Sinopec North China Company (hereafter abbreviated as “the Company”)£¬established in May, 2002, is a branch company of China Petroleum and Chemical Corporation (SINOPEC Corp). Its predecessor was North China Bureau of Petroleum and Geology under the Ministry of Geology and Mineral Resources. The Company involves in integrated oil and gas exploration and engineering operation with a strong exploration strength and history of about 50 years in 22 provinces (municipalities or autonomous regions) of China and played a strategic pioneering role in the discoveries of nine large and medium-sized oil and gas fields like Daqing Oil Field, etc. The Company made a tremendous historic contribution to the growth of China’s petroleum and petrochemical industry.

The year 2006 witnessed a sound growth and new reinforcement of the Company. Under the leadership and complete support of Sinopec and by mobilizing the energies and initiatives of all employees, the Company over-fulfilled all the operating objectives in an all-round way. The staff’s incomes and living standards were rising, the work conditions were improved. This greatly enhanced the Company’s image and prestige both inside and outside the Sinopec.

In 2006, the Company newly added about 13.3 billion cubic meters of proven gas reserves, 41.4 billion cubic meters of controlled gas reserves and 51.5 billion cubic meters of forecasted gas reserves. By the end of 2006, the Company had an accumulation of 306.6 billion cubic meters of proven gas reserves, 143.8 billion cubic meters of controlled gas reserves and 218.8 billion cubic meters of forecasted gas reserves. The accumulated 3-Grade natural gas reserves amounted to 669.2 billion cubic meters, which provided a solid resource foundation for the Sinopec’s development of energy strategies and for the Company’s targets of gas productivity construction of 3 billion cubic meters. In 2006, the Company newly added about 2.95 million tons of proven oil reserves, 2.97 million tons of controlled oil reserves and 6.76 million tons of forecasted oil reserves. By the end of 2006, the Company had an accumulation of 5.46 million tons of proven oil reserves, 4.49 million tons of controlled oil reserves and 15.89 million tons of forecasted oil reserves. The accumulated 3-Grade oil reserves reached 25.84 million tons.

The Company’s saw an all-time high oil and gas output reaching 1.16 million tons of oil equivalent in 2006, this placed the Company among producers with annual oil and gas production exceeding one million tons.

In 2006, the Company fulfilled its gas sale targets 18 days ahead of planning. On April 20, 2006, the Company successfully started to supply gas to Beijing Yanshan Petrochemical Company Ltd., a holding subsidiary of Sinopec, this contributes to Sinopec’s implement of “Cost Saving” strategies; On May 10, 2006, the Company began to transport gas to Shangdong Province, this expands its market presence and helps Sinopec establish an image of powerful enterprise; On December 8, 2006, the Company realized its promise of pipeline gas transportation to Zhengzhou City, Henan Province, this overcomes the gas supply constraints of the city.

The Company was on the top of Sinopec’s increasing list in 2006 by adding its gas productivity of 461 million cubic meters with accumulated gas productivity reaching 1.593 billion cubic meters. Also, in this year, the Company saw an increasing crude oil productivity of 26 thousand tons.

Significant progress has been accomplished in science and technology advancement. The Company enhanced innovation and promoted the application of technologies in gas exploration to ensure 85% success of gas exploration wells and 95% success of gas development wells. This greatly accelerates the discovery and supports the development of Daniudi Gas Field in Erdos Basin. “Reserving Trend and Exploration and Development Technology of Daniudi Gas Field” project has won the First Class Science Advancement Prize of Sinopec.

The principles of the Company in 2007 is “Develop Oil and Gas Simultaneously and Coordinately” to strive for the realization of exploration and development targets. Exploration target is to increase gas reserves by 20 billion cubic meters of proven gas reserves, 50 billion cubic meters of controlled gas reserves and 50 billion cubic meters of forecasted gas reserves, and to increase oil reserves by 2 million tons of proven oil reserves, 2 million tons of controlled oil reserves and 2 million tons of forecasted oil reserves. Development target is to produce 1.55 billion cubic meters with gas sales of 1.5 billion cubic meters and adding gas productivity of 1.5 cubic meters, and to produce 109 thousand tons of crude oil and adding 15 thousand tons of oil productivity.

 

Contact:
Address: 197 Southern Section of Funiu Road, Zhengzhou, Henan 450006
Fax: 0371-68612902
Tel:   0371-68629220  68629519
Email: HBJ220@public2.zz.ha.cn