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76-522: The field is estimated to have reserves of up to 17 billion barrels (2.7 km) of oil, with 3 billion barrels (0.5 km) considered to be recoverable. On October 29, 2004, Iran negotiated a $ 70 billion deal with Sinopec , giving the Chinese company a 51% stake in the field's development. As part of the deal, China agreed to buy 10 million metric tons of liquefied natural gas (LNG) from Iran per annum for 25 years. In December 2007, NIOC and Sinopec signed

152-551: A "memorandum of agreement aimed at showing the parties' desire to develop exploration, exploitation, refining and export activities of oil products". Three onshore fields were to be explored. One of the three blocks, LT2000, is some 200 kilometers (120 mi) southeast of Gabon's economic hub, Port Gentil , which lies south of the capital, Libreville , on the Atlantic coast. The other two — DR200 and GT2000 - are around 100 kilometres (62 mi) northeast of Port Gentil, according to

228-511: A 30 percent stake in the Brazilian unit of Galp Energia SGPS SA which owns the rights to biggest discovered oil reserve in the western hemisphere since 1976. This brought the total investment of Chinese energy companies in foreign oil assets for the year to $ 16 billion. Sinopec reinvested in Indonesia in 2011 by partnering with Chevron on a deep water drilling operation. The project is located in

304-498: A 60% stake in AED Oil . AED was heavily indebted at the time of the purchase in part due to the Puffin oil fields producing less than expected. Sinopec took over operation of these fields after the sale. In 2009, Sinopec acquired Addax Petroleum Corp for $ 7.24 billion. This was the largest foreign purchase by a Chinese company. Addax was producing an average of 136,500 barrels per day. Addax

380-454: A 90% excess profits tax on energy companies. The Greek energy minister justified this decision by stating, "Our primary concern is to maintain affordable prices on consumer bills until the end of this major, pan-European energy crisis." The tax revenues were used to subsidize energy prices. In November 2022, the Dutch government introduced a temporary windfall tax as a strategic response to mitigate

456-677: A NIO Power Swap Station 2.9 would be put into the Sinopec Chaoying Station in Beijing. Additionally, the partnership was to include cooperation between the two companies in new materials, smart EV technology, Battery-as-a-Service (BaaS), construction of recreational facilities, as well as the purchase of vehicles . In November 2021, U.S. producer Venture Global LNG signed a twenty-year contract with Sinopec to supply liquefied natural gas (LNG). In January 2022 they offered to re-sell LNG to take advantage of high Asian spot prices. Following

532-657: A billion barrels of crude reserves and a trillion cubic feet of natural gas reserve. However, the Syrian investments became significantly less valuable in 2012 when the Syrian civil war began. The turmoil forced Sinopec to stop regular operations in Syria. The company negotiated with several parties in Syria on multiple occasions in an attempt to restart operations. Sinopec also began investing in Australia in 2008 with its $ 594 million purchase of

608-537: A capacity-based tax. While neither are windfall taxes, they were raised in 2008 due to higher windfall profits. In 2009, Norway, where hydro-electric power plants supply 99% of the country's electricity, similarly imposed a ground rent tax on hydro-electric power plants to reduce their profits by 30%. Mongolia implemented in 2006 taxation on the profits made by mining companies operating in Mongolia . A tax on unsmelted copper and gold concentrate produced in Mongolia, it

684-573: A consortium whose partners also include China National Petroleum Corporation and Sudapet (the Sudanese state-owned oil company), among others. In 2005, Petrodar commenced production of oil in blocks 3 and 7 in South-east Sudan and transported them via its new pipeline. Petrodar's operations represent a major increase in overall Sudanese oil production. Sinopec is also looking into other companies such as ERHC Energy which has multiple oil block assets in

