As of the end of 2011, Sinopec is the second largest domestic oil and gas producer in China. The Company's oil and gas exploration and development blocks are located in the eastern, western and southern regions of China. As of December 31, 2011, it held 297 block exploration licenses with a total prospecting right area of 966,800 square kilometers, and 192 block mining licenses with a total mining right area of 20,300 square kilometers.
In 2011, the Company added 410.73 million barrels of oil equivalent (mmboe) of recoverable oil and gas reserves throughout the year***, of which 280.92 mmboe of crude oil and 778,819 million cubic feet of natural gas were added. For the whole year*** produced 321.73 million barrels of crude oil and 516.94 billion cubic feet of natural gas. The Shengli Oilfield is the Company's most important crude oil production base, producing 194.11 million barrels of crude oil in 2011***.
As of December 31, 2011, the Company's remaining recoverable reserves of oil and gas were 3,966.21 million barrels of oil equivalent, of which 2,848.10 million barrels of crude oil and 6,708.68 billion cubic feet of natural gas.
Toward the end of 2011, the company launched five major battles to increase reserves and production in Shengli Oilfield, Tarim Basin, Ordos Basin, Sichuan Basin and unconventional oil and gas.
On January 6, 2016, Sinopec Group announced that its Wei-Si well, deployed in the Beibu Gulf area, had successfully completed the testing of two oil-bearing layers on January 5, and obtained high-yield oil and gas flow on a trial basis, with a daily production of more than 1,000 tons of oil and gas. The first layer test of the target section produced 1,458 cubic meters of high quality crude oil (equivalent to 1,264 tons) and 71,800 cubic meters of natural gas per day, while the second layer test produced 1,349 cubic meters of high quality crude oil (equivalent to 1,184 tons) and 76,000 cubic meters of natural gas per day, which is the highest record of a single well for Sinopec's offshore oil and gas exploration and is a rare high-yield test well in China in the past ten years. It is also a rare high-yield test well in China in the past ten years, bringing new hope for future exploration breakthroughs in the Beibu Gulf waters.
The company's 2009-2011 E&P production operations: 2011 2010 2009 2011 year-on-year change from 2010 (%) Crude oil production (million barrels) 321.73327.85327.62(1.9) of which: China 303.37302.18301.150.3 Africa 18.3625.6726.47(28.5)Natural gas production (billion cubic feet) 517.07441.39299.0117.1 Oil and gas equivalent production (million barrels of oil equivalent) 407.89401.42377.451.6 Remaining crude oil proved reserves (million barrels) 28482,8882,920(1.4)Remaining natural gas Proven reserves (billion cubic feet) 67,096,4476,7394.1 Remaining proven reserves of oil and gas (million barrels of oil equivalent) 39,663,963,0430.1 In 2013, the Company added 20 conventional oil and gas mineral rights blocks with an area of 90,000 square kilometers, and 15 column shale gas mineral rights blocks with an area of 49,000 square kilometers throughout the year. New oil economically recoverable reserves of 44.14 million tons, replacement rate of 100.8%; new natural gas economically recoverable reserves of 10.9 billion cubic meters, replacement rate of 64%.
In 2013, the Company produced 43.78 million tons of crude oil, with an upward production of 600,000 tons; produced 18.7 billion cubic meters of natural gas (including 140 million cubic meters of shale gas), with an upward production of 1.8 billion cubic meters. New crude oil production capacity of 5.19 million tons and natural gas production capacity of 2.44 billion cubic meters (excluding shale gas). Oil Refining As of the end of 2011, SINOPEC is China's largest oil refiner and the largest producer of petroleum products in China, with the second largest oil refining capacity in the world, and its main products include gasoline, kerosene, diesel oil and lubricating oil. The three refining and chemical clusters are mainly located 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, with favorable geographic locations, convenient transportation, and strong market demand, which provide constant power for China's economic development.At the end of 2011, SINOPEC's primary processing capacity reached 247 million tons.
The company's refining production in 2009-2011: 2011 2010 2009 2011 Year-on-year change from 2010 (%) Total distribution of refined oil products (million tons) 217.37 211.13 186.58 3.0 Gasoline, diesel and kerosene production (million tons) 128.00 124.38 113.69 2.9 Of which: Gasoline (million tons) 37.10 35.87 34.43 3.4 Diesel (million tons) 77.17 76.09 68.86 1.4 Kerosene (million tons) 13.73 12.42 10.39 10.5 Production of chemical light oil (million tons) 37.38 35.00 26.87 6.8 Light oil yield (%) 76.08 75.79 75.54 Improvement of 0.29 percentage points Comprehensive commodity rate (%) 95.09 94.83 94.53 Increased by 0.26 percentage points In 2013, the Company processed a total of 234 million tons of crude oil, an increase of 4.8%; produced 141 million tons of refined oil products, an increase of 5.2%; and produced 38.23 million tons of chemical light oil, an increase of 4.9%.
