International Operations

International Oil and Gas E&P

Based on optimization efforts, strict control in investment and cost, continuous optimization for operation, and strengthened HSSE risk control, we increased free cash flow and obtained multiple results in E&P. Our achievement in development and production exceeded expectation and more profits were generated in our performance, showing a steady and good momentum. Throughout the year, we had several commercial discoveries and exploration breakthrough in Daylight project in Canada, Andes project in Ecuador, Apache project in Egypt and Angola. We had 2 exploration breakthroughs in Angola 1506 project with newly-added reserve of 432 million barrels. We accomplished test on 41 exploration and evaluation wells and harvested commercial oil and gas flow with 75% success rate. The new 2P+2C reserve reached 9 million tonnes of oil and gas equivalent. By the end of 2018, Sinopec had 50 oil and gas E&P projects in 26 countries.

International Oilfield Services

Overseas business saw steady progress and profits were further enhanced. By the end of 2018, we had executed 626 upstream service projects in over 40 countries, with a total contract value of USD 17.054 billion. In 2018, the contract value of new orders was USD 3.15 billion and the completed contract value was USD 2.592 billion.

International Refining & Chemical Ventures

Overseas refining and chemical investment projects also gained good momentum. Operation was steady and smooth for projects like YASREF in Saudi Arabia, the equity participation project in Sibur, the Fujairah storage project in UAE, Krasnoyarskiy NBR JV project in Russia, the lubricants plant in Singapore and VESTA storage project in Holland. We actively explored markets in countries along and nearby the Belt and Road Initiative. The preliminary work for Amur natural gas chemical project in Russia and synthetic rubber project in Saudi Arabia were advanced as planned. By the end of 2018, Sinopec had owned 6 overseas projects of refining and chemical as well as storage and logistics in 5 countries.

International Refining & Chemical Engineering Services

We optimized our business structure and expanded markets for more profits, which yielded relatively good production and operation results. In 2018, we executed 77 overseas contracts (50 projects) in 12 countries, with a total contractual amount of USD 8.874 billion. The value for newly-signed overseas contracts reached USD 728 million and that for completed contracts was USD 1.556 billion. We further solidified our market share in traditional markets like Saudi Arabia and Kuwait. We completed projects like FCC project in Kazakhstan, refining and CDU projects in Jazan, Saudi Arabia.

International Trade

We imported 219 million tonnes of crude oil in 2018, up by 8.76 million tonnes. We optimized the export volume and grade of oil products and increased refinery utilization rate. Total oil products export in 2018 increased by 2.42 million tonnes to 22.42 million tonnes. The LNG import in 2018 reached at 9.269 million tonnes, equaling to 13.27 billion cubic meters of natural gas which rose by 5.37 billion cubic meters or 68%.

The realized annual international trade volume for petrochemical products, equipment and materials reached USD 5.183 billion, up by 90.4%. Realized coal import and third country trade was USD 889 million, up by 123.37%. Total chemical product export and import were 8.37 million tonnes, among which export accounted for 1.8 million tonnes, up by 30.2%. The product mix of exported catalysts was more consistent with the market demand and achieved fruitful results in various markets with multiple product slates. The revenue and profit remarkably went up though overseas sales volume kept flat with last year. The fuel oil business expanded its global presence with an annual realized overseas trade volume at 13.14 million tonnes. Lubricant business mainly targeted at high-end market. Overseas sales supplied for Chinese companies operating outside China rose by 51% and overseas total market sales grew by 23%. By the end of 2018, we had established long-term cooperation with 233 international dealers for our lubricant business as we actively explored market in countries along the Belt and Road initiative.

Our Operations outside China