1

2016-中石化年报-英文版-cs6.indd 1 17-5-19 上午11:58

 CONTENT

COMPANY PROFILE＼02  CHAIRMAN'S STATEMENT＼04

PRESIDENT'S ADDRESS＼06  ORGANIZATION＼08

FINANCIAL STATEMENT＼10  INVESTMENT OVERVIEW＼13

DOMESTIC PRODUCTION & OPERATION＼15 

Oil & Gas Exploration and Production＼16  Oil Refining Production and Operation＼18 

Chemical Production and Operation＼19  Product Marketing and Service＼21 

Petroleum Engineering Service＼25  Refining and Petrochemical EPC Service＼27 

Construction for Key Projects＼28 

INTERNATIONAL OPERATION＼31 

Overseas Oil & Gas Exploration and Production＼32  Overseas Petroleum Engineering Service＼33 

Overseas Refining & Chemical Joint Venture＼34  Overseas Refining & Chemical Engineering Service＼34 

Domestic Joint-venture Cooperation＼34  International Trade＼35 

Overseas Business Layout Sketch Map＼36 

TECHNICAL INNOVATION＼39 

Major Technology Development＼40  New Product Development＼41 

Sci-Tech Outcomes＼41

ENTERPRISE MANAGEMENT＼43 

Reform and Management＼44  Personnel Management＼45 

Ideological Work＼46  Corporate Culture Building＼47 

Integration of Informationalization and Industrialization＼50  Corporate Governance＼52 

SOCIAL RESPONSIBILITIES＼55 

Occupational Health and Safety＼56  Green & Low-carbon＼58 

Community Construction＼60  Public Welfare＼61 

EVENTS＼64 

GLOBAL OFFICES＼66 

2 CHINA PETROCHEMICAL CORPORATION ANNUAL REPORT 2016 CONTENT 01

2016-中石化年报-英文版-cs6.indd 2-1 17-5-19 上午11:58

 COMPANY PROFILE

   China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group, BOARD MEMBERS OF SINOPEC GROUP
established by the state in July 1998 on the basis of reconstructing the former China Petrochemical Corporation. Beijing-
based Sinopec Group has a registered capital of RMB 274.9 billion with the board chairman of Sinopec Group serving as its
legal representative. Sinopec Group exercises the investor’s rights to the related state assets owned by its full subsidiaries, Wang Yupu、Dai Houliang、Ding Zhongzhi、Wang Lili、
controlled companies and share-holding companies, including receiving returns on assets, making major decisions and
appointing managers. The Group operates, manages and supervises state assets according to related laws, and shoulders the Liu Xihan、Shi Huan、Chen Ge
corresponding responsibility of maintaining and increasing the value of state assets.

   The principal operations of Sinopec Group include industrial investment and investment management; the exploration,
production, storage and transportation (including pipeline transportation), sale and comprehensive utilization of petroleum and
SENIOR MANAGERS OF SINOPEC GROUP
natural gas; the production, sale, storage and transportation of coal; oil refining; the storage, transportation ,wholesale and
retailing of oil products; the production, sale, storage, transportation of petrochemical products, natural gas chemicals, coal
chemical products and other chemical products; the production, sale, storage and transportation of energy products such as new
Wang Yupu Board Chairman & Party Secretary
energy and geothermal energy; the exploration, design, consulting, construction and installation of petroleum and petrochemical
engineering projects; the overhaul and maintenance of petroleum and petrochemical equipments; the R & D, manufacturing and
Dai Houliang President & Deputy Party Secretary
sale of electrical and mechanical equipments; the production and sale of electricity, steam, water and industrial gas; the research,
development, application and consulting services of technology, e-commerce, information and alternative energy products; the
Li Yunpeng Vice President & Deputy Party Secretary
import & export, including an import and export agency business, of self-support products and commodity and technologies;
foreign project contracting, bidding and purchasing, and labor export; the international storage and logistics business.
Wang Zhigang Party Committee Member
   At present, Sinopec Group is the largest oil and petrochemical products suppliers and the second major oil and gas producer
in China, the largest Oil Refinery Company and the second largest chemical company in the world, the total numbers of gas
Jiang Liangping Party Committee Member & Discipline
station in second place in the world, ranked the 4th in the Fortune Global 500 in 2016.
Inspection Team Leader

Zhang Haichao Vice President & Party Committee Member

Jiao Fangzheng Vice President & Party Committee Member

Ma Yongsheng Vice President & Party Committee Member

Zhao Dong Chief Accountant & Party Committee Member

Ling Yiqun Vice President

Liu Zhongyun Vice President

Li Yong Vice President

02 CHINA PETROCHEMICAL CORPORATION ANNUAL REPORT 2016 COMPANY PROFILE 03

2016-中石化年报-英文版-cs6.indd 2-3 17-5-19 上午11:58

 CHAIRMAN'S STATEMENT

optimizing operations, reducing cost, improving risk management, We uphold people-oriented development philosophy in green

squeezing expenditure and generating new sources of income. We and low carbon development. The trouble-shooting project in ad-

pressed ahead with structural adjustment across the whole Group. dressing the hazards in oil and gas pipeline was completed one

We discovered Shunbei oil and gas field in the west of Tarim basin, year in advance. “Energy Efficiency Doubling” plan was carried

Xinjiang, achieved further breakthrough in shale gas exploration out in deeper dimension and “Clear Water and Blue Sky” was com-

in Chongqing; and put into operation Fuling shale gas project, the pleted in round success. The people’s well-being projects, such

pressure boosting project of Sichuan-to-East China gas pipeline, as comprehensive improvement in old community and renovation

and Wen-23 gas storage site. The Guangdong Zhongke integrated of shantytowns, were carried out in stepwise manner. We made

project in Maoming-Zhanjiang area was kicked off, marking a sub- continued efforts to organize Public Open Day for social public and

stantial step to build a series of new petrochemical complex bases local community and carry out Lifeline Express campaign to cure

nationwide. The fuel upgrading project targeting GB-V standard cataract patients in poverty-stricken areas. We promoted poverty

was completed ahead of schedule. The proportion of high-val- alleviation project by supporting the regional economic sector and

ue-added chemicals, including synthetic resin, synthetic rubber residential households. All of these endeavors make Sinopec a rec-

and synthetic fiber, increased and replaced imported chemicals. ognized corporate citizen in the public.

