Sinopec: Import Of Oil From Iran For Normal Trade Transactions Actively Promote Sales Spin-off Listing
- Sep 10, 2018 -

"Sinopec is an integrated company with the world's largest refining capacity and processing volume and imports more than 80 % of crude oil. Part of the early refinery equipment was designed in accordance with Iranian crude oil, and the Group has a long-term cooperative relationship and procurement contract with Iran, which is a normal trade transaction and is in line with normal commercial principles. Sinopec's vice president and board secretary, Huangwensheng, said frankly at a press conference in Hong Kong on August 27.

He said frankly: "If stop importing oil from Iranian, Sinopec will sufferr a great impact on commercial interests. Therefore, the company is very concerned about the progress of the United States 'resumption of sanctions against Iran and has communicated with relevant parties to avoid potential risks. "
In 2004, Sinopec, a subsidiary of Sinopec Group, signed a memorandum of understanding with the relevant departments of the Iranian government to cooperate in the development of the Yadavaran Oilfield.  At the end of 2007, Sinopec and Iran formally signed a cooperation agreement for the development of the Yadawaran oil field in the form of BOD(Build, Opate and Deliver), and the investment in the project was as high as 2 billion U.S. dollars.

As the Ministry of Commerce showed, according to the requirements of the memorandum of understanding signed by Sinopec and the Iranian government at that time to cooperate in the development of the Yadavaran oil field, Sinopec must import 10 million cubic meters of liquefied gas from Iran each year. 25 years, with a total value of about 100 billion U.S. dollars.

He continued: "Sinopec has been diversified purchasing crude oil globally.  At present, the company has long-term procurement contracts with the United States and related transactions are still normal. "

Natural gas production will reach 33 billion cubic meters by 2020
Oil prices rebounded sharply, directly driving Sinopec's performance. By the end of June, Sinopec's net profit had reached 41.6 billion yuan, up 53.6 % from a year earlier, and operating profits had risen 51.3 % to 67.9 billion yuan from a year earlier, according to financial reports.
In the first half of this year, international crude oil prices showed an upward trend of shocks. The average spot price of Pullman Brent crude oil was US$ 70.55 / barrel, an increase of 36.2 % year-on-year. Wangdehua, the group's chief financial officer, said crude oil prices were expected to stabilize at $70-80 per barrel in the second half of the year without an emergency and that the price increase would have slowed.
According to figures from the National development and reform Commission, consumption of refined oil in the first half of this year rose 5.7 % year-on-year, with gasoline growing 4.6 % year-on-year, kerosene 10.9 % year-on-year and diesel 5.6 % year-on-year. Domestic gas demand has accelerated, with apparent consumption up 17.5 % year-on-year.
"The reserves and production of Sinopec are about 70-80 % in China, so oil and gas development will be based in China and crude oil production is expected to be stable in the next three years. The natural gas business has a lot of room for development and is expected to reach 33 billion cubic meters by 2020. "Huangwensheng said.