By an OGJ Online Correspondent
BEIJING, Feb. 2�China Petroleum & Chemical Corp. (Sinopec) raised spending to $6.78 billion in 2000 as compared with $2.74 billion in 1999.
Nearly three-quarters of the budget was spent on oil and gas exploration and development, upgrading refining and ethylene units, and acquisition of oil retail facilities from local companies.
Capex was 11% higher than planned because of higher-than-expected costs to purchase gasoline stations and oil storage facilities.
Upstream, the company injected much of its funds into oil and gas exploration in the East China Sea, Tarim basin, and Sichuan basin, where its subsidiary Sinopec Star Petroleum Co. Ltd. has reported major oil and gas finds.
The company also began expansion of ethylene crackers through units Yanshan Petrochemical Corp. in Beijing, Shanghai Petrochemical Corp. in Shanghai, and Yangzi Petrochemical Corp. in Nanjing city in the east.
The company almost doubled the number of its gasoline stations in 2000 to 20,000. China has about 88,000 gasoline stations.
Sinopec needs to acquire more oil retail outlets in order to consolidate its position in China as a major retailer for oil products before China enters the World Trade Organization, expected this year. China has committed to opening its oil retail market to foreign competition after it joins the WTO.
Sinopec has about 84% of the wholesale market and 61% of the retail market in eastern and southern Chinese provinces. Sinopec's share of the oil products retail market in the south and east was 40% in 1999.
Company retail products sales rose 11% on year to 23.5 million tonnes.