We made massive progress in developing “the Belt and Road Initia- Our achievements in 2016 were not won easily. They would

tive”, putting into production YASREF JV Refinery in Saudi Arabia, not have been possible without the support from all circles of the

providing technical and engineering services worldwide against the society, the high degree of trust from our customers and coopera-

headwind in sluggish market and fierce competition, and promoting tion from our domestic and international partners. On behalf of the

new business model and new energy development such as e-com- Board of Directors of Sinopec Group, I would like to extend my sin-

merce platform, non-fuel business and geothermal energy. We saw cere gratitude to you for the care, support and assistance.

new achievement in scientific and technological innovation and 2017 is a year full of challenges and opportunities. We aim to

digital transformation in the manufacturing sector. We forged ahead focus on quality and profitability improvement and upgrading, im-

with the deepening reform, promoting mixed ownership in fuel plement our five development strategies in supply-side structural

retailing segment and introducing investors into Sichuan-to-East reform, emphasize cost reduction, market expansion, structural
Mr Wang Yupu  Chairman
China Gas Pipeline project. Gulei Petrochemical Company, a joint adjustment, deepening reform and capacity building, and strive for

venture enterprise of the Mainland and Taiwan was established. new breakthroughs in structural adjustment and transformation of

The pilot project for scientific and technological system reform was growth pattern. We are committed to make positive contributions to

launched. We promoted a series of reforms, including corporate boost real economy.

Thank you for reading this report and constantly rendering your achieved stable progress based on the five development strategies
profit improvement, divesting non-core business and passing over By insisting on international cooperation, we look forward to
support, care and assistance. of value-oriented growth, innovation-driven development, integrat-
the social functions to the local community and government. We working with you together for a better future!
In 2016, global economic recovery remained weak, domestic ed resource allocation, open cooperation, and green, low-carbon
took holistic approach to strengthened the “three bases”work (i.e.
economic growth slowed down, international oil prices continued development. With focus on ensuring growth and profitability, trans-
grassroots construction, groundwork and basic training), carried
to swing at low levels and the market witnessed fierce competi- forming the growth pattern, structural adjustment and strengthening
forward the legacy built upon in petroleum and chemical business
tion. In light of severe and complex operating environment, and the Party building,we recorded new achievements that represented
industry, and rigorously strengthened institutional management and
guided by the decision and deployment of the Central Committee an exceptional start to our 13th Five-year Plan.
risk control, thus achieving even better result in excellent, earnest
of Communist Party of China (CCCPC) and the State Council, we In this year, we delivered full-year target by expanding market,
and strict management.

04 CHINA PETROCHEMICAL CORPORATION ANNUAL REPORT 2016 CHAIRMAN'S STATEMENT 05

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 PRESIDENT'S ADDRESS

ical products. In oil products marketing business, we fully leveraged pec Jiujiang Company proved to be successful. Intelligent pipeline
the retail network advantages to expanded retail sales volume, with management system was rolled out in many Sinopec subsidiaries.
the total sales volume reaching 173 million tons in domestic market. E-Commerce platforms such as Epec and Sinopec E-Trade were
We paced up the non-fuel business development and generated officially put online. And customer loyalty was growing thanks to
the turnover of 35.1 billion yuan. In technical and engineering ser- Wechat marketing platform.
vices, we further expanded market with overseas income growing With a strong focus on vitality and efficiency improvement, we
significantly. International crude and oil products trade volumes rose deepened reform and intensified management. The overall manage-
steadily and provided reliable resources to feed domestic energy ment of Company improved significantly. We actively advanced the
demand. stock reform in Sinopec Marketing Company, the establishment of
With focus on transformation of growth pattern, structural ad- shared service centers, the pilot program in autonomous operation
justment, quality and profitability improvement, and upgrading, we of Sinopec Northeast Oil Field, and the institutional reform in fine
optimized investment portfolios and advanced a number of key chemical business. We carried forward the legacy built upon in pe-
projects. Capacity building in Fuling Shale Gas Phase-1 and Yuanba troleum and chemical industry, with the focus on strict, earnest and
Gas Field was completed. We made proactive progress in the con- careful management. We strengthened the coordinated planning in
struction of four major refining and chemical bases, in which Guang- production, investment and finance, carried out three-month rolling
dong Zhongke integrated project in Maoming-Zhanjiang Base was planning and budgeting for production and operation. We focused
kicked off. Zhongtian Hechuang Coal Chemical Project was com- on safety management and environment protection by strengthening
pleted and commissioned. A number of storage and transportation the “three bases” work and emphasizing accountability, implemen-
facilities were put into operation. The project to address the hidden tation, verification and punishment system. In general we achieved
hazards in oil and gas transmission pipeline was completed one safe and clean production target. We aimed to motivate employee’s
year in advance. Trouble-shooting project for tank farm management devotion by improving performance assessment mechanism, which
yielded positive progress. “Clear Water and Blue Sky” environment incentive the senior executives and employees to contribute their
protection project was completed in round success and “Energy entrepreneurship and creativity to the Company. We cut costs and
Efficiency Doubling” project was advanced in stepwise manner. We expenses by optimizing crude trading, materials procurement and
paced up the development in businesses, such as finance, geother- inventory management. We focused on cash flow management and
Mr Dai Houliang  President mal, energy conservation and environment protection, adding an strengthened fund-raising, addressing the employment of housing
area of 8.63 million m in geothermal heating capacity. We actively
2
fund and supplementary pension funds. The cash flow from oper-
promoted international cooperation. Gulei Petrochemical Project was ation activities was improved. We paced up the institutional devel-
well underway. The capital introduction for Sichuan-to-East China opment in risk management and internal control, strengthening the
Gas Pipeline Project was completed. YASREF JV Refinery in Saudi verification mechanism for legal risk prevention, so as to make sure
Arabia was put into operation. And the refinery and marketing proj- the company is ran based on and in compliance with the law.
In face of complex and severe operating environment in 2016 and We saw commercial oil and gas flow in Yongye-1 Well in Sichuan ect in South Africa developed smoothly. 2017 is a year full of challenges and opportunities. We will imple-
guided by the decision and deployment of the Leading Party Group Basin, Wei-4 Well in Beibu Gulf and Guaican-1 Well in Yin-E Basin of While developing the existing business, we took a long-term ment the decision and deployment of the Party Central Committee
and Board of Directors of the company, we achieved stable progress Inner Mongolia. All of these efforts bode well for expanding reserve perspective for the future, promoting innovation-driven strategy and and State Council, and make progress while ensuring stability guid-
while ensuring stability. While focusing on quality, profitability and up- acreage. We advanced oil and gas development in high-profit acre- engaging scientific and technological innovation as the cornerstone ed by the Leading Party Group and Board of Directors of the Com-
grading, we accelerated transformation of growth patter as well as age and minimized activities in low-efficiency areas. The Company’s for our businesses. We set out the management methods and ap- pany. We aim to focus on quality and profitability improvement and
structural adjustment. We pressed ahead with our work in all aspects production of oil and gas was 35.6551 million tons and 21.59 billion proaches for R & D project execution, capex arrangement, commer- upgrading, with emphasis on operational excellence, cost reduction,
and achieved better-than-expected performance results. The com- m3, respectively. We expanded natural gas market and sold 26.7 bil- cialization and motivation measures, exploring the incentives such market expansion, deepening reform, capacity building and safety
pany recorded the annual sales revenue of 1.97 trillion yuan, paid the lion m3 of natural gas. In overseas upstream business, we intensified as equity investment and bonuses sharing, and encouraging scien- management. We are committed, with full confidence and determi-
tax of 335.733 billion yuan and generated the profit of 52.903 billion project operation and management and achieved 42.95 million tons tific and technological innovation activities. We made breakthroughs nation, to achieve the full-year target in all aspects.
yuan. equivalent of overseas equity oil and gas. With respect to oil refining in a series of core technologies. In the whole year, we applied for
In this year, the Company actively addressed market changes business, we vigorously increased the total refining throughput and 6,563 patents, in which 4,878 were granted patent licenses. We won
with the focus on economic efficiency and optimal production and processed 237 million tons of crude oil in time of low oil prices. In four 2nd Prizes of National Technology Invention Award, one China
marketing, thus ensuring stable production and operation. In terms terms of chemical business, we adjusted product mix to meet the Patent Golden Award and nine Excellence Awards. We advanced
of domestic upstream business, we intensified exploration activities market demand and expanded marketing volume, thus turning out integration of information technologies with manufacturing and com-
and achieved successful discovery in Shunbei area in Tarim Basin. 11.0586 million tons of ethylene and sold 69.96 million tons of chem- pleted ERP concentration. The 4 pilot smart plants including Sino-

