Sinopec aims to slash operating costs $265 million

April 10, 2001
China Petroleum & Chemical Corp (Sinopec) is working on a number of cost-cutting measures to save up to $265 million this year. Sinopec will also cut 27,000 jobs, saving 350 million yuan ($42.3 million). It hopes to cut 100,000 jobs by 2005.


By an OGJ Online Correspondent

BEIJING, Apr. 10 -- China Petroleum & Chemical Corp (Sinopec) is working on a number of cost-cutting measures to save up to $265 million this year.

Sinopec will also cut 27,000 jobs, saving 350 million yuan ($42.3 million). It hopes to cut 100,000 jobs by 2005.

The company did not elaborate what measures it was taking, but said it plans to cut crude oil production costs by 3.8% this year to $6.54/bbl.

Crude oil exploration costs will be reduced to $5.20/bbl, down from $5.47/bbl last year.

On the refining side, the company plans to cut expenses by 3.3% to $2.07/bbl. Ethylene production costs would be cut by 11% to $20.8/tonne (US).

Sinopec plans to produce 30.6 million tonnes of crude oil, 2.86 million tonnes of ethylene, and run 118 million tonnes of crude this year.

The company is China's largest refiner and ethylene manufacturer, but a small crude producer.

The company is targeting to cut combined costs by $1.6 billion in the next 3 years.