760-623: A goal of building 5000 new EV charging stations by 2025 and plans to cooperate with BP on achieving that goal. These and other of Sinopec's environmental goals are aligned with the Fourteenth five-year plan . Sinopec has demonstrated a willingness, characteristic Chinese national oil companies, to invest in foreign, often risky, infrastructure. These firms work in concert with the Chinese state owned financial sector via direct low cost financing and indirect infrastructure agreements between foreign nations and Chinese banks. Several experts claim that

836-702: A large impact on Chinese foreign policy and Chinese oil companies put a higher priority on mergers and acquisitions in the following years. According to the OECD, foreign oil ventures are an attractive investment for Chinese national oil companies because China is a large importer of oil and wants to control its supply chain. Some Chinese observes agree with this assessment and highlight Sinopec's 2005 goal of importing 15 million tons of crude oil for refinement in China. China's Go Out policy explicitly stated, in 2001, that Sinopec should "make effective use of overseas resources, build

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912-574: A new ethylene plant in Wuhan at the end of 2012. The construction of this plant was done as a joint venture with the South Korean SK Group. This facility was planned in alignment with the National Development and Reform Commission 's goal of producing more ethylene domestically in order to rely less heavily on foreign imports. It will provide 800,000 tons/year which is a significant step towards

988-458: A research agreement with Baoshan Iron & Steel Co. for the construction of China's first open 10 million tonne open carbon capture, utilisation and storage (CCUS) facility. In September 2023, Sinopec used a tender to purchase 30 cargoes of LNG from more than 10 suppliers for additional supply to begin in October 2023. This additional supply helped China during the winter months as well as offset

1064-552: A state mandated asset swap with China National Petroleum Corporation (CNPC) which gave some of Sinopec's refineries to CNPC in return for Sinopec acquiring some of CNPC's upstream assets. BP partnered with Sinopec, in 2005, to build SECCO an ethylene derivatives plant with an initial investment of $ 2.7 billion. It is located in the Shanghai Chemical Industry Park, and generates over 3.2 million tons of petrochemical products annually. In 2017, Sinopec bought out

1140-777: A tool for efficiently taxing economic rents , which are often a result of monopolistic power or unexpected events like pandemics, war, or natural disasters, and contribute to windfall profits. Such profits have raised public and policy concerns about price gouging , where firms are perceived to be profiting excessively from unforeseen circumstances. Eric Levitz argues that these taxes are worth pursuing as it would incentivize producers to invest in lowering prices during times of supply shocks by expanding production instead of giving out dividends to shareholders. In 2022, Joseph Stiglitz argued for windfall profit taxes for oil and gas in Australia to disincentivize raising prices. In 2022, an informal survey of 33 American and European economists at

1216-470: A windfall profits tax on energy sources like coal . Polling by the Australia Institute as well as Oxfam showed more than two-thirds of Australians supported windfall profit taxes. For fiscal years 2022 and 2023, The EU asked energy companies to return 33% of taxable surplus profits to governments to help fund energy affordability and address shortages. Rapid drop of photovoltaic equipment in

1292-565: Is a Chinese oil and gas enterprise based in Chaoyang District , Beijing . The SASAC administers China Petroleum and Chemical Corporation for the benefit of State Council of the People's Republic of China . China Petroleum and Chemical Corporation operates a publicly traded subsidiary, called Sinopec, listed in Hong Kong and Shanghai stock exchanges. China Petroleum and Chemical Corporation

1368-548: Is a vice minister. This is a political appointment set by the Ministry of Personnel. This means that the post is always given to high ranking communist party members as a reward for career achievement in the industry. Due to the high ranking nature of Sinopec's leaders in the communist party the party does not have total control over the company and the company can exert influence on the government to get support in financing, international agreements, and pricing. For example, even though

1444-629: Is also a part owner of the joint venture POLY-GCL Petroleum, which as of 2023 is developing a $ 4 billion natural gas project in Ethiopia, which will include a pipeline to the Djiboutian coast and an export terminal. According to David H. Shinn and academic Joshua Eisenman, the Ethiopian project underscore China's commitment to expanding its import of liquified natural gas from African countries. The chairman of Sinopec, like all Chinese National Oil Companies,