The company has achieved remarkable results by optimizing production plans, adjusting process operations, increasing production of gasoline, jet fuel, asphalt and other high-value products, and reducing production of diesel fuel, commodity heavy oil, petroleum coke and other low-value-added products. The company produced 45.94 million tons of gasoline, an increase of 11.8%, exceeding the increase in processing volume by 7 percentage points. Produced 17.43 million tons of jet fuel, an increase of 16.1%, exceeding the increase in processing capacity by 11.4 percentage points. Produced 7.72 million tons of asphalt, an increase of 24.0%, exceeding the processing volume increase of 19.1 percentage points. Produced 77.48 million tons of diesel fuel, a decrease of 0.4%, less than the processing volume increase of 5.2 percentage points. The production of petroleum coke 13.8 million tons, an increase of 1.8%, 3 percentage points below the increase in processing volume.
On April 24, 2013, SINOPEC's No.1 bioaviation coal was successfully test-flown at Shanghai Hongqiao Airport. on February 12, 2014, the Civil Aviation Administration of China (CAAC) formally issued a Certificate of Technical Standards and Requirements for Bioaviation Coal No.1 Project Approval (CTSOA) to SINOPEC. SINOPEC's No.1 bioaviation coal was granted the airworthiness license, which is a new development and breakthrough in China's bioaviation coal business, making China the fourth country with its own R&D and production technology of bioaviation coal after the U.S., France and Finland, and SINOPEC became the first domestic enterprise with its own R&D and production technology of bioaviation coal. Oil Sales SINOPEC's main market for oil sales covers all provinces, autonomous regions, municipalities and special administrative regions in China except Taiwan Province.
SINOPEC's refined oil products sales network consists of three major components. First, SINOPEC Sales Company Limited, a wholly-owned subsidiary of SINOPEC, and its four major regional companies in the major markets, which undertake the unified balance of SINOPEC's refined oil resources, transportation coordination and the supply of refined oil products to directly-affiliated sales enterprises as well as to specialized users; and second, the provincial-level petroleum subsidiaries (including the Hong Kong Company) and their subordinate Secondly, the sales network consisting of provincial oil subsidiaries (including the Hong Kong Company) and their affiliated regional (prefecture and city) companies; and thirdly, the sales network established by SINOPEC through joint ventures with other refined oil products operating units and franchising throughout the country.
As of the end of 2011, the Company had 30,121 gas stations, of which 15 were franchised.
In 2011, the Company's domestic sales of refined oil products reached 151 million tons, a year-on-year increase of 7.6 %.
The Company's marketing and distribution operations from 2009 to 2011 2011 2010 2009 2011 Year-on-year change from 2010 (%) Crude oil processing volume (million tons) 162.32 149.23 130.32 8.8 Total distribution volume of refined oil products within the territory (million tons) 151.16 140.49 124.02 7.6 Of which. : Retail sales volume (million tons) 100.24 87.63 78.90 14.4 Direct sales volume (million tons) 33.22 32.40 25.61 2.5 Wholesale sales volume (million tons) 17.70 20.47 19.52 (13.5) Average annual refueling volume of single-station refueling (tons/station) 3,330 2,960 2,715 12.5 As at 31 December 2011 As at December 31, 2010 December 31, 2009 Change at the end of the year under review over the end of the previous year (%) Total number of SINOPEC-branded gas stations (seats) 30,121 30,116 29,698 0.02 Of which: Number of self-operated gas stations (seats) 30,106 29,601 29,055 1.7 Number of franchised gas stations (seats) 15,515 643 ( 97.1) As of the end of 2011, SINOPEC is the largest producer and distributor of petrochemical products in China. Its petrochemical production plants are located in the economically and market-developed regions in eastern, central and southern China, producing and selling various types of petrochemical products, including intermediate petrochemicals, synthetic resins, synthetic fiber feedstocks and polymers, synthetic fibers, synthetic rubbers and chemical fertilizers. The Company's petrochemical production is integrated upstream and downstream with the Company's refining business, and chemical raw materials (such as naphtha) are mainly supplied by each of the Company's refining producers. The vast majority of the Company's petrochemical products are sold in the PRC domestic market.
