the 2016 Top 500 Chinese Enterprises.
In February 2017, Brand Finance released the 2017 Global Top 500 Brand List, and Sinopec ranked 32nd.
In June 2017, “BrandZ Top 100 Most Valuable Global Brands 2017” was announced, and China Petroleum & Chemical Corporation ranked 85th.
On July 12, 2017, China Petroleum & Chemical Corporation was awarded Grade A of the 2016 SASAC’s performance evaluation.
In September 2017, China Petroleum & Chemical Corporation ranked second in the 2017 Top 500 Chinese Enterprises.
On May 9, 2018, the “2018 Top 100 Chinese Brand Value List” was released, and Sinopec ranked fifth.
On October 11, 2018, Forbes released the list of the world’s best employers in 2018, and Sinopec ranked 85th.
In the 2018 World Top 500 Brand Ranking, Sinopec ranked 141th.
In July 2019, approved by the China Banking and Insurance Regulatory Commission, China Insurance Protection Fund Co., Ltd., China Petroleum and Chemical Corporation, and Shanghai Automotive Industry (Group) Corporation jointly funded the establishment of the National Insurance Group Co., Ltd. (hereinafter referred to as the National Insurance Group). The registered capital is 20.36 billion yuan.
Business
Oil and gas exploration and development
As of the end of 2011, Sinopec was the second largest oil and gas producer in China. The company’s oil and gas exploration and development blocks are located in eastern, western and southern China. As of December 31, 2011, it had 297 blocks of exploration licenses, with a total exploration area of 966,800 square kilometers, holding 192 blocks of mining licenses, and a total mining area of 20,300 square kilometers.
In 2011, the company added a total of 410.73 million barrels of oil equivalent of recoverable oil and gas reserves, of which 280.92 million barrels of newly added crude oil and 778.919 billion cubic feet of new natural gas. A total of 321.73 million barrels of crude oil and 516.94 billion cubic feet of natural gas were produced throughout the year. Shengli Oilfield is the company’s most important crude oil production base. In 2011, it produced a total of 194.11 million barrels of crude oil.
As of December 31, 2011, the company’s remaining recoverable oil and gas reserves were 3966.21 million barrels of oil equivalent, of which 2848.10 million barrels of crude oil and 678.6680 billion cubic feet of natural gas.
At the end of 2011, the company launched the Fifth Congress of Shengli Oilfield, Tarim Basin, Ordos Basin, Sichuan Basin and unconventional oil and gas reserves.
On January 6, 2016, Sinopec Group announced that its “Four Wells” deployed in the Beibu Gulf waters had successfully completed two oil-bearing formation tests on January 5 and had obtained high-yield gas streams with a daily output of more than 1,000 tons of oil and gas. Among them, the first layer of the target section was tested and obtained 1,458 cubic meters of self-injected high-quality crude oil (approximately 1264 tons) and 71,800 cubic meters of natural gas. The second layer was tested and produced 1,349 cubic meters of self-injected high-quality crude oil (approximately equal to 1184 tons) and 76,000 cubic meters of natural gas, which is the highest record for a single well in Sinopec’s offshore oil and gas exploration. It is also a rare high-yield test exploration well in China in the past ten years, bringing new hope for future exploration breakthroughs in Beibu Gulf waters.
Refining production and operation
Oil refining
As of the end of 2011, Sinopec is China ’s largest petroleum refiner and also China ’s largest producer of petroleum products. Its petroleum refining capacity ranks second in the world. Its main products are gasoline, kerosene, diesel, and lubricants. The three refining and chemical enterprise clusters are mainly distributed in the most active and developed areas of China’s economy, such as the southeast coast, the middle and lower reaches of the Yangtze River, and North China. It has an advantageous geographical location, convenient transportation, and strong market demand, providing a steady stream of power for China’s economic development. At the end of 2011, Sinopec’s primary processing capacity reached 247 million tons.
In 2013, the company processed a total of 234 million tons of crude oil throughout the year, an increase of 4.8%; it produced 141 million tons of refined oil products, an increase of 5.2%; and it produced 38.23 million tons of chemical light oil, an increase of 4.9%.
By optimizing production schemes, adjusting process operations, increasing production of high-value products such as gasoline, jet coal, and asphalt, and reducing production of low-value-added products such as diesel, commercial heavy oil, and petroleum coke, significant results have been achieved. The production of gasoline was 45.94 million tons, an increase of 11.8%, and the over-processing volume increased by 7 percentage points. The production of aviation coal was 17.43 million tons, an increase of 16.1%, and the over-processing volume increased by 11.4 percentage points. The production of asphalt was 7.72 million tons, an increase of 24.0%, and the over-processing volume increased by 19.1 percentage points. The production of diesel was 77.48 million tons, a decrease of 0.4%, which was 5.2 percentage points lower than the increase in processing volume. The production of petroleum coke was 13.8 million tons, an increase of 1.8%, which was 3 percentage points lower than the increase in processing volume.