06 CHINA PETROCHEMICAL CORPORATION ANNUAL REPORT 2016 PRESIDENT'S ADDRESS 07

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 08
Sinopec Group

2016-中石化年报-英文版-cs6.indd 8-9
(For 2016 ended 31December)
ORGANIZATION

Legal Dept.
Finance Dept.

Auditing Bureau
Managment Dept.
Party Work Dept.

Propaganda Dept.
(International Co.,Ltd)
Engineering Dept.

Material & Supply Dept.

Supervision Bureau
Energy Management and

Office Service Bureau

Mining Area(Community)

Foreign Affairs Bureau

Capital Operation Dept.
Corporate Reform Dept.

Human Resources Dept.

Environmental Protection Dept.

Safety Supervision Bureau
Science & Technology Dept.
Development Planning Dept.
General Administration Office

Production Management Dept.

Affairs of Retired Officials Dept.

Information Management Dept.
Public Investors Institutional Investors
Oilfield Service Corporation

Engineering Group Sinopec Corp.

）
（ Separate Listed Specialiazed Companies

The Board of Supervisors

The Board of Directors

Non-Listed Oilfield Enterprises

Non-Listed Refining & Social Responsibility Remuneration & Strategic The Secretariat
Auditing
Management Evaluation Decision-making Management Committee of the Board of
Chemical Enterprises Subcommittee
Subcommittee Subcommittee Subcommittee Directors

Specialized Companies and

Other Units

（ ）
Non-Listed Part

Functional
Departments of
Headquarters

President's Office

Development Planning Dept.

Refined Product Chemical Refining Oilfield E&P
Sales Dept. Dept. Dept. Dept.
Finance Dept.

Production Management Dept.

Corporate Reform Dept.

Human Resources Dept.

Science & Technology Dept.

Legal Dept.

Capital Operation Dept.

Safety Supervision Bureau

Energy Management and

Refining & Chemical Environmental Protection Dept.
Specialized Companies Sales Subsidiaries Oilfield Enterprises Research Institutes
Subsidiaries
Engineering Dept

Material & Supply Dept.

(International Co.,Ltd)

Chemicals Refining Information Management Dept.

Foreign Affairs Bureau

Auditing Bureau

Supervision Bureau

Enterprise Culture Dept.

ORGANIZATION

（ ）
Listed Part Affairs of Retired Officials Dept.
09

17-5-19 上午11:58
 FINANCIAL STATEMENT

BALANCE SHEET
RMB MILLIONS

2016 2015 2014 2016 2015 2014

164,674.77 94,232.19 35,218.56 116,268.59 140,833.16 162,689.50

16,542.02 13,524.00 16,575.33 10,087.69 8,174.78 7,026.45
63,343.36 56,215.51 88,474.41 225,600.03 179,528.14 249,055.21
10,785.00 8,613.41 12,141.94 126,054.32 117,818.57 113,405.37
27,640.55 31,320.31 38,371.85 5,386.87 2,938.19 3,732.08
251,050.09 232,258.95 274,975.06 60,020.40 41,515.15 38,456.71
68,961.43 65,851.81 8,351.02 3,117.80 2,787.58 3,115.30
56,967.79 49,448.42 24,257.11 58,461.26 68,625.21 100,885.99
659,965.02 551,464.58 498,365.28 71,976.97 20,223.40 98,561.09
51,113.96 74,065.09 39,943.08
23,780.40 21,569.78 7,701.84 728,087.89 656,509.28 816,870.79
36,750.34 33,240.35 31,028.25
120,215.52 102,703.37 207,190.74 66,306.44 76,006.24 178,289.25
590,797.38 611,778.98 590,093.08 216,687.70 206,007.51 158,814.21
215,240.03 239,085.33 397,869.03 16,106.37 14,206.40 29,826.87
43.37 32.17 1,534.81 2,418.70 2,482.19 2,807.14
151,260.87 173,908.36 231,946.89 39,619.79 33,492.30 41,924.64
110,494.67 107,291.92 103,971.92 8,079.05 8,757.34 40,900.51
8,537.35 8,455.69 25,206.47 9,184.93 8,067.42 6,509.71
17,408.51 17,733.29 19,015.90 358,402.97 349,019.39 459,072.32
8,331.61 8,662.78 10,288.94 1,086,490.86 1,005,528.67 1,275,943.11
216,566.37 182,581.09 15,614.30
1,499,426.43 1,507,043.12 1,641,462.17 325,907.53 319,898.03 303,222.26
97,561.40 97,537.98 51,575.28
Other comprehensive income -23,850.48 -38,583.83 -33,146.01
1,090.80 1,041.76 931.21
205,373.07 204,976.95 183,271.60
1,327.72 876.51 716.59
132,869.39 144,490.62 154,510.18
Shareholders' equity attributed to equity
shareholders of the Group 740,279.43 730,238.03 661,081.11
332,621.17 322,741.01 202,803.23
1,072,900.59 1,052,979.03 863,884.34
2,159,391.45 2,058,507.70 2,139,827.45 2,159,391.45 2,058,507.70 2,139,827.45

