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95-407: The Shengli Oil Field Company is a subsidiary of Sinopec . The oil field also produces natural gas , and activities have recently expanded into shale oil , solar power , and wind power . The development of the oil fields was an important contributor to the economy of the local area, playing a role in the establishment of the city of Dongying in 1983. The activities of the oil industry have damaged

190-556: A "memorandum of agreement aimed at showing the parties' desire to develop exploration, exploitation, refining and export activities of oil products". Three onshore fields were to be explored. One of the three blocks, LT2000, is some 200 kilometers (120 mi) southeast of Gabon's economic hub, Port Gentil , which lies south of the capital, Libreville , on the Atlantic coast. The other two — DR200 and GT2000 - are around 100 kilometres (62 mi) northeast of Port Gentil, according to

285-521: A 30 percent stake in the Brazilian unit of Galp Energia SGPS SA which owns the rights to biggest discovered oil reserve in the western hemisphere since 1976. This brought the total investment of Chinese energy companies in foreign oil assets for the year to $ 16 billion. Sinopec reinvested in Indonesia in 2011 by partnering with Chevron on a deep water drilling operation. The project is located in

380-478: A 6.8% operating margin for the 2006 financial year. Profit was limited in part by government price controls on downstream petrochemical products. The National Development and Reform Commission sets gasoline and diesel prices and the Ministry of Finance collects windfall tax on upstream profits. At the beginning of 2006, Chinese retail gasoline and diesel sales were not profitable for Sinopec and sales were hurting

475-507: A 60% stake in AED Oil . AED was heavily indebted at the time of the purchase in part due to the Puffin oil fields producing less than expected. Sinopec took over operation of these fields after the sale. In 2009, Sinopec acquired Addax Petroleum Corp for $ 7.24 billion. This was the largest foreign purchase by a Chinese company. Addax was producing an average of 136,500 barrels per day. Addax

570-692: A NIO Power Swap Station 2.9 would be put into the Sinopec Chaoying Station in Beijing. Additionally, the partnership was to include cooperation between the two companies in new materials, smart EV technology, Battery-as-a-Service (BaaS), construction of recreational facilities, as well as the purchase of vehicles . In November 2021, U.S. producer Venture Global LNG signed a twenty-year contract with Sinopec to supply liquefied natural gas (LNG). In January 2022 they offered to re-sell LNG to take advantage of high Asian spot prices. Following

665-674: A billion barrels of crude reserves and a trillion cubic feet of natural gas reserve. However, the Syrian investments became significantly less valuable in 2012 when the Syrian civil war began. The turmoil forced Sinopec to stop regular operations in Syria. The company negotiated with several parties in Syria on multiple occasions in an attempt to restart operations. Sinopec also began investing in Australia in 2008 with its $ 594 million purchase of

760-498: A broader partnership deal. Sinopec operates the Jiujang Petrochemical Complex which was originally constructed in 1975 and has received a series of improvements over time. The refinery processes 8 million tonnes of crude oil per year. Xi Jinping visited the refinery, in 2023, when the company highlighted the importance of Socialism with Chinese characteristics and presented awards. Sinopec posted

855-586: A consortium whose partners also include China National Petroleum Corporation and Sudapet (the Sudanese state-owned oil company), among others. In 2005, Petrodar commenced production of oil in blocks 3 and 7 in South-east Sudan and transported them via its new pipeline. Petrodar's operations represent a major increase in overall Sudanese oil production. Sinopec is also looking into other companies such as ERHC Energy which has multiple oil block assets in

950-455: A continental shelf differs significantly from the geological definition. UNCLOS states that the shelf extends to the limit of the continental margin , but no less than 200 nmi (370 km; 230 mi) and no more than 350 nmi (650 km; 400 mi) from the baseline . Thus inhabited volcanic islands such as the Canaries , which have no actual continental shelf, nonetheless have

1045-473: A deal with Sinopec to revamp the Fujian oil refinery and triple its capacity to 240,000 barrels per day (38,000 m /d) by 2009. The Saudi Aramco investment is strategically aligned because Saudi Aramco produces a heavier crude oil which is not preferable for other Chinese refining facilities. Aramco, Exxon and Sinopec also signed contracts for a fuel marketing venture that will manage 750 service stations and

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1140-832: A distance where the depth of waters admitted of resource exploitation were claimed by the marine nations that signed the Convention on the Continental Shelf drawn up by the UN's International Law Commission in 1958. This was partly superseded by the 1982 United Nations Convention on the Law of the Sea (UNCLOS). The 1982 convention created the 200 nautical miles (370 km; 230 mi) exclusive economic zone, plus continental shelf rights for states with physical continental shelves that extend beyond that distance. The legal definition of