As of the end of 2011, the Company's major chemical products' production capacity (including new and expanded and reformed units built during the year), output, and market share were as follows:
Thirteen ethylene producers, including four joint ventures, with a year-end production capacity of 9.425 million tons, and the actual production of 9.894 million tons of ethylene. Synthetic resin production enterprises 30, the end of the year production capacity of 12,988,600 tons, the year's output of 13,652,000 tons, synthetic resins, the domestic market share of 22.05%; synthetic rubber production enterprises 5, the production capacity of the device 930,000 tons, the year's production of 990,000 tons of synthetic rubber, the domestic market share of 25.1%. Synthetic fiber monomer and polymer production enterprises 15, the device production capacity of 9,286,400 tons, the year the production of synthetic fiber raw materials and polymers 9.38 million tons, the domestic market share of 20.33%. Synthetic fiber manufacturers 8, polyester, acrylic, nylon, polypropylene fiber device production capacity of 1,534,600 tons, the year produced 1,388,000 tons of synthetic fibers ****, the domestic market share of 4.76%.
The company's 2009-2011 chemical main product output Unit: thousands of tons 2011 2010 2009 2011 over 2010 year-on-year change (%) Ethylene 9,894 9,059 6,713 9.2 Synthetic Resin 13,652 12,948 10,287 5.4 Synthetic Rubber 990 967 884 2.4 Synthetic Fiber Monomers and Polymers 9,380 8,864 7,798 5.8 Synthetic Fibers 1,388 1,393 1,302 -0.4 In 2013, the Company produced 9,980,000 tons of ethylene throughout the year, with the yield of ethylene's high value-added products increasing by 0.24% and ethylene's energy consumption decreasing by 3.95 kg of standard oil per ton. Natural Gas In 2013, the Company sold 16.84 billion cubic meters of natural gas, an increase of 9.4%, and sold 1 billion cubic meters of automotive natural gas, an increase of 67.5%. Refined Oil In 2013, the Company achieved an annual operating volume of 180 million tons of refined oil products, an increase of 4.0%; the domestic operating volume of refined oil products was 165 million tons, an increase of 3.8%, of which the retail volume was 114 million tons, and the number of self-operated gas stations reached 30,500; the operating volume of refined oil products outside of China (Hong Kong region) was 14.57 million tons, an increase of 2.9%.
As of the end of 2013, the Company maintained 30,536 SINOPEC-branded gas stations, a decrease of 300 from the end of the previous year; of which, 30,523 were self-owned gas stations, a decrease of 300 from the end of the previous year. The refueling volume per station increased by 5.97%. Non-Oil Products In 2013, the Company's annual non-oil products operating income amounted to RMB13.35 billion, an increase of 21.4%.
Continuing to focus on EasyJet convenience stores, combining regular promotions with thematic marketing to enhance the attractiveness of EasyJet, the annual in-store rate reached 4.1%, an increase of 1.9 percentage points. Selected local specialties; vigorously promoted self-branded products; promoted diesel vehicle exhaust treatment fluid to reduce diesel vehicle exhaust emissions; accelerated the development and construction of carwash outlets, and built and renovated 300 new carwash outlets with a unified image. Fuel Oil In 2013, the Company achieved an annual operating volume of 20.27 million tons, a slight increase year-on-year. Other Refined Products The unified sales of liquefied gas was successfully implemented, with the industrial gas ratio reaching 37.4% for the year, an increase of 11.7 percentage points.
Asphalt market share to maintain a leading domestic, high-speed rail emulsified asphalt, hard asphalt, warm mix asphalt, modified asphalt and other asphalt differentiated, high-end products continue to expand. The annual asphalt sales increased by 21.5%.
The annual lubricating oil business totaled 2.036 million tons, an increase of 28%; base oil third-party trade of 650,000 tons; industrial oil sales of 240,000 tons, an increase of 12%. Lubricant market development achieved results, in aerospace, aviation, ocean-going, high-speed rail and other high-end areas of the application of cooperation to make breakthroughs, the addition of 68 new large customers, the scale of more than 2,300 customers. Chemical Products In 2013, the Company completed the operation of 58.23 million tons of chemical products, an increase of 3.88 million tons, an increase of 7.1%. Catalyst In 2013, the Company sold 147,000 tons of various catalysts. In the face of fierce market competition, the Company adjusted and optimized its marketing strategy in a timely manner to enhance its market control ability, and its domestic sales volume reached a new record high of 130,000 tons, an increase of 11.1%. Offshore oil and gas exploration and development In 2013, the Company achieved an annual equity oil and gas production of 38.71 million tons of oil equivalent, an increase of 33.3%.
