By YVONNE LEE
HONG KONG -- State-owned China Petrochemical Corp., also known as
Sinopec Group, has set up a new oilfield service company in
Beijing as it seeks to tap the rise in Chinese and overseas
exploration and production activities.
Exploration and production companies hire oilfield service
providers to perform specialized tasks required to extract oil
and gas from the ground.
China, the world's largest energy consumer, is increasingly
demanding more such services to extract resources from domestic
and overseas projects.
The new company, Sinopec Oilfield Service Corp., is
providing oilfield services not only in China, but also in
international markets such as North America, Middle East,
Africa, Central Asia and South East Asia. This will help its
parent gain a further foothold in the oilfield services market,
strengthening its competitive edge in China as well as
At present, China's oilfield services market is dominated by
the three largest oil giants including Sinopec, China National
Petroleum Corp. and China National Offshore Oil Corp., which
account for over 80% of the market share, with the remaining
divided between 1,200 domestic oilfield services providers
including Anton Oilfield Services Group.
Sinopec Oilfield Service Corp. was set up in Beijing with total
fixed assets of 76.6 billion yuan (US$12.2 billion) through the
restructuring of Sinopec Group's oilfield engineering firms,
Sinopec Group said in a statement.
The new unit is estimated to receive CNY95 billion of
revenue this year. It has already chalked up 480 contracts in
43 countries worth US$14.2 billion.
Sinopec Group has been ramping up efforts to expand overseas
ever since Chairman Fu Chengyu joined the refining giant last year after
leaving Cnooc Ltd., a company with a history of making
aggressive moves outside China.
Dow Jones Newswires