1235-684: A goal of building 5000 new EV charging stations by 2025 and plans to cooperate with BP on achieving that goal. These and other of Sinopec's environmental goals are aligned with the Fourteenth five-year plan . Sinopec has demonstrated a willingness, characteristic Chinese national oil companies, to invest in foreign, often risky, infrastructure. These firms work in concert with the Chinese state owned financial sector via direct low cost financing and indirect infrastructure agreements between foreign nations and Chinese banks. Several experts claim that

1330-710: A large impact on Chinese foreign policy and Chinese oil companies put a higher priority on mergers and acquisitions in the following years. According to the OECD, foreign oil ventures are an attractive investment for Chinese national oil companies because China is a large importer of oil and wants to control its supply chain. Some Chinese observes agree with this assessment and highlight Sinopec's 2005 goal of importing 15 million tons of crude oil for refinement in China. China's Go Out policy explicitly stated, in 2001, that Sinopec should "make effective use of overseas resources, build

1425-451: A minimum of 26.6 million tons. After this point production stabilised at that level and even began to rise again, reaching 27.9 million tons in 2009. By 2009, most of the oil reservoirs had been at least partially depleted . Output of natural gas averaged 1.2 billion cubic metres (42 × 10 ^  cu ft) from 1975 to 1998, peaking in 1989 with 1.5 billion cubic metres (53 × 10 ^  cu ft). The decline since then

1520-472: A more downstream oil player than PetroChina . However, since 1998 Sinopec has expanded into upstream endeavors. This expansion began with a state mandated asset swap with China National Petroleum Corporation (CNPC) which gave some of Sinopec's refineries to CNPC in return for Sinopec acquiring some of CNPC's upstream assets. BP partnered with Sinopec, in 2005, to build SECCO an ethylene derivatives plant with an initial investment of $ 2.7 billion. It

1615-694: A network of terminals in Fujian province. Their subsidiaries also expanded cooperation in Tianjin the following year. They invested over $ 3 billion from 2008 to 2019 expanding the ethylene production capacity multiple times and finally achieving 1.3 million tons per year of production. In Fujian, Sinopec also operates the Gulei Industrial Park. It began as a joint venture with a group of Taiwanese companies operating as Dynamic Ever Investments in 2015. The venture took $ 4 billion of investment and has

1710-598: A presence in 28 other counties in Shandong, and five other province-level divisions . The major production area lies on both sides of the mouth of the Yellow River. The most productive of these reservoirs are the Cenozoic Guantao and Shahejie formations. The oil field has underpinned the economic development of the region. The growth of the oil industry around the Yellow River delta led to the creation of

1805-488: A production capacity of 1 million tonnes of ethylene per year. At the time of its approval it was the only Taiwanese petrochemical joint venture in mainland china. It was approved by the Fujian branch of the NDRC which owns a 25% stake in the project. The plant began producing downstream chemicals in 2018 and became fully online in 2021. Phase two began, in 2024, when Saudi Aramco made an additional $ 9.8 billion investment in

1900-641: A publicly traded subsidiary, called Sinopec, listed in Hong Kong and Shanghai stock exchanges. China Petroleum and Chemical Corporation is the world's largest oil refining conglomerate, state owned enterprise, and second highest revenue company in the world behind Walmart . Sinopec Limited was established as a joint stock entity under the China Petrochemical Corporation Group (Sinopec Group) in February 2000. The company

1995-463: A research agreement with Baoshan Iron & Steel Co. for the construction of China's first open 10 million tonne open carbon capture, utilisation and storage (CCUS) facility. In September 2023, Sinopec used a tender to purchase 30 cargoes of LNG from more than 10 suppliers for additional supply to begin in October 2023. This additional supply helped China during the winter months as well as offset

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2090-509: Is a significant step towards the NDRC's 2015 goal of raising domestic production by 7.5 millions tons/year. In March 2013, Sinopec agreed to pay $ 1.5 billion for its parent company's overseas oil and gas-producing assets. Due to the COVID-19 pandemic , Sinopec reported a loss of 23 billion yuan in the January to June time frame of 2020. In 2021, they reported a 22% increase in revenue as

2185-497: Is a vice minister. This is a political appointment set by the Ministry of Personnel. This means that the post is always given to high ranking communist party members as a reward for career achievement in the industry. Due to the high ranking nature of Sinopec's leaders in the communist party the party does not have total control over the company and the company can exert influence on the government to get support in financing, international agreements, and pricing. For example, even though

2280-645: Is also a part owner of the joint venture POLY-GCL Petroleum, which as of 2023 is developing a $ 4 billion natural gas project in Ethiopia, which will include a pipeline to the Djiboutian coast and an export terminal. According to David H. Shinn and academic Joshua Eisenman, the Ethiopian project underscore China's commitment to expanding its import of liquified natural gas from African countries. The chairman of Sinopec, like all Chinese National Oil Companies,