The success rate of exploration wells and appraisal wells reached 54.3% and 80% respectively, and the Company achieved outstanding exploration results in projects in the deep sea of Brazil, Kazakhstan and Angola, as well as significant reserve increase in rolling exploration projects in Argentina, the Andes, and Addax, laying a reserve foundation for the next step of exploration and deployment and internationalized operation of oil and gas production.
In 2013, the Company successfully acquired 1/3 interest in Apache's Egyptian assets, part of the MS shale assets of Chesapeake in the United States, and signed an agreement on the acquisition of 10% interest in Angola's Block 31; it carried out capital operation and asset disposal, and successfully injected the interests in Russia's UDM, Kazakhstan's CIR, and Colombia's Sacred Lake Energy into Petrochemicals Co. In 2013, the Group transferred 30% interest in Block D in Myanmar to Taiwan's PetroChina and withdrew from some projects with limited resource exploration potential. Overseas Petroleum Engineering Services In 2013, the Company signed 14 new rig service contracts in Saudi Arabia with a contract value of USD 1.48 billion, which is the largest overseas drilling and repairing project won by SINOPEC in terms of contract value; and successfully signed an incentive-type contract for integrated services for Mexico's EBANO oilfield with a contract period of 30 years. The contract period was 30 years. During the year, SINOPEC signed 4.6 billion US dollars in new contracts and completed 2.9 billion US dollars in contracts. The total number of overseas employees was 27,208, including 7,298 Chinese employees and 19,910 foreign employees. Overseas Refining and Chemical Joint Venture Cooperation Overseas refining and chemical investment and cooperation projects progressed steadily, with the construction of Saudi Yanbu Refinery Project, Fujairah of the United Arab Emirates and Batam Island Warehousing Project of Indonesia progressing according to schedule. Sibur nitrile rubber project in Russia completed delivery. SINOPEC's lubricant project in Singapore was completed and put into production. SINOPEC conducted feasibility studies on joint overseas refining and chemical joint ventures in South Africa, Brazil and Cambodia. Signed a Memorandum of Understanding (MOU) with the Mongolian government to study the feasibility of Mongolia's coal-to-gas project, and to follow up on cooperation opportunities for natural gas chemical projects in natural gas-rich countries. Discussed with some national petroleum and petrochemical companies about chemical projects based on SINOPEC's own technology. Offshore Refining Engineering Services In 2013, the Company executed 25 projects*** overseas, including 9 EPC general contracting projects and 16 construction projects, further enhancing its international project execution capability. The company signed new contracts amounting to USD 3.459 billion and completed contracts amounting to USD 1.145 billion. There were 13,792 project management and operation personnel executing projects abroad, including 1,481 SINOPEC employees, 6,526 domestic hired and subcontracted personnel, and 5,785 foreign hired and local subcontracted personnel. Domestic Joint Ventures In 2013, the Company successively established four Sino-Korean (Wuhan) Petrochemical Company Limited, Maoming Petrochemical BASF Company Limited, Maoming Xinjinming Petroleum Company Limited and Chongqing Aiwei Chemical Company Limited, and achieved milestones in Shanghai Gaoqiao nitrile butadiene rubber project, Yangzi Petrochemical Phenol Acetone Joint Venture, Yangzi Petrochemical Carbon Nine Resin Joint Venture and Jiujiang Air Separation Joint Venture, and substantively promoted Fujian Gulei Joint Venture. The joint venture project of Yangzi Petrochemicals for phenol acetone, the joint venture project of Yangzi Petrochemicals for carbon 9 resin and the joint venture project of Jiujiang Air Separation have achieved milestones, which have substantially boosted the progress of the Gulei Refining and Chemical Integration Project in Fujian.
In 2013, the Company's cooperation with domestic enterprises was further strengthened, with the establishment of Nanjing Shihua Oil Transportation & Shipping Company Limited, SINOPEC Lubricants Shandong Company Limited and other Sino-China joint ventures, and positive progress in domestic joint ventures. International Trade The annual import of crude oil was 189.71 million tons, and the third-party trade of crude oil was 95 million tons. The annual export of refined oil products was 7.98 million tons, an increase of 46.4%, and the third-party trade of refined oil products was 18.42 million tons.
International trade in equipment and materials, petrochemical products and other products amounted to USD 3.13 billion for the year, an increase of 14.7%.
The import, export and third-party trade of chemical products for the year amounted to 8.32 million tons, an increase of 4.4%.
In terms of catalyst sales, polyolefin catalysts were exported to the United States for the first time, ethylbenzene dehydrogenation catalysts entered Taiwan on a large scale, silver catalysts were exported for the first time, and the products were steadily supplied to large international oil and petrochemical companies, with the revenue from export sales basically unchanged from the previous year.