1520-535: Is strategically aligned because Saudi Aramco produces a heavier crude oil which is not preferable for other Chinese refining facilities. Aramco, Exxon and Sinopec also signed contracts for a fuel marketing venture that will manage 750 service stations and a network of terminals in Fujian province. Their subsidiaries also expanded cooperation in Tianjin the following year. They invested over $ 3 billion from 2008 to 2019 expanding

1596-563: Is that the partners will only agree the target capital cost of the development following receipt of construction tender submissions. This should reduce the contractors’ exposure to value erosion through cost inflation. The oil field is currently at an early production of 16,000 bbl/d (2,500 m/d) after 16 months development by the Chinese contractor. 30°59′18″N 48°02′32″E  /  30.988352°N 48.042355°E  / 30.988352; 48.042355 Sinopec China Petroleum and Chemical Corporation , or Sinopec ,

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1672-604: Is the world's largest oil refining conglomerate, state owned enterprise, and second highest revenue company in the world behind Walmart . Sinopec Limited was established as a joint stock entity under the China Petrochemical Corporation Group (Sinopec Group) in February 2000. The company was simultaneously listed in Hong Kong, New York, and London in October 2000. The IPO raised $ 3.5 billion. A Shanghai listing

1748-414: Is to be built in the south of the country, at Hambantota port . Unipec, a subsidiary of Sinopec, signed a contract with French oil company Total Gabon in February 2002. Under the contract China, for the first time, bought Gabonese crude oil. During his African visit, in 2004, Chinese President Hu Jintao signed a series of bilateral trade accords with his Gabonese counterpart Omar Bongo , including

1824-457: The 2022 Russian invasion of Ukraine the company continued doing business in Russia. For this reason Ukraine listed Sinopec as an International Sponsors of War . Unipec, a subsidiary of Sinopec, is an intermediary for banned Russian oil . China's imports of U.S. natural gas will more than double. In March 2022, a memorandum of understanding was signed between Sinopec and Aramco to strengthen

1900-532: The IGM forum found majority support for taxing windfall profits. In 2023, a group co-directed by Thomas Piketty suggested taxing windfalls from excess profits. As of 2023, Isabella Weber has also been advocating for windfall profit taxes. A 2008 Wall Street Journal editorial argued that income taxes incentivize companies to make more profits which results in more tax revenue. A 2022 Reason article argued against windfall taxes. Queensland, Australia has

1976-524: The Kutai Basin and has access to 15 million barrels of crude oil reserve and 700 billion cubic feet of natural gas. The deal closed with Sinopec getting an 18% stake for $ 680 million. This project aligned with China's goal of doubling gas' share of energy production during the 2009-2015 period. An existing base of joint ventures between BP and Sinopec was expanded via cooperative bunker fuel projects. These operations were then expanded in 2015. Bunker fuel

2052-671: The Ogaden National Liberation Front (ONLF), later released the seven abductees and warned foreign companies against working in the area. Sinopec said it had no plans to pull out of the resource-rich region despite the attack. Chinese Foreign Ministry spokesperson Liu Jianchao says that China strongly condemns the violent attack carried out by Somalian insurgents on the premises of the oil company Sinopec in Ethiopia. On 31 October 2011 Sinopec Addax acquired Shell 's 80% share of an exploration firm called Pecten that explores and drills in various offshore locations including

2128-512: The "one profit, five rates" method in 2023. This method calls for assessing the company's performance with profit, "asset-liability ratio, return on equity, operating cash ratio, overall labor productivity, and R&D investment intensity". In February 2007, Saudi Aramco and Exxon signed a deal with Sinopec to revamp the Fujian oil refinery and triple its capacity to 240,000 barrels per day (38,000 m /d) by 2009. The Saudi Aramco investment