2375-593: Is also minimal, at less than 20 m (66 ft). Though the continental shelf is treated as a physiographic province of the ocean , it is not part of the deep ocean basin proper, but the flooded margins of the continent. Passive continental margins such as most of the Atlantic coasts have wide and shallow shelves, made of thick sedimentary wedges derived from long erosion of a neighboring continent. Active continental margins have narrow, relatively steep shelves, due to frequent earthquakes that move sediment to

2470-769: Is approximately 650,000 barrels (103,000 m). Throughout its period of operation, it has produced a fifth of all the crude oil from China and half of all oil from the Bohai Sea. The Shengli Oil Field Company, or Shengli Petroleum Administration Bureau, is a subsidiary of Sinopec . Most of the work carried out by the Shengli Oil Field Company takes place in the city of Dongying , although it also has operations in seven other prefecture level cities in Shandong Province, Binzhou , Dezhou , Jinan , Weifang , Zibo , Liaocheng , and Yantai , and

2565-509: Is estimated that the field originally had 5.21 billion tons of oil , mostly onshore, but including some offshore reservoirs. The various reservoirs within the oil field have very different oil quality, although overall the oil has high levels of octane as opposed to gasoline . The Shengli Oil Field is the second largest oil field in China, after the Daqing Oil Field . it is also one of the oldest. The daily production of crude oil

2660-469: Is evidence that changing wind, rainfall, and regional ocean currents in a warming ocean are having an effect on some shelf seas. Improved data collection via Integrated Ocean Observing Systems in shelf sea regions is making identification of these changes possible. Continental shelves teem with life because of the sunlight available in shallow waters, in contrast to the biotic desert of the oceans' abyssal plain . The pelagic (water column) environment of

2755-462: Is known as an insular shelf . The continental margin , between the continental shelf and the abyssal plain , comprises a steep continental slope, surrounded by the flatter continental rise , in which sediment from the continent above cascades down the slope and accumulates as a pile of sediment at the base of the slope. Extending as far as 500 km (310 mi) from the slope, it consists of thick sediments deposited by turbidity currents from

2850-612: Is located in the Shanghai Chemical Industry Park, and generates over 3.2 million tons of petrochemical products annually. In 2017, Sinopec bought out the remainder of BP's stake in SECCO through its Gaoqiao subsidiary for $ 1.68 billion. Gaoqiao's operations predate the creation of Sinopec and it operates 75 plants for producing finished petroleum products such as fuels, oils, organic compounds. Ineos bought out half of Sinopec's share of SECCO in 2022 as part of

2945-414: Is often cut with submarine canyons . The physical mechanisms involved in forming these canyons were not well understood until the 1960s. Continental shelves cover an area of about 27 million km (10 million sq mi), equal to about 7% of the surface area of the oceans. The width of the continental shelf varies considerably—it is not uncommon for an area to have virtually no shelf at all, particularly where

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3040-414: Is to be built in the south of the country, at Hambantota port . Unipec, a subsidiary of Sinopec, signed a contract with French oil company Total Gabon in February 2002. Under the contract China, for the first time, bought Gabonese crude oil. During his African visit, in 2004, Chinese President Hu Jintao signed a series of bilateral trade accords with his Gabonese counterpart Omar Bongo , including

3135-596: Is used for EOR activities, and can increase oil production by 10%-15%. Capacity was later scaled up to 40,000 tons per year, with plans to reach 1 million tons per year. A new plant to carry this out was completed in 2022, and plans were put in place to build a second by 2025. This is intended by Sinpec to contribute to China's net-zero by 2060 plans . The Shengli Oil Field Company has expanded its economic interests into other industries, often linked with oil, such as chemical industries, machine-building, and electronics. They have also diversified their sources of energy. Shale oil

3230-461: The 2022 Russian invasion of Ukraine the company continued doing business in Russia. For this reason Ukraine listed Sinopec as an International Sponsors of War . Unipec, a subsidiary of Sinopec, is an intermediary for banned Russian oil . China's imports of U.S. natural gas will more than double. In March 2022, a memorandum of understanding was signed between Sinopec and Aramco to strengthen

3325-530: The Kutai Basin and has access to 15 million barrels of crude oil reserve and 700 billion cubic feet of natural gas. The deal closed with Sinopec getting an 18% stake for $ 680 million. This project aligned with China's goal of doubling gas' share of energy production during the 2009-2015 period. An existing base of joint ventures between BP and Sinopec was expanded via cooperative bunker fuel projects. These operations were then expanded in 2015. Bunker fuel

3420-684: The Ogaden National Liberation Front (ONLF), later released the seven abductees and warned foreign companies against working in the area. Sinopec said it had no plans to pull out of the resource-rich region despite the attack. Chinese Foreign Ministry spokesperson Liu Jianchao says that China strongly condemns the violent attack carried out by Somalian insurgents on the premises of the oil company Sinopec in Ethiopia. On 31 October 2011 Sinopec Addax acquired Shell 's 80% share of an exploration firm called Pecten that explores and drills in various offshore locations including

