by Zou
China’s utmost oil business in Shaanxi Province where the extension of the oil (Group) Co., Ltd. (hereinafter referred to as “the extension of the oil”), will hand in the oil assembly to build a scale of one million tons of ethylene plant with a total money of 23 billion yuan is in all prospect to be.
A long time, to continue the excavation and perfecting of oil in the locality is “one-man operations.” In today’s oil charges smaller, its top oil output time span is over the position with China National Petroleum Corporation will together make up the oil to continue the short-board, and its seek for new earnings development point.
Development and Reform Commission has reported
According to writer had an sole grasp of the novel plant will be positioned in Yan’an City, Shaanxi Province. Shaanxi Provincial Government and China National Petroleum Corporation has signalled a formal cooperation harmony, the couple sides have jointly yielded to the National Development and Reform Commission sanctioned the endeavour submission records, and conduct pre-feasibility examine reports.
However, the ratio of the two sides of the joint venture, co-operation remains unclear.
Yan’an City, the Office of Development and Reform Commission, a person to the CBN, told reporters: “The project in charge of the province, the region will be settled in New Chemical Yang Shu.” According to public information on the chemical zone will be one million tons of ethylene as a leader, the construction of nine downstream chemical projects.
In supplement to Sinopec, PetroChina and CNOOC these three inside crosswise, the extension of the oil is the simply business with oil and gas exploration and expansion of provincial oil businesses qualified below the Shaanxi Provincial People’s Government. 2008, finished sales of 62.2 billion yuan, profit 10 billion yuan, 78,000 population are employed.
The extension of oil in 1998 and has undergone two rounds of the 2005 reorganization of its core assets are under the extended group Oilfield Company Limited (hereinafter referred to as “oil share”). It has been an important local Shaanxi large taxpayer. In 2007, the oil field stake 1.92 billion yuan tax.
Oil portions also treated to carry on the oil field has been the inside rate of the acquisition objectives. A lineage close to the highest crosswise in the oil assembly conveyed CBN Reporter: Many years ago, China National Petroleum Corporation hopes to win oil field supplies, but a stringent stand in Shaanxi Province, so unable to do so.
“This cooperation extended to open up the downstream oil business will benefit.” Yi Trade Advisory Network analyst, said Liu Chuan-jun.
Extension of the mining area there are a hundred years of mining history. A Sinopec’s management is responsible for exploration and development told reporters that such a life of oil production can no longer easy to cut is inevitable. In addition, it belongs in the Ordos Basin, has been in the oil田长庆Spodiopogon oilfield, oil field it is impossible to extend the large-scale expansion outward.
To make up for short-board
Mining is one of the difficulties there are difficulties, low oil prices on corporate profits of crude oil demonstration has also brought challenges.
The business has revealed, as asserted by the reorganization of the localized affirmation was to continue the exploitation of oil per 1 ton of crude oil to about 550 localized payment.
Yesterday, the domestic selling price of crude oil is about 47 U.S. dollars / barrel (about 2240 yuan / ton) to the price, 550 yuan / ton to extend the oil accounted for about one-quarter of oil revenue. Thus the lower oil prices, the revenues of the extension of the greater pressure.
Moreover, there is no extension of the oil filling stations, its subsidiary refinery production of refined oil through the oil group to sell two a year to sell the finished products from fuel oil in about 1.1 million tons.
The role of these factors, the extension of the operation of the oil will face big challenges, and need to find new profit growth point.
General supervisor of the contrive to continue the oil-yiu have said that in 2009 the elongation of 300 billion yuan of oil, the oil investigation and development to be 10.4 billion, most of the residual pieces will be put on the chemical industry.
With the east and south China in different ethylene-intensive layout, Shaanxi, Shanxi and Gansu in Northwest China, with the exception of the Lanzhou Petrochemical Petroleum have 600,000 tons / year ethylene plant, there is no one million tons of large-scale ethylene plant.
Whether or not the right time for ethylene production, the industry also has different points of view. China Petroleum and Chemical Industry Association, who said that our country may not be too much of the ethylene project approved, the project has been around a lot of projects. And the Middle East also made use of its cheap production costs to increase ethylene production, the global face of excess ethylene.