2204-739: The Angolan government blocking a deal between Shell and India's Oil and Natural Gas Corporation in favor of a deal with Sinopec. Unipec first became involved in Ghana in December 2011 when Ghana National Petroleum Corporation agreed to supply 13,000 barrels of oil per day for the following 15 years in return for the Master Facility Agreement. The MFA was a $ 3 billion six year loan from CDB which Ghanaian President Mills and Hu-Jintao directly negotiated on. The MFA also required Ghana to spend most of

2280-545: The Gabonese national parks council. In 2007, Sinopec redid its earlier environmental study, this time in conjunction with the Gabonese environmentalist group Enviropass and the World Wildlife Foundation, winning high marks from Gabonese, Western, and Chinese conservation experts. Shortly thereafter, Sinopec resumed production with more environmentally friendly methods. On 21 December 2006, gas started leaking during

2356-557: The Gabonese oil ministry. In 2013 and 2014 Sinopec and the Gabonese government had significant disputes over licensing and fees. The Gabonese government nationalized one of the oilfields that Sinopec was previously licensed to extract from. Ultimately negotiations between the parties resulted in new leases for Sinopec's further extraction. In 2004, the Export–Import Bank of China signed a $ 2 billion loan with Angola to finance infrastructure projects by Chinese companies. This led to

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2432-457: The IMF recommend implementing permanent windfall profit taxes on fossil fuel extraction but not temporary taxes or taxes on renewable energy . The taxes should always target a clear measure of excess profits and not be tied to price levels or revenue. They also recommend ensuring that markets can add new capacity quickly if-needed to avoid a spike in prices. Another 2022 IMF paper argues these taxes are

2508-570: The Joint Development Zone. When South Sudan seceded it took most of Sudan's oil reserves with it. The Petrodas pipeline is used to transport South Sudan's oil for export in Sudan. In 2024, fighting in the vicinity of Singa, Sudan halted the flow. In 2007, in eastern Ethiopia 's Ogaden Desert, a raid by an ethnic Somali rebel group on a Sinopec drilling site left 74 dead including 9 Chinese oil workers, and 7 kidnapped. The rebels,

2584-462: The Ministry of Finance collects windfall tax on upstream profits. At the beginning of 2006, Chinese retail gasoline and diesel sales were not profitable for Sinopec and sales were hurting the company's financials. To pressure the NDRC, Sinopec and CNPC cut production causing long lines at the pump. This lead to NDRC approving a 15% increase in the price at the pump. To offset losses from the price controls,

2660-534: The NDRC's 2015 goal of raising domestic production by 7.5 millions tons/year. In March 2013, Sinopec agreed to pay $ 1.5 billion for its parent company's overseas oil and gas-producing assets. Due to the COVID-19 pandemic , Sinopec reported a loss of 23 billion yuan in the January to June time frame of 2020. In 2021, they reported a 22% increase in revenue as the demand for fuel and oil slowly returned to normal. In 2022,

2736-544: The OCP pipeline which can pump 450,000 barrels per day. It was the largest petrochemical deal in Ecuadorian history. Beginning in 2012, Chinese banks began large financing agreements with Ecuador to pre-pay for oil procured via Andes Petroleum. In 2006, locals occupied and stopped work at an Andes Petroleum facility to demand the company create 400 local jobs. Andes Petroleum is required to pay profit sharing to its employees. In 2009

2812-544: The State Council to hold Sinopec's leaders personally responsible if risky investments cost the government financially. In 2004, Sinopec prospected for oil in the 1,550 square kilometers of Loango National Park in southern Gabon and encountered criticism for what domestic and foreign environmental critics said were poor and damaging methods. Primatology professor Christophe Boesch of the US-based environmental organization,