3515-484: The shelf break ). The sea floor below the break is the continental slope . Below the slope is the continental rise , which finally merges into the deep ocean floor, the abyssal plain . The continental shelf and the slope are part of the continental margin . The shelf area is commonly subdivided into the inner continental shelf , mid continental shelf , and outer continental shelf , each with their specific geomorphology and marine biology . The character of

3610-581: The 1990s, it produced around 40% of the overall pollution in Dongying. Oil wells and associated infrastructure, such as roads, disturb the wetland habitat of local wildlife. Many bird habitats were kept outside of core wildlife protection areas in order to facilitate continued oil production. The Shengli Oil Field was discovered on 16 April 1961 when the Hua 8 well was drilled. Large-scale extraction began on 25 January 1964. Crude oil production started in 1964, and

3705-764: The Angolan government blocking a deal between Shell and India's Oil and Natural Gas Corporation in favor of a deal with Sinopec. Unipec first became involved in Ghana in December 2011 when Ghana National Petroleum Corporation agreed to supply 13,000 barrels of oil per day for the following 15 years in return for the Master Facility Agreement. The MFA was a $ 3 billion six year loan from CDB which Ghanaian President Mills and Hu-Jintao directly negotiated on. The MFA also required Ghana to spend most of

3800-567: The Asian mainland. Other familiar bodies of water that overlie continental shelves are the North Sea and the Persian Gulf . The average width of continental shelves is about 80 km (50 mi). The depth of the shelf also varies, but is generally limited to water shallower than 100 m (330 ft). The slope of the shelf is usually quite low, on the order of 0.5°; vertical relief

3895-561: The Gabonese national parks council. In 2007, Sinopec redid its earlier environmental study, this time in conjunction with the Gabonese environmentalist group Enviropass and the World Wildlife Foundation, winning high marks from Gabonese, Western, and Chinese conservation experts. Shortly thereafter, Sinopec resumed production with more environmentally friendly methods. On 21 December 2006, gas started leaking during

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3990-557: The Gabonese oil ministry. In 2013 and 2014 Sinopec and the Gabonese government had significant disputes over licensing and fees. The Gabonese government nationalized one of the oilfields that Sinopec was previously licensed to extract from. Ultimately negotiations between the parties resulted in new leases for Sinopec's further extraction. In 2004, the Export–Import Bank of China signed a $ 2 billion loan with Angola to finance infrastructure projects by Chinese companies. This led to

4085-584: The Joint Development Zone. When South Sudan seceded it took most of Sudan's oil reserves with it. The Petrodas pipeline is used to transport South Sudan's oil for export in Sudan. In 2024, fighting in the vicinity of Singa, Sudan halted the flow. In 2007, in eastern Ethiopia 's Ogaden Desert, a raid by an ethnic Somali rebel group on a Sinopec drilling site left 74 dead including 9 Chinese oil workers, and 7 kidnapped. The rebels,

4180-553: The OCP pipeline which can pump 450,000 barrels per day. It was the largest petrochemical deal in Ecuadorian history. Beginning in 2012, Chinese banks began large financing agreements with Ecuador to pre-pay for oil procured via Andes Petroleum. In 2006, locals occupied and stopped work at an Andes Petroleum facility to demand the company create 400 local jobs. Andes Petroleum is required to pay profit sharing to its employees. In 2009

4275-831: The Shengli Oil Field Company and the Yellow River Delta National Nature Reserve Administrative Bureau for the management of these areas. Output peaked at 33.55 million tons in 1991. Exploitation of offshore reservoirs on the continental shelf of the Bohai Sea increased in the 1990s, from 10,000 barrels per day in 1993 to 50,000 in 1996. The offshore Chengdao oil field was China's largest shallow sea oil reservoir. By 1994, 65 reservoirs had been developed. In 1995 1,672 wells were drilled, of which 166 were exploratory and 1,506 were developed, creating an overall total of 14,367 oil wells, 5,518 water injection wells, and 274 gas wells. Overall production declined until 1999, reaching

4370-573: The Sinopec Qilu Petrochemical CCS Project, launched in 2007 to store 40,000 tons of coal-produced carbon dioxide per year. This carbon dioxide is piped as far as 80 kilometres (50 mi) to reach the oil field, where it is deposited 3 kilometres (1.9 mi) underground. A post-combustion capture plant was built in September 2010, with the capacity to process 110 tons per day (3,500 per year). This carbon dioxide

4465-556: The State Council to hold Sinopec's leaders personally responsible if risky investments cost the government financially. In 2004, Sinopec prospected for oil in the 1,550 square kilometers of Loango National Park in southern Gabon and encountered criticism for what domestic and foreign environmental critics said were poor and damaging methods. Primatology professor Christophe Boesch of the US-based environmental organization,

