Sinopec Data Show Increases in Oil, Gas Production in 2007

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (Sinopec) (Beijing) recently released data that show that the oil refiner and dealer increased its production last year and that it will continue to grow. The data, which haven't been audited yet, show that the company produced 292 million barrels of crude oil, an increase of 2.27% compared with 2006, and 8 million cubic meters of natural gas, up 10.3%. Sinopec also processed 156 million tons of crude oil, up 6.33%.

With the 156 million tons of crude oil processed, the company produced 24.69 million tons of gasoline (up 7.35%), 60.08 million tons of diesel (up 3.84%), 8.32 million tons of kerosene (up 31.02%) and 23.47 million tons of naphtha (up 3.21%).

In terms of petrochemicals, the company produced 6.53 million tons of ethanol (up 6.02%), 9.66 million tons of synthetic resin (up 12.08%), 800,000 tons of synthetic rubber (up 19.76%), 1.42 million tons of synthetic fibers (down 5.66%) and 1.57 million tons of urea (down 2.73%).

For sales, Sinopec sold 119 million tons of processed oil (up 6.9%) of which 76.62 million tons were retailed (up 6.18%).

With the Puguang gas field and the Qingdao refinery to be running this year, Sinopec's production of natural gas and refined oil will greatly increase in the near future, Sinopec said.

The Puguang gasfield, the biggest in China in terms of size and abundance, will be producing from nine of its wells at the end of 2008 as planned, with a dozen wells to join in following year. The gas field, in central Sichuan Province, has a proven reserve of 356 billion cubic meters and can produce at least two billion cubic meters every year.

The Qingdao refinery, currently under a trial run until March, was designed to process 10 million tons of crude oil from the Middle East every year. Along with three other large refineries under construction, Sinopec's annual ethanol production will reach 10 million tons in 2010.

Facing a drastic oil shortage at the second half of 2007, Sinopec ordered its refineries to work at full speed and imported nearly half a million tons of processed oil last year.

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