2888-536: The Syncrude deal is partly explained by a desire to acquire technical knowledge on oil sands extraction which can be used to boost domestic oil production. Sinopec invested $ 7.1 billion in Repsol Brazil to begin a new partnership in 2010. Chinese observers note that part of Sinopec's motivation for the deal was to bring deep water drilling expertise to China. In 2011, Sinopec additionally invested $ 5.2 billion for

2964-818: The Wildlife Conservation Society (WCS), criticized the use of dynamite and heavy machinery in exploration and road construction by Sinopec through park, noting that it might drive native gorillas deeper into the jungle, where they would be outside legal restrictions on hunting. Gabonese law states that industries can extract oil from national parks, but must rehabilitate them to the prior condition. Boesch, and other international experts, have suggested that Sinopec use other methods such as horizontal drilling to minimize its environmental footprint. Sinopec's activities in Gabon's national parks were suspended in September 2006, by

3040-407: The already existing ties between the companies and to improve their downstream operations. In April 2023, an agreement was signed between Sinopec and QatarEnergy , making Sinopec the first Asian buyer to participate in the eastern expansion of Qatar 's North Field liquefied natural gas project, with a 5% stake in an 8 million tonnes per year LNG train . The contract has a 27-year term making it

3116-555: The company announced acquisition of Conoco Phillips's 9% stake in the Canadian oil sand firms, Syncrude , for $ 4.65bn. While largely welcomed by industry, Sinopec's Syncrude stake has raised concerns about the influence the Chinese government may try to exert on Canadian policy makers. The following year, Sinopec took over Daylight Energy for C$ 2.2 billion ($ 2.1 billion). Daylight was then renamed Sinopec Daylight Energy Ltd. . The OECD and Chinese observers note Sinopec's attraction to

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3192-447: The company reported a 25% net income increase in the first quarter. Diesel output was increased by almost 10% that year and the gasoline production saw only a 0.7% increase. The Hainan Baling Chemical New Material Company, a Sinopec subsidiary in Hainan , opened a one million tonne per year Styrene-butadiene (SBC) plant in 2023. This new facility made Sinopec the largest producer of SBC in

3268-635: The company was fined $ 16 million for not including contractors in the profit sharing agreement. The company had made the correct total amount of payouts but not distributed them to enough people. Ecuador conducted major oil industry reforms in 2007 and 2010 which promoted many international oil companies to exit the Ecuadorian market. Sinopec, on the other hand, remained. As part of these reforms, Ecuador required that local labor be used for over 90% of unskilled and administrative positions. This put an end to further disputes about local job creation. International observers note that Andes Petroleum's operations were among

3344-642: The decontrol of crude oil prices . The Act was intended to recoup the revenue earned by oil producers as a result of the sharp increase in oil prices brought about by the OPEC oil embargo . According to a report by the Congressional Research Service , the Act's title was a misnomer as it was just an excise tax imposed on the difference between the market price of oil and a 1979 base price adjusted for inflation and severance taxes . The report also stated that

3420-577: The drilling of a test well by the Sinopec Southern Prospecting and Development Branch in Quingxi. 12,380 people were evacuated after the leakage occurred. It took at least three attempts and two weeks for the company to seal the leak. Windfall tax A windfall tax is a higher tax rate on profits that ensue from a sudden windfall gain to a particular company or industry . There have been windfall taxes in various countries across

3496-535: The energy sector. Finland announced its intention to tax windfall profits at large nuclear and hydro plants built before 1997 by 2010 or 2011. As non-CO2 emitting electricity generators, these plants have all seen their profits increase because of the European Union Emissions Trading System . As of 2009, in Sweden, hydroelectricity is subject to a property tax and nuclear power plants to

3572-469: The ethylene production capacity multiple times and finally achieving 1.3 million tons per year of production. In Fujian, Sinopec also operates the Gulei Industrial Park. It began as a joint venture with a group of Taiwanese companies operating as Dynamic Ever Investments in 2015. The venture took $ 4 billion of investment and has a production capacity of 1 million tonnes of ethylene per year. At