10 FINANCIAL STATEMENT 11

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 INVESTMENT OVERVIEW

In 2016, based on the investment policy for “controlling total quantity, rhythm for oil product pipe network and oil depot reasonably, continued the
INCOME STATEMENT making both ends meet, standing out key points, adjusting structure, governance for hidden danger and environment protection and expanded
RMB MILLIONS optimizing project and increasing return”, we had a good beginning for the bonded and fuel filling business. In the whole year, we established 466
“13th Five-year Plan” by intensifying quality improvement, efficiency increase, gasoline stations and 92 gas stations.
2016 2015 2014
upgrading, investment optimization and investment return. Our engineering enterprises intensified investment management,
1,969,219.82 2,047,271.91 2,889,934.29
In 2016, we had RMB 101.7 billion investment in the fixed assets (excluding insisted on benefit-focused idea and the principle for strictness, activeness
1,934,382.26 1,997,461.86 2,822,711.00 profit and loss expenses); of which, RMB 17.3 billion was invested in overseas and cautiousness, optimized engineering technical resources constantly,
1,528,839.65 1,598,235.90 2,439,816.83 oil and gas exploration and development; RMB 34.2 billion was appropriated allocated mechanical execution equipment reasonably, expanded domestic

237,977.64 241,696.41 205,829.10 to domestic oilfield enterprise; RMB 25.7 billion was for refining and chemical and international engineering service markets vigorously, kept domestic
enterprise, RMB 18.5 billion was invested in oil product sales enterprise; RMB competitiveness advantage, improved internationalization of engineering
51,197.87 48,615.15 49,245.38
1.5 billion was invested in logistics and commercial base construction; RMB service and explored the new space for engineering service market.
77,905.46 75,743.69 77,303.01 1.6 billion was invested in petroleum engineering and refining & chemical With respect to scientific and technological innovation, we highlighted
11,047.45 10,456.05 21,370.40 engineering enterprise; RMB 2.9 billion was used in scientific research strategy guide and problem orientation and pushed the key and core

8,402.14 13,110.54 19,111.18 information. technologies forward intensively, so as to input scientific research
For upstream enterprises, we boosted high-efficiency exploration and infrastructure and high-end R&D equipment effectively and give play
19,012.04 9,604.13 10,035.10
benefit development vigorously. For domestic oil fields, we maintained to leading and supporting function of transformation development. We
-209.04 728.91 -4,151.32 the original strength for exploration, highlighted benefit orientation in deepened information construction and application constantly, advanced
16,818.97 6,207.18 12,028.24 development, adjusted development structure energetically and increased informationization and industrialization integration continuously, finished

51,447.50 56,746.13 75,100.20 natural gas production continuously. We seized major strategic opportunities various joint-stock companies ERP concentration, completed pilot
such as national “the Belt and Road Initiative”, gave play to upstream, construction of intelligent factory successfully and applied purchase and sales
7,604.09 10,324.12 7,726.35
midstream and downstream integration advantages and were actively e-commerce platform system fully.
6,148.12 4,948.51 5,773.83 involved in global oil market competition. We guaranteed investment strength for safety, environment protection
52,903.46 62,121.74 77,052.73 Our refining and chemical enterprises completed National V standard and intelligent projects continuously and displayed our green and low-

24,704.68 18,027.51 33,704.18 automobile gasoline and diesel quality upgrading in advance, by boosting carbon image further. We completed hidden danger governance of oil and
market-oriented oil refinery structure adjustment actively and increasing gas transmission pipeline one year in advance and had a positive progress in
28,198.78 44,094.23 43,348.54
aggregate vigorously through taking export as supplement; based on the idea hidden danger governance in tank farm. We completed “Clear Water and Blue
19,841.85 21,502.88 13,250.36 for “basis+high end”, the enterprise focused on benefit orientation, market Sky” environment protection special action entirely. We advanced “Energy
Net profit attributable to equity shareholders of 8,356.93 22,591.35 30,098.18 change, production and sales matching, structural adjustment and expanded Efficiency Multiplication” plan orderly and popularized intelligent pipeline
the Group
market and sales channel vigorously. We were actively involved in “the Belt management system fully.
and Road Initiative” construction and put Yasref Oil Refinery in Saudi Arabia For green new energy, in geothermal energy aspect, we completed
into production formally. We obtained positive progress in construction of the Geothermal Heating Transformation Project of Taiyuan Economic and
four major refining and chemical bases. Technical Development Zone in Shanxi; in terms of solar energy, we started
In terms of finished oil marketing, we speeded up investment structure construction of Shanxi Baishui 20 MW Agricultural Light Complementation
optimization, strengthened stock assets development and transformation, Project, our first centralized photovoltaic power generation project; with
improved network quality further, promoted non-oil business to develop respect to charging and battery swap stations, we cooperated with BAIC New
rapidly, improved comprehensive service function, accelerated improvement Energy and other organizations to establish the first batch of charging and
and construction of natural gas business facility, controlled construction battery swap stations, so as to offer convenience for battery swap taxi.