4560-548: The Syncrude deal is partly explained by a desire to acquire technical knowledge on oil sands extraction which can be used to boost domestic oil production. Sinopec invested $ 7.1 billion in Repsol Brazil to begin a new partnership in 2010. Chinese observers note that part of Sinopec's motivation for the deal was to bring deep water drilling expertise to China. In 2011, Sinopec additionally invested $ 5.2 billion for

4655-782: The Wildlife Conservation Society (WCS), criticized the use of dynamite and heavy machinery in exploration and road construction by Sinopec through park, noting that it might drive native gorillas deeper into the jungle, where they would be outside legal restrictions on hunting. Gabonese law states that industries can extract oil from national parks, but must rehabilitate them to the prior condition. Boesch, and other international experts, have suggested that Sinopec use other methods such as horizontal drilling to minimize its environmental footprint. Sinopec's activities in Gabon's national parks were suspended in September 2006, by

4750-407: The already existing ties between the companies and to improve their downstream operations. In April 2023, an agreement was signed between Sinopec and QatarEnergy , making Sinopec the first Asian buyer to participate in the eastern expansion of Qatar 's North Field liquefied natural gas project, with a 5% stake in an 8 million tonnes per year LNG train . The contract has a 27-year term making it

4845-609: The city of Dongying on 1 October 1983. Gudao Town was established in November 1992 to cover a settlement that had developed around the Gudao Oil Extraction Factory. Xianhe Town is also built around the oil industry. Multiple oil production plants have been established, each covering a large number of oil reservoirs. The Shengli Oil Field is an important component of the wider CNOOC Bohai Oilfield. The oil industry produces significant amounts of pollution. In

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4940-567: The coast; sand is limited to shallow, wave-agitated waters, while silt and clays are deposited in quieter, deep water far offshore. These accumulate 15–40 centimetres (5.9–15.7 in) every millennium, much faster than deep-sea pelagic sediments . "Shelf seas" are the ocean waters on the continental shelf. Their motion is controlled by the combined influences of the tides , wind-forcing and brackish water formed from river inflows ( Regions of Freshwater Influence ). These regions can often be biologically highly productive due to mixing caused by

5035-560: The company announced acquisition of Conoco Phillips's 9% stake in the Canadian oil sand firms, Syncrude , for $ 4.65bn. While largely welcomed by industry, Sinopec's Syncrude stake has raised concerns about the influence the Chinese government may try to exert on Canadian policy makers. The following year, Sinopec took over Daylight Energy for C$ 2.2 billion ($ 2.1 billion). Daylight was then renamed Sinopec Daylight Energy Ltd. . The OECD and Chinese observers note Sinopec's attraction to

5130-635: The company was fined $ 16 million for not including contractors in the profit sharing agreement. The company had made the correct total amount of payouts but not distributed them to enough people. Ecuador conducted major oil industry reforms in 2007 and 2010 which promoted many international oil companies to exit the Ecuadorian market. Sinopec, on the other hand, remained. As part of these reforms, Ecuador required that local labor be used for over 90% of unskilled and administrative positions. This put an end to further disputes about local job creation. International observers note that Andes Petroleum's operations were among

5225-459: The company's financials. To pressure the NDRC, Sinopec and CNPC cut production causing long lines at the pump. This lead to NDRC approving a 15% increase in the price at the pump. To offset losses from the price controls, the state gave Sinopec $ 1.1 billion in subsidy during 2005 and $ 647 million in 2006. This finance example demonstrates of Sinopec's implementation of policy adjusted profit. Chinese methods on how to articulate, quantify, and report

5320-420: The continental shelf constitutes the neritic zone , and the benthic (sea floor) province of the shelf is the sublittoral zone . The shelves make up less than 10% of the ocean, and a rough estimate suggests that only about 30% of the continental shelf sea floor receives enough sunlight to allow benthic photosynthesis. Though the shelves are usually fertile, if anoxic conditions prevail during sedimentation,

5415-418: The deep sea. The continental shelves are covered by terrigenous sediments ; that is, those derived from erosion of the continents. However, little of the sediment is from current rivers ; some 60–70% of the sediment on the world's shelves is relict sediment , deposited during the last ice age, when sea level was 100–120 m lower than it is now. Sediments usually become increasingly fine with distance from

5510-485: The demand for fuel and oil slowly returned to normal. In 2022, the company reported a 25% net income increase in the first quarter. Diesel output was increased by almost 10% that year and the gasoline production saw only a 0.7% increase. The Hainan Baling Chemical New Material Company, a Sinopec subsidiary in Hainan , opened a one million tonne per year Styrene-butadiene (SBC) plant in 2023. This new facility made Sinopec

5605-433: The deposits may over geologic time become sources for fossil fuels . The continental shelf is the best understood part of the ocean floor, as it is relatively accessible. Most commercial exploitation of the sea, such as extraction of metallic ore, non-metallic ore, and hydrocarbons , takes place on the continental shelf. Sovereign rights over their continental shelves down to a depth of 100 m (330 ft) or to

