CHINA'S SINOPEC SEEKING BROADER BUSINESS SCOPE, FOREIGN VENTURES

China National Petrochemical Corp. (Sinopec), China's state owned company overseeing most of the nation's refining and petrochemical infrastructure, is expanding its horizons to foreign opportunities. In coming years, Sinopec plans to expand its overseas businesses, including setting up Sino-foreign joint ventures abroad and cooperating in trade with bordering countries, especially the former Soviet Union. Sinopec also will pursue more foreign capital to set up joint ventures.

Jan. 19, 1993

2 min read

In coming years, Sinopec plans to expand its overseas businesses, including setting up Sino-foreign joint ventures abroad and cooperating in trade with bordering countries, especially the former Soviet Union. Sinopec also will pursue more foreign capital to set up joint ventures.

Sinopec's ultimate goal is to establish itself as large, integrated, commercial group consisting of industrial, trading, commercial, financial, research, technology, and information units.

Its latest ventures include contracts in Kuwait and Pakistan.

KUWAITI CONTRACT

Kuwait National Petroleum Corp. late last year let a $51 million contract to Sinopec for reconstruction work on Kuwait's 370,000 b/d Mina al-Ahmadi refinery, damaged during the 1991 Persian Gulf war with Iraq.

The contract is Sinopec's biggest foreign contract to date. China won favor with Kuwait's government in 1991 when it sent teams of firefighters to extinguish oil well fires started by Iraqi troops.

The contract calls for repairs to asphalt, atmospheric and vacuum distillation, and atmospheric resid desulfurization/hydrogenation units. Sinopec also is to monitor and repair piping and ancillary mechanical facilities and utilities.

Work was to get under way last month and be complete next September. At that time, the refinery's capacity is expected to be restored at least to 160,000 b/d.

PAKISTANI CONTRACT

Engro Chemical Pakistan, one of Pakistan's two leading urea producers, late last year let a $2 million contract to Sinopec to build a urea prill tower at its Daharki Sindh, Pakistan, urea complex.

Engro is expanding urea production capacity at the complex to 600,000 metric tons/year from 280,000 tons/year at a total project cost of $120 million.

Together with planned expansions by Fauji Fertilizer, Pakistan's urea production will jump to 2.8 million tons/year, making it self-sufficient in urea by mid-June 1993. When that occurs and urea exports begin, China is expected to be the main buyer of Pakistani urea.