On April 24, 2013, Sinopec’s No. 1 bio-air jet was successfully tested at Shanghai Hongqiao Airport. On February 12, 2014, the Civil Aviation Administration of China formally issued to China Petrochemical the No. 1 Biological Aviation Coal Technical Standard Regulation Project Approval Letter (CTSOA). Sinopec’s No. 1 bio-air coal has obtained airworthiness permits. This is a new development and breakthrough in China’s bio-air coal industry, making China the fourth country to have its own self-developed bio-air coal technology after the United States, France, and Finland. Sinopec became the first domestic company to have independent research and development and production technology for biological aviation coal.
Chemical production and operation
As of the end of 2011, Sinopec is China’s largest producer and distributor of petrochemical products. Petrochemical production plants are located in economically and market-developed regions such as eastern, central and southern China. , Synthetic fiber raw materials and polymers, synthetic fibers, synthetic rubber and fertilizers. The company’s petrochemical production and the company’s refining business are integrated upstream and downstream. Chemical raw materials (such as naphtha) are mainly provided by the company’s refining production companies. Most of the company’s petrochemical products are sold in the Chinese domestic market.
As of the end of 2011, the company’s main chemical product capacity (including new construction and expansion and reconstruction units of the year), output and market share are as follows:
There are 13 ethylene production enterprises, including 4 joint ventures. At the end of the year, the production capacity was 9.425 million tons, and the actual ethylene production was 9.894 million tons. There are 30 synthetic resin production enterprises, with a production capacity of 12.98886 million tons at the end of the year. The output of that year was 13.652 million tons. The domestic market share of synthetic resin was 22.05%. There were 5 synthetic rubber production enterprises with a device production capacity of 930,000 tons. Tons, the domestic market share is 25.1%. There are 15 synthetic fiber monomer and polymer production enterprises, with a device production capacity of 9.284 million tons. In the same year, it produced 9.38 million tons of synthetic fiber raw materials and polymers, with a domestic market share of 20.33%. There are 8 synthetic fiber production enterprises. The production capacity of polyester, acrylic, nylon, and polypropylene fiber equipment is 1,536,400 tons. In the year, the total production of synthetic fibers was 1.388 million tons, and the domestic market share was 4.76%.
Product Marketing Services
Natural Gas
In 2013, the company sold 16.84 billion cubic meters of natural gas for the whole year, an increase of 9.4%; and sold 1 billion cubic meters of natural gas for vehicles, an increase of 67.5%.
Refined Oil
In 2013, the company achieved 180 million tons of refined oil business operations, an increase of 4.0%; domestic product oil operations of 165 million tons, an increase of 3.8%, of which 114 million tons of retail sales, 30,500 gas stations; (Hong Kong region) The operating volume of refined oil products was 14.57 million tons, an increase of 2.9%.
As of the end of 2013, the company maintained 30,536 Sinopec brand gas stations, a decrease of 300 from the end of the previous year; of which, 30,523 gas stations of its own, a decrease of 300 from the end of the previous year. The refueling volume at a single station increased by 5.97%.
Non-oil Products
In 2013, the company’s non-oil products operating income reached 13.35 billion yuan, an increase of 21.4%.
Continuing to focus on easy-to-use convenience stores, combining normal promotions with themed marketing to enhance the attractiveness of “easy-to-use”, the store entry rate for the year reached 4.1%, an increase of 1.9 percentage points. Feature local products; vigorously promote independent brand products; promote diesel vehicle exhaust fluids to reduce diesel vehicle exhaust emissions; accelerate the development and construction of car wash outlets, and build and rebuild 300 car wash outlets with a unified image.
Fuel Oil
In 2013, the company’s annual operating volume was 20.27 million tons, a slight increase year-on-year.
Other refining products
The unified sales of liquefied gas was implemented smoothly, and the annual industrial gas ratio reached 37.4%, an increase of 11.7 percentage points.
Asphalt market share remains the leading domestic market. Differentiated and high-end products such as high-speed iron emulsified asphalt, hard asphalt, warm-mixed asphalt, and modified asphalt continue to expand. The annual sales of asphalt increased by 21.5%.
In the whole year, the total operating volume of lubricants was 2.036 million tons, an increase of 28%; the third-party trade in base oils was 650,000 tons; the sales volume of industrial oil was 240,000 tons, an increase of 12%. The lubricating oil market has achieved results, and breakthroughs have been made in application cooperation in aerospace, aviation, ocean, high-speed rail and other high-end fields. 68 new customers and more than 2,300 large customers have been added.
Chemical Products
In 2013, the company completed a total of 58.23 million tons of chemical products throughout the year, an increase of 3.88 million tons and an increase of 7.1%.
Catalyst
In 2013, the company sold 147,000 tons of various catalysts throughout the year. In the face of fierce market competition, timely adjustments and optimization of marketing strategies to improve market control capabilities, domestic sales reached a new high, reaching 130,000 tons, an increase of 11.1%.
Strategic Cooperation
On July 20, 2018, the signing ceremony of the official oil and gas partners of the Beijing Winter Olympics and Winter Paralympics in 2022 was held in the Beijing Olympic Winter Games Organizing Committee Office Park. China National Petroleum Corporation and China National Petroleum Corporation became the official oil and gas partners of the Beijing Winter Olympics.