International Operation

The Company’s international operation scored fruitful results in 2010. We actively seized the post-financial-crisis opportunities, making steady progress in M&A of overseas upstream assets, petroleum engineering services and EPC services for refineries and chemical plants with high-tech content, as well as new breakthroughs in international trade. By 2010, our overseas assets, sales revenue and profit accounted for 31%, 27% and 14% of the Company’s total respectively, ranking Sinopec among international energy and chemical companies.

Overseas Oil & Gas E&P

We seized the opportunities to develop new projects. We signed 9 new projects in 2010, and closed the deal for 9.03 equity transfer of Syncrude project in Canada. Overseas oil and gas resources expanded rapidly. In 2010, overseas equity crude production reached 18.4 million tons, up by 43.9 y-o-y.

Overseas Petroleum Services

We aimed to expand overseas market, providing high-end and comprehensive services to grow stronger. We have maintained stable market share in the Middle East, Africa, Latin America and Central Asia. By end 2010, 448 service contracts were executed in 35 countries valued USD9.48 billion. Newly-signed contract value in 2010 hit USD2.84 billion, contract completed valued at USD2.64 billion. Today, we have 382 service teams and 18,764 people working overseas.

Overseas Refining and Chemical Engineering Services

In 2010, we worked on 11 refining and chemical engineering projects in Saudi Arabia, Kazakhstan, etc. with contract value totaled USD5.5 billion. 7 projects including Yanbu HDPE and Kayan EO/EG in Saudi were completed, valuing at USD510 million. 17 new overseas projects were awarded to Sinopec with total contract value of USD2.31 billion. By end 2010, there were 9065 managers and operators executing refining and chemical engineering projects overseas.

International Trade

In 2011, in pursuit of the goal of building world-class energy trading position, we continued to expand global trade and steadily boost our performance. Trade volume of crude oil reached a record high of over 200 million tonnes. New breakthrough was made in LNG trade. Total revenue of petroleum trade in 2011 was USD 170.8 billion, exceeding 1 trillion yuan, for the first time, among which USD 75 billion was from external trade. While ensuring supply security, we carried out strategic procurement with close cooperation with more than 700 companies worldwide and significantly lowered cost and increased profit. Our trading network grew more extensive, and we made rapid progress in building storage facilities, providing greater flexibility to our trading activities.

We actively expanded the export market for our oil products, chemicals, equipment and materials, and signed a long-term export supply agreement with the world's largest carbon company, US-based RAIN CII, thus breakthrough in calcined petroleum coke export. We vigorously provided equipment and materials procurement services for overseas projects, so as to extend markets for internal manufacturing subsidiaries. We exported USD 200 million worth of equipment and materials.

For imports, on the one hand, we strengthened specialized procurement and teamed up with global leading suppliers. On the other hand, we extended supply chain management, increasing our influence to the suppliers, and incorporated strategic suppliers’ raw materials and core components into centralized procurement, further enhancing control in schedule, quality, cost, etc. As a result, we ensured timely and economical supply of equipment, materials, technologies to the company’s operations and major projects.

For exports, we made every effort to extend overseas markets for catalysts, lube oil, petroleum coke, paraffin wax and asphalt, and cooperate with the company’s catalysts, lubricants and special products subsidiaries, combining their technology strength with the company’s international marketing network, further consolidating our competitiveness. Our 2011 export in these products totaled USD 1.41 billion, up by 64%.