12 INVESTMENT OVERVIEW 13

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 DOMESTIC
PRODUCTION & OPERATION

Oil & Gas Exploration and Production.........................16 

Oil Refining Production and Operation. .......................18 

Chemical Production and Operation...........................19

Product Marketing and Service.................................21 

Petroleum Engineering Service. .............................. 25 

Refining and Petrochemical EPC Service.................... 27 
Construction for Key Projects. ................................ 28 

14 15

2016-中石化年报-英文版-cs6.indd 14-15 17-5-19 上午11:58

 Oil & Gas Exploration and Production

In 2016, the newly increased oil controlled reserves were 143 million tons million tons with a drop of 14.6%; we produced 21.59 billion m3, increasing
and predicted reserves were 223 million tons; while for natural gas, the two by 894 million tons with a rise of 4.3%. Annual newly established capacity
numbers were 288.1 billion m3 and 399.7 billion m3 respectively. In the whole for crude oil was 1.42 million tons and that number for natural gas was 3.64
year, we produced 35.655 million tons crude oil totally, decreasing by 6.08 billion m3.

OUTPUT OF OIL & GAS

2016 2015 2014 2013 2012

Crude oil（million tons） 35.66 41.74 43.78 43.78 43.18
3
Natural gas（billion m ） 21.59 20.70 20.17 18.70 16.94

Oil & Gas Exploration

Natural Gas Production
With strong focus on advancing efficient exploration, we harvested was produced daily in trial production of Longma River Formation, a sign that
2 major breakthroughs, 2 great discoveries, 9 new discoveries and 14 we realized the great breakthrough for exploration in shale gas new area.
In terms of shale gas, we implemented efficient production of Fuling Shale construction of Yuanba Gas Field completely and boosted rolling benefit
new achievements in commercial discovery, by taking discovering scale 2 great discoveries: For the second layer of Wei #4 Well in Weixi
Gas Field; the year-around newly established capacity was 2 billion m3, the realization of middle-shallow layer in West Sichuan actively; the newly
and superior reserves as main direction and strengthening preliminary Exploration Area of Beibu Gulf, over 1,000 tons high-yield oil flow
accumulated established capacity was 7 billion m3 and annual gas production established capacity was 460 million m3, annual gas production was 5.5
prospecting and risk exploration, basic research, scientific argumentation and was produced daily in trial production; Wei 6 Well, which is deployed 3
was 5.04 billion m . billion m3 with a increase of 680 million m3. We boosted North Ordos capacity
deployment and management implementation. independently, also realized high-yield oil and gas flow, which indicated we
In terms of conventional gas, the year-around newly established capacity construction continuously, with newly established capacity for 640 million m3
2 major breakthroughs: After breakthrough in Shunbei 1-1H Well-the obtained the important discover in oil and gas in proprietary waters. For 3 3
was 1.64 billion m . We completed 3.4 billion m cleaned gas capacity and annual gas production for 3.52 billion m3.
Shunbei #1 Fracture Zone in Tarim Basin, we implemented exploration and Guaican #1 Well established in Yin’e Exploration Area, Inner Mongolia, we
development integrated fast evaluation, had 7 completed evaluation wells obtained industrial oil and gas flow in trial production, a great discovery in
producing over 100 tons high-yield light-weight oil flow daily in Ordovician, new exploration.
discovered Shunbei Oil and Gas Field and obtained the major breakthrough 9 new discoveries: There were 6 petroleum new discoveries in trap
for “discovering Ta River beyond Ta River”. For Yongye 1HF Well established preliminary prospecting of inside of Ordovician Yingshan Formation and
Oil Field Development
3
in Yongchuan Exploration Area, Sichuan Basin, 141,000 m high-yield gas flow Carboniferous clastic rock of Ta River Oil Field, Carboniferous and Chunguang
stratum oil and gas reservoir in western Chepaizi area in the western border
areas of Junggar Basin, Jiyang depression “Three New” field and Gaoyou We implemented benefit allocation fully and strengthened structural In terms of stock, we fully popularized and applied “three lines and
depression subtle reservoirs; there were 3 new natural discoveries in trap adjustment. four zones” model of Shengli Oil Field to direct benefit development;
preliminary prospecting of Hangjinqi Duguijiahan area, Chezhen depression In terms of quantity increase, we strengthened on rolling exploration continuously boosted output structure, injection and production structure
Paleozoic erathem and Songnan Dehui fault depression. and oil reservoir evaluation and highlighted economic evaluation and risk and measurement structure optimization, controlled natural decline and
evaluation; as a result, success rate of rolling evaluation well reached 70%, we lowered water content and operating cost. We paid more attention to oil
14 commercial discoveries: There were 9 petroleum scale commercial completed a batch of production bases such as eastern middle-shallow layer field development foundation tamping, injection and production relation
discoveries in evaluation exploration in the western border areas of Junggar fault block and lithologic reservoir and mesozoic & paleozoic group and newly improvement for water-drive reservoir, improvement of water injection “three
Basin, Shengli Beach Shallow Sea, Jiyang depression Paleozoic erathem, increased commercial developed reserves was 42.63 million tons. We were rates” (layered water injection test rate, test pass rate and pass rate of layered
glutenite formation in northern zone of Dongying, Jinhu depression, Gaoyou strict on the arrangement of project benefit evaluation value taking research, water injection), strengthening of flow field adjustment and improvement of
depression, Qintong depression, Biyang depression and Dongpu depression. emphasized scheme design optimization, executed standard cost economic water-drive development benefit. For heavy oil thermal recovery reservoir,
There were 5 natural gas scale commercial discoveries in evaluation and evaluation value taking research, formulated different kinds of oil reservoir we completed thermal efficiency management and improved economic gas
exploration of Shilijiahan Zone in Hangjinqi Region, Leikoupo Formation in standard development index models, optimized and reevaluated continuously oil ratio. For chemical reservoir, we highlighted personalized adjustment and
Xinchang, West Sichuan, Jurassic system in Zhongjiang block of West Sichuan, constructed project, strengthened new drilling well design reconsideration, improved ton-focused oil exchange ratio. In the whole year, we closed 2,680 oil
Songnan Deep Zones, etc. liquidized remnant assets, matched with process technology, lowered project wells that were invalid temporarily, measurement workload had a decrease of
construction cost and ensured energy and efficiency increase. Average daily 34.6%, effective rate rose by 9% and oil measurement cost per ton decreased
oil production for single well which was put into production recently was 6 by RMB 7.9.
tons, with a growth of 0.4 tons; we had development cost reduced further.