3648-552: The final agreement for development of Yadavaran oil field. Based on the contract field will reach to the 180,000 bbl/d (29,000 m/d) of production capacity. Sinopec will be operator with a 51% stake in the project and NIOC holding the remaining interest. Total project cost at around US$ 2 billion. In a third phase the field is expected to reach 300,000 bbl/d (48,000 m/d) of production capacity. The field will be developed under an enhanced Iranian buyback contract. The most significant revision in terms from earlier versions

3724-577: The funds on projects constructed by Chinese contractors. Unipec was awarded the first $ 750 million of these funds to build the Atuabo Gas Plant . In 2013, Unipec halted work on the project to pressure Ghana into making amendments to the MFA that CDB had requested. By 2014, Ghana had only received $ 600 million of the promised MFA funds. Sinopec is a partner in Petrodar Operating Company Ltd.,

3800-608: The government of Tony Blair introduced a Windfall Tax for privatised utility companies. In May 2022, Rishi Sunak introduced the tax for energy companies extracting oil and gas in the UK, to help fund a package to relieve the UK cost of living crisis . The Crude Oil Windfall Profit Tax Act of 1980 (P.L. 96-223) was part of a compromise between the Carter Administration and the Congress over

3876-444: The impact of surging energy prices. This 33% tax targets companies operating within the oil, natural gas, coal, and petroleum refining industries. The tax applies to profits that exceed the average profit margins of these sectors by more than 20% during the reference period from 2018 to 2021, as specified by the ministry. This measure is intended to buffer the financial shock experienced by consumers and stabilize market fluctuations in

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3952-471: The investment due to sanctions, but Iran claims that pressure did not delay the deal. Iran expressed pleasure with the deal and stated the goal of replacing Japan with China as the primary exporter of Iranian oil. There is little agreement about the exact amount of oil and gas available through the Yadavaran project, but all claim that it is a large oil field by global standards. The first phase of drilling

4028-484: The lacking supply from Venture Global. On 17 October 2023, an equity agreement was signed between Sinopec and KazMunayGas JSC for a 30% stake in a $ 7.7bn polyethylene project in Kazakhstan , which is expected to start construction in the second half of 2024. At the sixth annual China International Import Expo (CIIE) on 4 November 2023, Sinopec signed various purchase agreements totalling $ 40.3 billion, one of those

4104-477: The local population than EnCana did. Most of the planned expansions were halted in 2019 when opposition from environmental activists and small indigenous tribes prompted Ecuadorian courts to find that the tribes had not been properly consulted. In 2006, Sinopec withdrew from its operations in Indonesia, but began operations in Russia with a Rosneft partnership. The companies invested in Sakhalin-III and oil

4180-540: The longest ever purchase agreement for LNG. At the end of June 2023, Sinopec Overseas Investment Holding was established as a vehicle for investment, construction and operation of overseas refineries. Overseas investments at the time amount to 400,000 barrels per day at the Yasref refinery, as well as the $ 10 billion Amur Gas Chemical Complex in East Siberia . In August 2023, Sinopec, together with Shell and BASF , signed

4256-463: The most successful in Ecuador through 2014. This success prompted an expansion of its operations. The company has generally had better relations with the local population than EnCana did. International observers note that Andes Petroleum's operations were among the most successful in Ecuador through 2014. This success prompted an expansion of its operations. The company has generally had better relations with

4332-407: The oil basin near Douala , Cameroon in cooperation with TotalEnergies . In June 2013, Sinopec agreed to acquire Marathon Oil Corp's Angolan offshore oil and gas field for $ 1.52 billion. In Angola, as of at least 2023, Sinopec is a part minority owner of several offshore projects via Sinopec's half ownership of a joint venture with the private company Sonangol Sinopec International. Sinopec