5700-661: The drilling of a test well by the Sinopec Southern Prospecting and Development Branch in Quingxi. 12,380 people were evacuated after the leakage occurred. It took at least three attempts and two weeks for the company to seal the leak. Continental shelf A continental shelf is a portion of a continent that is submerged under an area of relatively shallow water, known as a shelf sea . Much of these shelves were exposed by drops in sea level during glacial periods . The shelf surrounding an island

5795-684: The facilities. These expansions are scheduled to be fully operational in 2030. Sinopec completed construction of a new ethylene plant in Wuhan at the end of 2012. The construction of this plant was done as a joint venture with the South Korean SK Group. This facility was planned in alignment with the National Development and Reform Commission 's goal of producing more ethylene domestically in order to rely less heavily on foreign imports. It will provide 800,000 tons/year which

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5890-476: The field. The efficiency of EOR measures has decreased over time as more oil has been extracted. Overall output is expected to continue to decline. The use of carbon dioxide injection methods for EOR allows for the EOR process to also be used for carbon capture and storage (CCS). The most depleted oil reservoirs were the ones near Dongying, and thus near power plants producing carbon dioxide emissions. A pilot project,

5985-618: The forward edge of an advancing oceanic plate dives beneath continental crust in an offshore subduction zone such as off the coast of Chile or the west coast of Sumatra . The largest shelf—the Siberian Shelf in the Arctic Ocean —stretches to 1,500 kilometers (930 mi) in width. The South China Sea lies over another extensive area of continental shelf, the Sunda Shelf , which joins Borneo , Sumatra, and Java to

6080-453: The foundation in the east and innovative breakthroughs to accelerate the development in the west", highlighting oil and gas discoveries and commercial discoveries, optimizing the exploration, deployment, and strengthening the economic evaluation. As of December 31, 2013, Shengli Oil Field fully completed the production and operation tasks in 2013, adding 81.75 million tons of new controlled reserves and 91.28 million tons of forecasted reserves for

6175-600: The funds on projects constructed by Chinese contractors. Unipec was awarded the first $ 750 million of these funds to build the Atuabo Gas Plant . In 2013, Unipec halted work on the project to pressure Ghana into making amendments to the MFA that CDB had requested. By 2014, Ghana had only received $ 600 million of the promised MFA funds. Sinopec is a partner in Petrodar Operating Company Ltd.,

6270-461: The initial output in 1965 was 700,000 tons. Output had increased to 10.8 million tons by 1973, and exceeded 11 million in 1974. 1974 also saw the completion of a pipeline to transport oil directly to ports near Qingdao . In 1978 oil output reached 19.46 million tons, the second highest amount in China. Output continued to increase, expanding 10% per year in the early 1980s. In 1983 it passed 24 million tons, and by 1986 it passed 30 million. Production

6365-476: The investment due to sanctions, but Iran claims that pressure did not delay the deal. Iran expressed pleasure with the deal and stated the goal of replacing Japan with China as the primary exporter of Iranian oil. There is little agreement about the exact amount of oil and gas available through the Yadavaran project, but all claim that it is a large oil field by global standards. The first phase of drilling

6460-490: The lacking supply from Venture Global. On 17 October 2023, an equity agreement was signed between Sinopec and KazMunayGas JSC for a 30% stake in a $ 7.7bn polyethylene project in Kazakhstan , which is expected to start construction in the second half of 2024. At the sixth annual China International Import Expo (CIIE) on 4 November 2023, Sinopec signed various purchase agreements totalling $ 40.3 billion, one of those

6555-608: The largest producer of SBC in the world at the time. Sinopec began operating the deepest oil well in Asia in 2023. As part of Project Deep Earth the drill went 9432m below Xinjiang . Sinopec and BP have worked together since Sinopec formed. Their joint venture in Zhejiang had 2024 gas stations in 2021. They signed a memorandum of strategic cooperation with BP at the Davos Economic Forum in 2024. Sinopec has set

6650-610: The local wetland areas, and contributed to local pollution. The Shengli Oil Field lies within the delta where the Yellow River flows out into the Bohai Sea . The conditions in the delta are difficult, with shifting soils, high temperatures, and high salinity. The oil has a water cut that reaches above 95%, is highly viscous , as thin as 6 metres (20 ft), and 92% lies deeper than 1.2 kilometres (0.75 mi). Some reservoirs are as deep as 2.5 kilometres (1.6 mi). It

6745-423: The local population than EnCana did. Most of the planned expansions were halted in 2019 when opposition from environmental activists and small indigenous tribes prompted Ecuadorian courts to find that the tribes had not been properly consulted. In 2006, Sinopec withdrew from its operations in Indonesia, but began operations in Russia with a Rosneft partnership. The companies invested in Sakhalin-III and oil