16 DOMESTIC PRODUCTION & OPERATION 17

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 Oil Refining Production and Operation Chemical Production and Operation

Quality and efficiency improved steadily. We boosted quality upgrading, Production and operation kept steady. 2016 was a year when extreme In 2016, we had an output of 11.0586 million tons ethylene and 4.33 on benefits and considering immediate and long-term benefits, and restricted
witnessed 11 enterprises including Sinopec Maoming, Beijing Yanshan, weather occurred often. We prepared response plan in advance according million tons p-xylene respectively, a drop of 59,300 tons and 70,000 tons and stopped the production of equipment which had no contribution margin
Beihai, Shanghai Gaoqiao and Wuhan Petrochemical had their newly to weather forecast, strengthened emergency response drill and coped with separately; cost of “ethylene” was dropped by RMB 57/ton; proportion of and influences on product chain; meanwhile, we urged enterprises to keep
established devices put into production smoothly and had our processing extreme weather calmly; thus we kept safe production steady and made synthetic resin new products and special resin was 61.4%, a rise of 2 percent stability of employees, dispose the assets of devices that were no longer used
adaptability of oil refining part enhanced constantly and product quality output of finished product a 0.5% YOY increase. point, we replaced 205,000 tons imported resins; differentiation rate of and maintain periodic shutdown equipment.
improved continuously. We obtained staged progress in popularization and Efficiency increase for product structure was obvious. Optimization synthetic fiber reached 86.5%, a rise of 4.4 percent point; proportion for high Intensification of production and operation management: We strictly
application of catalytical diesel conversion, LTAG and other technologies and efficiency increase of product structure was obvious after our pressing value-added product of synthetic rubber was 20.5%. controlled investment risks and ensured return on investment. ROCE
and intelligent pipeline construction. Our oil refining comprehensive close to market and benefit, optimizing and adjusting production scheme, Continuous structural adjustment: We carried out raw material structural (excluding coal-to-chemicals) in chemical sector reached 14.7%, a rise of
competitiveness was enhanced constantly and earning capacity was advancing combination and sharing among enterprises, strengthening adjustment in order to maximize input-output efficiency, optimized raw 4.1 percent point, reaching the advanced level of major chemical companies
improved continuously. production and sales coordination actively, expanding market jointly, trying to material structure by keeping close to market dynamics, dug and reasonably worldwide. We strengthened cost objective management to all staffs and
increase gasoline and jet fuel production and sales and lower diesel gasoline utilized refinery byproduct gas resources, and arranged the processing of strictly controlled the cost from all perspectives; the total cost for chemical
ratio for production. Gasoline production increased by 4.4% in the whole heavy cracking materials, such as diesel and hydrocracking UCO. In terms products throughout the whole year was RMB 1,308/ton, a drop of RMB
year; of which, high-grade gasoline production increased by 6.2% and jet fuel of product structure adjustment, we aimed to improve the added value of 22. We strengthened the connection between production and marketing,
production increased by 4.6%; diesel gasoline ratio for production is 1.19:1, products, insisted on replacing imported products, optimized the division continued optimizing production arrangement according to market conditions
lowering by 0.11 unit. of variety and grade manufacturing among enterprises and workshops, and and benefit, increased the output of products that were well received on
Export quantity of oil products increased greatly. We had year-around upgraded level and grade of the three synthetic materials by integrating market and enjoyed good benefits, and increased market share painstakingly
export quantity of oil products increasing by 24.5% after our improving production- marketing-research. We adjusted equipment structure by focusing by integrating production and marketing.
storage and transportation facility, expanding export channel constantly and
trying to increase export quantity of oil products, which played a vital role in
supporting high processing load for oil refinery.
Quality upgrading was completed smoothly. We advanced quality
upgrading, optimized production organization and product coordination,
and strengthened production and sales cooperation. In October 2016, our ex-
factory vehicle gasoline and diesel started to reach National V standard totally,
which indicated we completed quality upgrading in advance and ensured that
our oil quality was always leading in China.

OUTPUT OF OIL PRODUCTS IN MILLION TONS

2016 2015 2014 2013 2012

237.32 238.29 236.98 233.70 223.09
 
Equity runs 228.52 228.70 226.71 224.80 213.15
150.22 149.39 147.32 142.05 135.04
  56.36 53.98 51.22 45.94 41.09
  25.47 24.35 20.75 17.43 15.01
  67.34 70.05 74.26 77.48 77.81
  1.05 1.00 1.10 1.19 1.13
1.57 2.29 3.59 4.24 3.22
0.08 0.18 0.23 0.32 0.43
0.42 0.44 0.43 0.50 0.51
7.54 8.44 7.29 7.72 6.23
13.61 13.59 14.06 13.80 13.55
39.10 38.97 39.42 38.23 36.46

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 Product Marketing and Service

Natural Gas In 100 million m3

267

260

240
In 2016, Sinopec sold 26.7 billion m3 natural gas, including self-produced
3 3 220 210.1
natural gas of 19.848 billion m , imported LNG of 4.74 billion m and other
3
resources of 2.112 billion m . 200
183
Sales increase rate reached a new record. We implemented differentiation 180 168

strategy actively, determined potential market of development and tried to 154

160
expand market and increase volume. We improved provincial and regional
140
cooperative pipeline network and strengthened regional distribution capacity;
optimized joint venture and cooperation modes and vitalized operation of 120

joint venture companies; carried out strategic and channel cooperation to 100
expand end market. We implemented diversified services, expanded high
80
quality customer group and gave play to the maximum biting force to realize
OUTPUT OF CHEMICAL PRODUCTS IN MILLION TONS 60
quantity and efficiency improvement.
10 2016 2015 2014 2013 2012 Safety production level was improved continuously. We improved HSE 40

