Hand in hand to continue the oil in the oil will be one million tons ethylene task to set up

China’s largest oil company 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 group to build a scale of one million tons of ethylene plant with a total investment of 23 billion yuan is expected to be.

A prolonged time, to carry on the mining and refining of oil in the paddock is “one-man operations.” In today’s oil prices smaller, its apex oil demonstration time span is through the circumstances with China National Petroleum Corporation will jointly generate higher the oil to carry on the short-board, and its track down for novel profit growth point.

Development and Reform Commission has reported

According to reporter had an exclusive understanding of the new plant will be located in Yan’an City, Shaanxi Province. Shaanxi Provincial Government and China National Petroleum Corporation has signed a formal cooperation agreement, the two sides have jointly submitted to the National Development and Reform Commission approved the project application documents, and conduct pre-feasibility study reports.

However, the ratio of the two edges of the junction project, co-operation continues unclear.

Yan’an City, the Office of Development and Reform Commission, a individual to the CBN, notified reporters: “The task in ascribe of the province, the district will be resolved in New Chemical Yang Shu.” According to public data on the chemical zone will be one million tons of ethylene as a foremost, the building 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 furthermore organised to continue the oil area has been the centered rate of the acquisition objectives. A source close to the largest grade in the oil assembly notified CBN Reporter: Many years before, China National Petroleum Corporation wants to win oil area assets, but a firm stand in Shaanxi Province, so incapable 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 paddock there are a hundred years of mining history. A Sinopec’s authorities is responsible for exploration and expansion conveyed writers that such a life of oil demonstration can no longer straightforward to cut is inevitable. In supplement, it belongs in the Ordos Basin, has been in the oil田长庆Spodiopogon oilfield, oil field it is despairing to carry on the very many deductions outward.

To make up for short-board

Mining is one of the difficulties there are difficulties, reduced oil charges on business earnings of crude oil output has furthermore conveyed challenges.

The business has uncovered, according to the reorganization of the provincial harmony was to carry on the exploitation of oil per 1 ton of crude oil to come seal 550 provincial payment.

Yesterday, the household trading cost of crude oil is about 47 U.S. dollars / barrel (about 2240 yuan / ton) to the cost, 550 yuan / ton to continue the oil accounted for about one-quarter of oil revenue. Thus the smaller oil charges, the incomes of the elongation of the larger 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 task of the oil will face high competitions, and deficiency to pinpoint novel profit growth point.

General manager of the plot to extend the oil-yiu have said that in 2009 the extension of 300 billion yuan of oil, the oil exploration and development to be 10.4 billion, most of the remaining items will be placed on the chemical industry.

With the east and southerly China in dissimilar 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 none million tons of very many 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.