Fuel oil optimization of resource procurement, strict cost control, and efforts to expand overseas business, good economic efficiency, the year completed international business sales of 6.17 million tons. Important breakthroughs were made in geophysical technology research and development. A brand technology system with independent intellectual property rights, the I Technology System, was formed, which mainly includes: Fine Seismic Exploration (I - F i n e ) , Complex Reservoir Exploration in Complex Areas (I - C o m p lex ) , Reservoir Geophysics (I - Rese r v o i r ) , Marine Geophysical Exploration (I - O f f s h o r e ) and Unconventional Resource Exploration (I - O f f s h o r e ) . r e ) and unconventional resources exploration (I-Unconventional), experimental geophysics (I-Experiment), geophysical equipment (I-E q u i p m e n t ), and geophysical software (I-πframe). It is the first time to apply the efficient synchronized sliding scanning acquisition technology for controlled seismic sources, and set three highest records for the average, daily output and hourly rate of controlled seismic source construction in China.
The safe and efficient development technology of extra-large ultra-deep gas field with high sulfur content has been formed. The key technologies for drilling and completing complex deep wells and ultra-deep wells with high speed, such as well structure optimization, high-efficiency rock-breaking tools, under-balanced drilling, fine pressure-control drilling, Jiejian-type automatic pendant drilling, composite drilling, anti-gas scram cementing, high-pressure well control, etc., have already been formulated.
The effect of drilling speed-up and efficiency-enhancing technologies is remarkable. By popularizing the application of pregnant diamond bit + turbine drilling technology, torque impactor + PDC bit technology, gas drilling and other drilling speed technology, the technical effect has been enhanced.
The R&D and application of oilfield chemical agent products have been effective. The high-performance water-based drilling fluid system has reached the domestic advanced level; the oil-based drilling fluid system has been gradually improved and basically meets the field requirements. Low-density, ultra-high-density, micro-expansion and toughness cement paste systems have matured.
The drilling technology of unconventional shale gas wells has been greatly developed. Engineering supporting technologies such as shale gas long well section horizontal well drilling, oil-based drilling fluid and elastic-plastic cement paste cementing have been formed.
Horizontal well fracturing technology has made a major breakthrough. The initial supporting technology of shale gas horizontal well segmental fracturing has been successfully applied to 16 wells in Fuling Jiao Shi Ba area using hydraulic pumping and bridge plug injection joint technology, and 13 wells have been put into production, with an average daily gas production of more than 150,000 cubic meters per day from a single well, which makes a special contribution to the breakthrough of SINOPEC's shale gas exploration and development.
Significant progress was made in the development of logging instruments. Success was achieved in the development of downhole instruments for high-temperature small boreholes and high sulfur-resistant gas-producing profiles, which strongly supported the production needs of open-window sidetrack drilling and Puguang gas field development; and significant progress was made in the injection technology of horizontal well segmental fracturing. Meanwhile, mature technologies such as fast platform logging, cement cementing logging in eight sectors, and pump-out storage logging have been popularized and applied, playing an important role in speeding up and improving efficiency.
New progress was made in logging technology and comprehensive evaluation of complex reservoirs. We have completed the application of Raman laser gas detection and semi-permeable membrane-based oil and gas on-line detection technology in several wells, which supports real-time discovery and quantitative evaluation of oil and gas. The comprehensive evaluation capability of complex reservoirs, especially shale gas, has been further improved, and the calculation model of shale oil and gas parameters in different regions and the identification and classification criteria of favorable reservoir sections have been established, providing technical support for mud shale oil and gas resource evaluation such as declaration of JiaoShiBa reserves.
New progress has been made in marine engineering construction technology. The construction project of "Shengli 902" pipe-laying vessel won the first prize of National Excellent Welding Project, and the research on the design and construction technology of offshore engineering in the East China Sea cooperation block has achieved stage-by-stage results.
Petroleum machinery and equipment new product development and application of new results. The main research work of the National Science and Technology Major Special Project "3000-type complete sets of fracturing equipment development and application demonstration project" was fully completed, and the participation in the fracturing field test of Fuling shale gas wells was a complete success. We made a breakthrough in the technology and quality of equal-wall-thickness screw drilling tools, and developed personalized drill bits and screw drilling tools for the Fuling shale gas demonstration area, with remarkable results in speed-up and efficiency improvement. Continuous tubing and non-pressurized well operation equipment were successfully developed; the technology and quality of RDS compressors were continuously improved, and 11 sets of 6RDS compressor sets were successfully put into production in Da Niu Di gas field.