Based on the judgment of oil recovery, China petroleum and chemical corporation (sinopec) began to increase scale of investment in the New Year. The listed company of China petroleum and chemical corporation co., LTD. (600028. SH / 600028 HK, hereinafter referred to as sinopec) vice President JiaoFang was held on March 27, the performance of the conference, said: "since the second half of 2014, oil prices downward, we expect oil prices has been largely to the bottom, slowly began to rebound this year. With oil prices rising, the upstream business performance will be improved significantly." Since January this year, he said, China petrochemical part of the oil and gas fields have to profit.
Sinopec 2016 results show that its operating income of 1.93 trillion yuan, fell 4.4% year on year; Net profit of 46.7 billion yuan, up 43.6% year-on-year, net profit increased dramatically, largely due to earnings upgrades refining plates, and selling ZengLi sichuan to east gas pipeline assets.
At the beginning of 2016, international oil prices had pierced the lows of $30 a barrel. China petrochemical capital spending totaled 76.456 billion yuan, compared with the scale of 32%. But under the optimistic price expectations, sinopec in 2017 set a higher capital expenditure scale of up to 110.2 billion yuan, of which the upstream exploration and development investment is 50.5 billion yuan, 2016 yuan more than in 2016.
Focal founder, said this year's investment arrangement is based on the judgment about the price of oil is expected to price fluctuation range is 50 to 55 dollars/barrel. Investment will focus on the increasing exploration investment, the construction of crude oil production. He said: "the construction of crude oil production capacity, investment of 7.5 billion yuan last year, this year to reach 13 billion yuan, built 2 million tons of production capacity."
Sinopec international oil prices in 2017 the overall judgment is turbulence slow upward trend. Based on the analysis of OPEC limit production agreement at the end of 2016 to the impact of international oil prices, the focal founder, said their production after the deal, oil prices or faster response speed, but the recent and callback, there are two main reasons. One is within OPEC to complete the degree of their agreement, "in addition to Saudi Arabia to complete their production quotas, other members basically completed the 50% to 60%. Russia is only completed 30%". From January 2, oil and gas production in the United States to restore growth very fast, to some extent inhibited the rapid rebound in oil prices.
"But from the perspective of the determination of control OPEC oil price, we think that is the result of the game on both sides will slowly rising oil prices. Especially Saudi aramco are planning to market, to be listed, to create environment for a good price." He said.
In response to whether sinopec as investors to participate in Saudi aramco oil company in Hong Kong IPO, sinopec group chairman yu-pu wang said that the recent invite Saudi aramco oil company President amin nasser (AminNasser) to sinopec for a visit. "They think China is a huge market, for Saudi such major oil and gas producer, has a lot of appeal, also hope we can join their projects at the same time, we have to enter negotiations." He said both sides "talks more harmony", the next step will be according to the actual situation for further communication.
Focal founder, said during the development of natural gas is sinopec "much starker choices-and graver consequences-in" focus, shale gas is one of important part. Sinopec goal is built in fuling shale gas blocks at the end of 2017 production capacity of 10 billion cubic meters per year, has now completed construction of production capacity of 7 billion cubic meters per year. This year to promote the fuling area outside of the development, in the sichuan basin in 2016 found yongchuan blocks, horizon and fuling field, are dragon stream generation anddistribution as well as the group, this year will be to yongchuan blocks for commercial evaluation and test.
But China petrochemical production of domestic natural gas market encountered the bottleneck of air competition. Focal founder, sinopec in 2016, the original plan production gas 24.5 billion cubic meters, the actual production of 21.6 billion cubic meters. "Mainly market. Last year, China's imports of liquefied natural gas (LNG) and pipeline gas concentration released, production growth is faster than domestic gas demand growth, so reduce the part of the production of gas field."
Sinopec plans during the period of "much starker choices-and graver consequences-in" reached 40 billion cubic meters of natural gas production, the key is in the sichuan basin. According to the market changes and demand situation, sinopec set 24.8 billion cubic meters of natural gas production goals in 2017.
Sinopec management at the results also revealed the sinopec led the construction of xinjiang ZhunDong coal gas project progress. This is the current domestic approved coal gas project, the largest production capacity is expected to reach 36 billion cubic meters. The construction of "new" of guangdong and zhejiang in coal gas delivery pipe, the total length of 8300 km. But the project because of the environmental requirements and market factors such as lay aside.
Focal founder, sinopec will launch a new this year guangdong zhejiang first phase of the pipeline, which is to hubei qianjiang to guangdong shaoguan, purpose is for transferring puguang gas field in sichuan basin and fuling shale gas field production, open up new sales channels. The upstream engineering of coal gas, there has been no substantive progress, work is still in the early stage. The company will according to the national overall planning and deployment of coal gas, and related resources, environmental requirements