6840-550: The longest ever purchase agreement for LNG. At the end of June 2023, Sinopec Overseas Investment Holding was established as a vehicle for investment, construction and operation of overseas refineries. Overseas investments at the time amount to 400,000 barrels per day at the Yasref refinery, as well as the $ 10 billion Amur Gas Chemical Complex in East Siberia . In August 2023, Sinopec, together with Shell and BASF , signed

6935-468: The most successful in Ecuador through 2014. This success prompted an expansion of its operations. The company has generally had better relations with the local population than EnCana did. International observers note that Andes Petroleum's operations were among the most successful in Ecuador through 2014. This success prompted an expansion of its operations. The company has generally had better relations with

7030-407: The oil basin near Douala , Cameroon in cooperation with TotalEnergies . In June 2013, Sinopec agreed to acquire Marathon Oil Corp's Angolan offshore oil and gas field for $ 1.52 billion. In Angola, as of at least 2023, Sinopec is a part minority owner of several offshore projects via Sinopec's half ownership of a joint venture with the private company Sonangol Sinopec International. Sinopec

7125-583: The overseas oil and gas supply bases and diversify the oil imports". This was revised in 2006 to "broaden international oil and gas cooperation". According to the company, in 2022, foreign operations were staffed 74% by local workers rather than Chinese employees. Sinopec began its partnership with Iran in 2001, and signed a 30 year deal to invest $ 70 billion in the development of Yadavaran Field in 2004. Contract negotiation for this program took three years such that technical work and funding did not actually begin until 2007. The US pressured China to block

7220-582: The role of direct financing support is not as important as indirect support. Large foreign purchases are particularly notable in the Chinese context because they require approval by the National Development and Reform Commission and the State Council. Sinopec made failed attempts to acquire Iranian oil reserves in 2001 and Kazakh reserves in 2003. In subsequent years, Sinopec relied more heavily on off-taker agreements to gain access to foreign markets. The 2007–2008 financial crisis made

7315-544: The sea surface, and receive 5,253 MJ/m2 of radiation energy from the sun. Sinopec China Petroleum and Chemical Corporation , or Sinopec , is a Chinese oil and gas enterprise based in Chaoyang District , Beijing . The SASAC administers China Petroleum and Chemical Corporation for the benefit of State Council of the People's Republic of China . China Petroleum and Chemical Corporation operates

7410-400: The shallower waters and the enhanced current speeds. Despite covering only about 8% of Earth's ocean surface area, shelf seas support 15–20% of global primary productivity . In temperate continental shelf seas, three distinctive oceanographic regimes are found, as a consequence of the interplay between surface heating, lateral buoyancy gradients (due to river inflow), and turbulent mixing by

7505-485: The shelf and slope. The continental rise 's gradient is intermediate between the gradients of the slope and the shelf. Under the United Nations Convention on the Law of the Sea , the name continental shelf was given a legal definition as the stretch of the seabed adjacent to the shores of a particular country to which it belongs. The shelf usually ends at a point of increasing slope (called

7600-428: The shelf changes dramatically at the shelf break, where the continental slope begins. With a few exceptions, the shelf break is located at a remarkably uniform depth of roughly 140 m (460 ft); this is likely a hallmark of past ice ages, when sea level was lower than it is now. The continental slope is much steeper than the shelf; the average angle is 3°, but it can be as low as 1° or as high as 10°. The slope

7695-624: The sometimes conflicting interests of profit and political policy have evolved during over time. Some commentators on the Shanghai Stock Market, where Sinopec trades, call these methods "valuation with Chinese characteristics". Sinopec demonstrated the "one profit, five rates" method in 2023. This method calls for assessing the company's performance with profit, "asset-liability ratio, return on equity, operating cash ratio, overall labor productivity, and R&D investment intensity". In February 2007, Saudi Aramco and Exxon signed

7790-545: The state owns Sinopec, the company did not pay the state any dividends until 2008. Sinopec also appoints a member to the Central Committee of the Chinese Communist Party . Chinese officials have seen some of Sinopec's investments as too politically risky. The Iran and Sudan oil partnerships in particular led to regulatory change by State-owned Assets Supervision and Administration Commission of

7885-459: The tides and to a lesser extent the wind. Indian Ocean shelf seas are dominated by major river systems, including the Ganges and Indus rivers. The shelf seas around New Zealand are complicated because the submerged continent of Zealandia creates wide plateaus. Shelf seas around Antarctica and the shores of the Arctic Ocean are influenced by sea ice production and polynya . There

7980-563: The year, and producing 27.762 million tons of crude oil. Research into enhanced oil recovery (EOR) has taken place as output was expected to decline. Chemical EOR methods were first trialled in 1991, and by the 2010s chemical EOR was producing 3 million tons each year. Thermal methods of EOR are also used. The percentage of overall production from EOR rose from 8.9% in 1995 to 29.3% in 2011, ensuring overall production dropped only slightly. New kinds of chemical EOR have been tested since 1991, although only some have made it to being properly used in