4408-583: The overseas oil and gas supply bases and diversify the oil imports". This was revised in 2006 to "broaden international oil and gas cooperation". According to the company, in 2022, foreign operations were staffed 74% by local workers rather than Chinese employees. Sinopec began its partnership with Iran in 2001, and signed a 30 year deal to invest $ 70 billion in the development of Yadavaran Field in 2004. Contract negotiation for this program took three years such that technical work and funding did not actually begin until 2007. The US pressured China to block

4484-565: The period 2011 to 2013 has created windfall profits conditions due to lagging response of regulators by adjustment of feed-in tariffs. Regulators in Spain, Greece, Bulgaria and Romania have introduced retroactive incentive reductions. In the Czech Republic a windfall tax has been introduced on solar electricity and further clampdown of solar power companies was considered in 2014. In November 2022, Greece responded to soaring energy prices by imposing

4560-528: The remainder of BP's stake in SECCO through its Gaoqiao subsidiary for $ 1.68 billion. Gaoqiao's operations predate the creation of Sinopec and it operates 75 plants for producing finished petroleum products such as fuels, oils, organic compounds. Ineos bought out half of Sinopec's share of SECCO in 2022 as part of a broader partnership deal. Sinopec operates the Jiujang Petrochemical Complex which

4636-573: The role of direct financing support is not as important as indirect support. Large foreign purchases are particularly notable in the Chinese context because they require approval by the National Development and Reform Commission and the State Council. Sinopec made failed attempts to acquire Iranian oil reserves in 2001 and Kazakh reserves in 2003. In subsequent years, Sinopec relied more heavily on off-taker agreements to gain access to foreign markets. The 2007–2008 financial crisis made

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4712-551: The state gave Sinopec $ 1.1 billion in subsidy during 2005 and $ 647 million in 2006. This finance example demonstrates of Sinopec's implementation of policy adjusted profit. Chinese methods on how to articulate, quantify, and report the sometimes conflicting interests of profit and political policy have evolved during over time. Some commentators on the Shanghai Stock Market, where Sinopec trades, call these methods "valuation with Chinese characteristics". Sinopec demonstrated

4788-527: The state owns Sinopec, the company did not pay the state any dividends until 2008. Sinopec also appoints a member to the Central Committee of the Chinese Communist Party . Chinese officials have seen some of Sinopec's investments as too politically risky. The Iran and Sudan oil partnerships in particular led to regulatory change by State-owned Assets Supervision and Administration Commission of

4864-484: The time of its approval it was the only Taiwanese petrochemical joint venture in mainland china. It was approved by the Fujian branch of the NDRC which owns a 25% stake in the project. The plant began producing downstream chemicals in 2018 and became fully online in 2021. Phase two began, in 2024, when Saudi Aramco made an additional $ 9.8 billion investment in the facilities. These expansions are scheduled to be fully operational in 2030. Sinopec completed construction of

4940-559: The world at the time. Sinopec began operating the deepest oil well in Asia in 2023. As part of Project Deep Earth the drill went 9432m below Xinjiang . Sinopec and BP have worked together since Sinopec formed. Their joint venture in Zhejiang had 2024 gas stations in 2021. They signed a memorandum of strategic cooperation with BP at the Davos Economic Forum in 2024. Sinopec has set

5016-480: The world, including Australia, Italy, and Mongolia (2006–2009). During the 2021–2023 global energy crisis , policy specialists at the International Monetary Fund recommended that governments institute permanent windfall profits taxes targeted at economic rents in the energy sector, excluding renewable energy to prevent hindering its further development. Thomas Baunsgaard and Nate Verson of

5092-529: Was a 27-year purchase deal with QatarEnergy for LNG. In November 2023, Sinopec was charged an annual fee of $ 2 million by the Sri Lankan government due to new fuel distribution regulations. Also in November, Sinopec was approved for the $ 4.5 billion refinery proposal for Sri Lanka . With the investment, it will be the third company with ties to Sri Lanka and the rights to operate 150 petrol stations. The refinery