system constantly and advanced major hidden danger governance with

19 Ethylene 11.06 11.12 10.70 9.98 9.54 20
effort: We witnessed 1,213 hidden danger projects were governed completely
  Equity
yield 8.43 8.49 8.18 7.87 7.57 2012 2013 2014 2015 2016
and three-year hidden danger governance was realized as scheduled. We
Propylene 9.08 9.26 8.97 8.55 8.09 Sales volume of natural gas
53 established and put into Beijing Production and Operation Control Center
40 Synthetic resins 15.46 15.48 15.06 14.13 13.77 into operation and realized production and operation-integrated dispatching
management gradually. We improved emergency plan, increased emergency
20   PE 7.27 7.33 7.11 6.60 6.20
disposal capacity and successfully solved emergency events including rare
20   PP 6.58 6.52 6.30 5.82 5.55
heavy rain in some regions in summer.
69   PS 0.59 0.58 0.65 0.67 0.67
60   PVC 0.23 0.23 0.22 0.31 0.58
29 Synthetic rubbers 1.12 1.15 1.24 1.29 1.24
36   BR 0.36 0.39 0.42 0.44 0.34
53   SBR 0.36 0.37 0.46 0.47 0.57
04   IIR 0.01 0.01 0.03 0.04 0.03
33   SBS 0.27 0.27 0.27 0.29 0.24
97 Raw materials for synthetic fibers 6.48 6.35 5.72 6.26 6.06
38   PTA 2.49 2.27 2.48 2.95 3.13
57   Acrylonitrile 0.95 0.99 0.74 0.70 0.61
71   EG 2.43 2.55 1.93 2.02 1.97
29   CPL 0.56 0.49 0.53 0.55 0.30
26 Polymers for synthetic fibers 3.03 2.85 2.84 3.29 3.34
05   PET 2.70 2.56 2.59 2.99 3.02
13   PVA 0.18 0.17 0.14 0.17 0.20
41 Synthetic fibers 1.26 1.30 1.33 1.41 1.35
08   Polyester fiber 1.00 1.01 1.05 1.09 1.04
31   Acrylic fiber 0.23 0.27 0.26 0.29 0.29
19 Synthetic ammonia 1.15 0.97 0.96 1.16 1.26
71 Nitrogen fertilizer(100% N base) 0.18 0.16 0.31 0.69 0.66
22 Urea — — 0.09 0.92 1.05

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 new businesses in station such as insurance, automobile service, fast food and
Oil Products and Non-oil Products advertisement, enriched functions of real service and improved integrated
service capacity. We advanced cross-border cooperation and cross marketing,
introduced the third-party marketing resources successfully and lowered
In 2016, total sales of oil products reached 195 million tons; including total In 100 million tons Total sales volume Domestic sales volume Retail sales volume

1.95 marketing cost dramatically. We explored “internet + sales + service” new

domestic sales of oil products of 173 million tons. The retail sales reached 2 1.89 1.89
1.8 commercial mode and established sales enterprise WeChat marketing
120 million tons. We had transaction amount of our non-oil products reaching 1.8 1.73 1.71 1.71 1.73
1.65 platform; parts of enterprises developed APP application independently and
RMB 35.1 billion, with increase rate of 41.4%, after promoting non-oil product 1.59
1.6 increased number of WeChat fans, registered members and card-bound users
professionalization and marketization and improving both operation scale
1.4 vigorously.
and benefits. 1.20
1.18 1.19 Marketing network construction: We ensured our network was
Oil products marketing and service: We highlighted retail scale 1.2 1.14
1.08
extended to every corner to realize increment; insisted on quality and
improvement and implemented gas station retail increment measure 1
efficiency, increased development confidence, highlighted value orientation,
focused on marketing planning, assessment guidance, oil and non-oil product 0.8
improved investment return calculation standard by region and type and
interaction and site management; popularized and implemented “one
0.6 developed high-return project vigorously through accurate point selection
measure for one station” policy based on control force segment market and
0.4 and investment. We actively adapted to new normal, made innovation in
improved retail scale. We seized gasoline consumption increase opportunity
0.2 development mode, controlled capital risk and boosted short-term lease oil (gas) stations after closing, and tearing down stations or canceling the
to improve gasoline sales expanding and benefit creation vigorously by means
and other asset-light development modes. We promoted long-distance lease of stations at the request of government. We prioritized investment
of oil and non-oil product mutual promotion, fuel card marketing and high 2012 2013 2014 2015 2016
transmission pipeline construction and operation. We spared no efforts to demands in emerging business, hidden danger governance, gas and oil tank
Sales volume of oil products
vitalize network stock, strengthened outlet state management and highlighted capacity, natural gas business, etc.; accelerated project approval progress and
market characteristics through wholesale and retail price difference; we strengthened key project supervision; urged timely settlement of investment
RMB 100 million
coordinated employment and related expenses policies issued by increasing and tried to improve investment efficiency. We witnessed CRM system pilot
360 351
grade oil marketing. We curbed diesel retail downturn trend by coordinating quantity, transforming, opening business again after going out of business, was online, uniform member management system was established, fuel card
340
and strengthening diesel market supervision, purifying market environment extending business hours, etc., so as to accelerate release of stock network hall function was improved and information system service and operation and
320 and alleviating dislocation competition. We expanded the scale of direct increment potential. Till the end of the year, there had been 30,603 Sinopec customer competence were enhanced constantly.

300 selling and distribution by virtue of “selling and purchasing more” policy and
purchased oil price advantages. We put emphasis on creating operational
280
logistics system, strengthened secondary balance and three-level logistics
260 248.3
optimization, boosted resources sharing vigorously, strengthened purchased
240 recourses entering pipeline and controlled high-freight shipment; as a result,
Fuel oil
220 our logistics cost lowered dramatically on a year-to-year basis.

200
Non-oil product marketing and service: We saw our emerging business In 2016, we had a total business volume of fuel oil for 19.09 million tons,
In 10 kilotons
keep improving efficiently and rapidly, by implementing “commodity+ with YOY growth of 1.5%.
180 171
service” “dual-wheel drive” mode and establishing online and offline 2500
Bonded oil business operation capacity was improved obviously. We
160 2032
platforms. We boosted convenience store specialized operation and strengthened system and mechanism reforms, established four professional 2013 2027
133.5 expanded proportion of basic varieties intensively; to be specific, sales 1909
140 teams, founded North China and South China regional centers and determined 2000 1881

