In recent years, Sinopec carried out policy of combining construction with application while emphasizing application. Setting system application esp. ERP application as the core, the Company energetically conducted IT construction and application. Work of deepening ERP application, which main purpose is to reach the standard, was widely expanded. Achievements were made in construction and application of key information systems like production and operation commanding system, and whole budget management system in headquarters. IT application was also deepened in subsidiaries, which played an important role in supporting business development, deepening reform, promoting management innovation, saving energy and reducing emission, realizing cost-reduction while profit-increase and optimizing resources.

Application of ERP system has mounted up to stance in 2008. From 2001, Sinopec comprehensively conducted IT construction with mainstream of ERP and has achieved important progress. By end 2008, ERP systems have been successfully applied to 81 branches and subsidiaries both upstream and downstream. Meanwhile, application of ERP proved to be effective. ERP plays a positive part in sales companies' market standardization and realized online control over business expenses; refining subsidiaries’ product management for independent sales, cash, procurement and maintenance management; oilfield companies' financial statement consolidation, material procurement, storage management, investment supervision as well as down-hole operation, etc. The application of ERP system plays a vital role in leveraging headquarters' supervision, supporting subsidiaries' reform in operational mechanism.

Application of the Production & Operation Commanding System

This system enables our headquarters to timely trace the status of production, sales, storage and operation of our four business segments (E&P, Refining, Chemical and Marketing) and keep track of crude purchase and transportation performance. Commanding system for crude scheduling is integrated with the refining and oilfield operation scheduling system; production scheduling and command system for refineries (Phase 2) is initiated in full swing, expanding the scope of supervision; production scheduling and command system for chemical plants covers the Chemical Dept. , its chemical subsidiaries and production units with data details plate numbers of units and specific materials, realizing efficient management of energy consumption in chemical plants from headquarters for the first time; logistic system for oil products enables data acquisition and supervision for products’ in-and-out and raw material procurement as well as storage data acquisition, search and analysis for oil depot and refineries of provincial and municipal level. Yizheng-Changling crude distribution management information system is completed and compatible with the Ningbo-Shanghai-Nanjing system.

Popularization of the comprehensive budget management system in the refining sector

An index system framework for integrated refining and chemical operation has taken an initial shape with comprehensive budget software developed independently widely applied in refineries and chemical plants. Refineries and chemical plants realized online compiling, approving, filing, replying and announcing for both annual and monthly budget; a production and operation surveillance module is completed in refineries with ERP system, which help realize supervision and analysis of such index data as profit, expense and cost.

Deepened supply chain application

Over years of construction, a supply chain management system covering crude procurement, transportation, processing and scheduling and transportation of refined products plays an important role in achieving cost effective production. A production scheme and an effectiveness evaluation system are widely used in monthly progressive operative scheduling to enhance accuracy of scheme compiling and transparency of scheme management; integrated refining and chemical modeling enterprises are commissioned with enhanced crude and feedstock flexibility and management.; freight settlement functions of logistics are further improved with more accurate and timely data.

IT system application at subsidiaries

Oilfield subsidiaries conducted E&P data module standardization research, source data acquisition and pilot data center construction work; proprietary software with proprietary intellectual property rights is further promoted; real-time remote surveillance of key drilling performance is realized by utilizing the Ku satellite; comprehensive energy consumption in oilfield output is reduced through pilot water flooding and storage & transportation optimization projects. R&D of production execution system software with proprietary intellectual property rights achieve great success with enhanced property, stability and compatibility; advanced control system is put into operation to improve control and stability of production units with lower energy consumption and high product quality; production scheduling system is brought into operation in subsidiaries like Qilu and Yanshan petrochemical, realizing operative scheduling from feedstock input and processing to output. Sales subsidiaries accurately and timely reported management and operation data of service stations though electronic retail statement management system, meeting demands for comprehensive management and operation analysis at various levels. Application of electronic sales b/l system improves the security of transactions, business process and service quality. Ever-increasing volume of issued IC fuel cards brings convenience to customers with improved service.