5168-432: Was based in Geneva at the time, but the Geneva office was closed in 2017 after Sinopec agreed to pay $ 31.8 million to settle a Swiss bribery investigation of their operations in Nigeria. Sinopec claimed the office closure was due to low oil prices. The alleged bribes stemmed from a tax dispute between Sinopec Addax and the Nigerian government. Both sides claimed they had not received their fair share of benefits. The dispute

5244-488: Was completed in 2012 and production continued to expand. Sinopec claims to have ceased buying this oil due to US sanctions in 2019. Sinopec established its first drilling rig in Saudi Arabia in 2000. In 2004, Sinopec began exploring in Saudi Arabia. In 2005, Sinopec and CNPC jointly purchased EnCana an Ecuadorian Petrochemical company for $ 1.42 billion. The purchase gave the joint venture, called Andes Petroleum Company, access to over 62,000 barrels per day of crude and

5320-434: Was completed in June 2001. Prior to its operation as a company Sinopec's assets came from the Ministry of Petroleum Industry and the Ministry of Chemical Industry which partially privatized in the 1980s. Given its legacy asset base from Sinopec Group, analysts have categorized it as a more downstream oil player than PetroChina . However, since 1998 Sinopec has expanded into upstream endeavors. This expansion began with

5396-404: Was delivered to ports in Singapore , Fujairah , Antwerp , Rotterdam , Amsterdam , Tianjin , Qingdao , Shanghai , Ningbo , and Shenzhen in 2020. Sinopec Addax made a $ 1.5 billion investment in North Sea drilling operations in 2012. The investment was rebranded multiple times. Originally, the deal was with Talisman Energy and Sinopec exited this investment after a dispute with Repsol

5472-517: Was first drilled in 2006. Rosneft expanded its cooperation with Sinopec in a joint venture called Udmurtneft. They acquired access to 551 million barrels of proven reserves and facilities capable of producing 120,000 barrels per day. The entirety of the deal was financed by Sinopec, but the total price was not disclosed. The sellers claimed offers were $ 4 billion. In 2008, Sinopec bought Tanganyika Oil for $ 2 billion giving Sinopec access to its Syrian oil fields. These fields were reported to have over

5548-556: Was originally constructed in 1975 and has received a series of improvements over time. The refinery processes 8 million tonnes of crude oil per year. Xi Jinping visited the refinery, in 2023, when the company highlighted the importance of Socialism with Chinese characteristics and presented awards. Sinopec posted a 6.8% operating margin for the 2006 financial year. Profit was limited in part by government price controls on downstream petrochemical products. The National Development and Reform Commission sets gasoline and diesel prices and

5624-578: Was settled for $ 2.1 billion. The dispute began in 2015 over amounts paid by Sinopec and was settled in 2023. In 2013, company sold a 30 percent stake of an oil and gas block in Myanmar to Taiwan's CPC Corp. This was followed by Sinopec's acquisition of a 33% stake in Apache Corporation ’s oil and gas business in Egypt for $ 3.1 billion. In 2021, Sinopec began a partnership with NIO , when they unveiled that

5700-564: Was settled in 2015. Addax's resources were concentrated in West Africa and Kurdistan . Sinopec's assumption of the agreements with the Kurds created difficulty in forming new agreements with the Iraqi government because Iraq has a long standing policy against dealing with anyone who makes agreements with the Kurds. However these issues did not spread to other Chinese energy companies. On 13 April 2010

5776-458: Was the highest windfall tax in the world. The tax was repealed in 2009 and phased out over two years. Repealing the 68% tax law was considered essential to enable foreign mining companies to invest in mineral resources development of Mongolia. In the United Kingdom , an early one-off windfall tax was levied on certain bank deposits as part of the 1981 budget under Margaret Thatcher. In 1997,

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