8075-484: Was a 27-year purchase deal with QatarEnergy for LNG. In November 2023, Sinopec was charged an annual fee of $ 2 million by the Sri Lankan government due to new fuel distribution regulations. Also in November, Sinopec was approved for the $ 4.5 billion refinery proposal for Sri Lanka . With the investment, it will be the third company with ties to Sri Lanka and the rights to operate 150 petrol stations. The refinery

8170-596: Was based in Geneva at the time, but the Geneva office was closed in 2017 after Sinopec agreed to pay $ 31.8 million to settle a Swiss bribery investigation of their operations in Nigeria. Sinopec claimed the office closure was due to low oil prices. The alleged bribes stemmed from a tax dispute between Sinopec Addax and the Nigerian government. Both sides claimed they had not received their fair share of benefits. The dispute

8265-609: Was completed in 2012 and production continued to expand. Sinopec claims to have ceased buying this oil due to US sanctions in 2019. Sinopec established its first drilling rig in Saudi Arabia in 2000. In 2004, Sinopec began exploring in Saudi Arabia. In 2005, Sinopec and CNPC jointly purchased EnCana an Ecuadorian Petrochemical company for $ 1.42 billion. The purchase gave the joint venture, called Andes Petroleum Company, access to over 62,000 barrels per day of crude and

8360-517: Was delivered to ports in Singapore , Fujairah , Antwerp , Rotterdam , Amsterdam , Tianjin , Qingdao , Shanghai , Ningbo , and Shenzhen in 2020. Sinopec Addax made a $ 1.5 billion investment in North Sea drilling operations in 2012. The investment was rebranded multiple times. Originally, the deal was with Talisman Energy and Sinopec exited this investment after a dispute with Repsol

8455-709: Was discovered in 2021. Production reached 171 tons daily in the Fanye-1 Well on 3 November, the highest output of a shale oil well in China. A Shale Oil National Demonstration Zone has been established in the oil field. The area has also seen investment in solar and wind power , through projects such as the Bozhong Offshore Wind Power Project. Combined, as of 2024 both produced more energy for Dongying than thermal power. The offshore areas have wind speed averages of around 7.6 metres per second (25 ft/s) at 100 metres (330 ft) above

8550-517: Was first drilled in 2006. Rosneft expanded its cooperation with Sinopec in a joint venture called Udmurtneft. They acquired access to 551 million barrels of proven reserves and facilities capable of producing 120,000 barrels per day. The entirety of the deal was financed by Sinopec, but the total price was not disclosed. The sellers claimed offers were $ 4 billion. In 2008, Sinopec bought Tanganyika Oil for $ 2 billion giving Sinopec access to its Syrian oil fields. These fields were reported to have over

8645-595: Was settled for $ 2.1 billion. The dispute began in 2015 over amounts paid by Sinopec and was settled in 2023. In 2013, company sold a 30 percent stake of an oil and gas block in Myanmar to Taiwan's CPC Corp. This was followed by Sinopec's acquisition of a 33% stake in Apache Corporation ’s oil and gas business in Egypt for $ 3.1 billion. In 2021, Sinopec began a partnership with NIO , when they unveiled that

8740-578: Was settled in 2015. Addax's resources were concentrated in West Africa and Kurdistan . Sinopec's assumption of the agreements with the Kurds created difficulty in forming new agreements with the Iraqi government because Iraq has a long standing policy against dealing with anyone who makes agreements with the Kurds. However these issues did not spread to other Chinese energy companies. On 13 April 2010

8835-523: Was simultaneously listed in Hong Kong, New York, and London in October 2000. The IPO raised $ 3.5 billion. A Shanghai listing was completed in June 2001. Prior to its operation as a company Sinopec's assets came from the Ministry of Petroleum Industry and the Ministry of Chemical Industry which partially privatized in the 1980s. Given its legacy asset base from Sinopec Group, analysts have categorized it as

8930-415: Was slightly arrested in the 21st century, and was 770 million cubic metres (27 × 10 ^  cu ft) in 2008. Output of oil was 27.34 million tons in 2011 and 2012, and the field also produced 500 cubic metres (18,000 cu ft) of natural gas . In 2013, Shengli Oilfield grasped the two major oil and gas exploration blocks in the east and the west, focusing on "fine exploration to stabilize

9025-502: Was stable in the late 1980s. Exploration uncovered new reservoirs in 1987 and 1988. The Yellow River Delta National Nature Reserve that were created in Dongying in the 1990s had its management borders defined to minimize overlap with facilities used to exploit the Shengli Oil Field. Nonetheless, 515 oil wells producing 4.5% of output at the time were located in the area designated as a reserve, leading to coordination between

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