120 110.2 of Zhuoma Spring, tail gas treatment liquid and fuel treasure developed subject responsibilities for “purchase, sales, storage, quantity, profit and
rapidly. We witnessed increase rate for oil retail of stations involved was 4% expense” further; as a result, coordination and linkage between purchase 1500
100
higher than that of stations not involved, after boosting normalization and and sales and paper-based goods and real goods were enhanced obviously.
80
electronization of oil and non-oil product mutual promotion vigorously. We By intensifying pelagic fishery and container customer development, we had 1000
60 advanced capital operation steadily and established water industry layout MGO and RMK sales increasing 48% and 28.5% respectively, which improved
2012 2013 2014 2015 2016
for regional advantages complementation; we launched “Xileshuang” glass variety structure effectively. We expanded business volume for a batch of key
500
Revenue of non-oil products water after founding factory in the form of joint investment. We developed customers and had long-term approximately proportion and end proportion
reaching 35% and 40% respectively and price difference condition bettering
2012 2013 2014 2015 2016
obviously. By optimizing resources scheduling and logistics operation, we had
Sales volume of fuel oil
our expenses lowering: In general, expenses were reduced by over RMB 20
2016 2015 2014 2013 2012 million in the whole year. For bonded business, annual sales were 2.93 million
Total number of sinopec-branded service stations(units) 30603 30560 30551 30536 30836 tons, distribution service quality was improved further and there were over more than 20 scale end customers newly increased. Our blending business
4,000 times of distribution flights in the whole year. scale was enlarged: In the whole year, we blended 540,000 tons resources,
  Company owned and operated stations 30597 30547 30538 30523 30823
Effect of domestic trade transformation was obvious increasingly. Our accounting for 50% of ship fueling business volume. In terms of domestic
  Franchised stations 6 13 13 13 13 trade, we had business volume of 3.86 million tons in the whole year.
customer development capacity was improved effectively and there were

22 DOMESTIC PRODUCTION & OPERATION 23

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 Petroleum Engineering Service

Geophysical new breakthrough in technical innovation and structure tectonic zone in front of north hill in eastern Sichuan and the exploration
Other Oil Refining Products adjustment. We promoted and applied controllable source efficient discovery of Shunbei Oil and Gas Field. In whole year, there were 211 ultra-
acquisition technology extensively, with application rate as high as 86%, deep wells and 21 wells over 7,000 m deep, drilled and finished, with

Market shares of self-consumed oil refining products kept ahead in Road Scientific Research Project. in Xinjiang, North China, Northwest China, and Inner Mongolia. Seismic average well depth of 5,698.84 m, mechanical drilling speed of 7.09 m/h, and

China, with annual business volume increasing by 5.2% on a YOY basis, a With respect to lubricating oil business, we deepened “technology+ acquisition efficiency and data quality were significantly enhanced. drilling cycle of 97.91 days. Mashen #1 Well set a record of Asian deepest

new history record. For sulfur, paraffin wax and other parts of products, market” operation mode constantly and kept moving towards the highest Domestic 3D seismic acquisition efficiency showed a growth of 10%, and well (a drilled depth of 8,418 m), and Shunbei #2 Well set a new record of

normalized sales of e-commerce platform was realized; new breakthrough end of industrial chain. In the whole year, we obtained 50 international the value creating level of the projects kept rising. Emerging businesses being the worldwide obliquely deepest (a drilled depth of 8,169 m) among

was obtained in sales of calcined petroleum coke, modified asphalt, food- certifications and 24 newly increased patents and witnessed 64 new products such as survey geographical information, anti-corrosion detection of oil & small holes, which marked Sinopec ultra-deep well drilling and finishing

grade sulfur and other high-end products. We strengthened development, put into production and multiple products were commercially popularized gas pipeline, information services, and urban underground piping detection technology entered the ranks of world leading technologies.

application and popularization of new products and completed “inferior oil and applied in high speed rail field; we had a total annual business volume developed rapidly. Continuous improvement in shale gas well drilling technology. We

slurry production and superior needle-like coke technology development increasing by 7% and high grade oil sales rising by 11% on YOY basis. Our Further improvement in deep well and ultra-deep well drilling matching developed and promoted BT100 and BT200 drilling fluid systems, powered

and industrial application” for “Ten Dragons” Key Scientific and lubricating oil was widely applied in wind power, robot and other industries, technologies. A series of drilling acceleration technologies dominated by emulsifier for oil-based drilling fluid, controlled gel plugging technology,

Technological Project of the company; we obtained staged achievements in with sales increasing by 30% on a YOY basis. downhole tool + efficient drill bit and featured technologies, including etc., reducing the risk of lost circulation. Through R & D of drill bit, bolt, and

new product development of Xinjiang Chunfeng Tahe Road asphalt and Test leakage protection & sealing technology, borehole track control technology, other tools, we developed the new technology of casing under top drive
drill tool combined optimization, air / atomization / foam drilling integrated and deepened the application of “one trip” drilling technology; Fuling shale
technology, fine pressure-control drilling technology, long open hole gas well acceleration matching technology was further improved. In whole
cementing technology, etc. were formed, supporting the evaluation of year, we drilled and finished 56 Fuling shale gas wells, with drill footage of

Chemical products

The total business volume of chemical products in 2016 was 69.96

STATISTICS OF PETROLEUM ENGINEERING OPERATION
In 10 kilotons
million tons, with a YOY growth of 11.3%, including volume of proprietary 6996
7000 2016 2015 2014 2013 2012
trade over 24 million tons. A batch of new products was accepted by the 6079
6287
2Dseismic（km） 1788 5143 5635 14654 23436
market, the accumulative sales volume of which (including dedicated 5823
6000
materials and differentiated chemicals) all year round was over 7.7 million
5435 3Dseismic（km2） 5989 6207 8825 11533 11813
tons. 5000
The production-marketing coupling effect became more obvious. We
strengthened market research and forecasting; production and marketing 4000

resonated with each other; special research was done into industrial chains;
3000
2016 2015 2014 2013 2012
proposal was made for industrial chain development. We established and
Wells-drilling, number 1279 2135 4618 5544 5051
improved production, marketing, research and application system and
2000
working mechanism, and intensified in-depth integration of production,   Exploration wells 449 472 575 695 1017
marketing and research. This promoted the effective delivery of market 1000   Development wells 830 1663 4043 4849 4034
information among production, marketing and research system, ensured
Wells-drilling, footage(km) 3679.1 5654.7 10849.1 13539.4 13027.4
raw materials timely supplied to downstream customers, and maintained 2012 2013 2014 2015 2016
  Exploration wells 1163.7 1144.9 1489.4 1874.6 2545.9
the stability of domestic chemical market. Total sales volume of chemial products
In-depth resource optimization. Optimization in multiple levels   Development wells 2515.4 4509.8 9359.7 11664.8 10481.5
completed covered production-marketing business, warehousing logistics,
product development, etc., facilitating operating quality promotion; through one customer” was propelled. We improved customer service level through
regional resource optimization, we controlled all-year-round inventory at accurate marketing. In order to implement customer’s demands and ensure
a reasonable level; we optimized product sales territory, production and service quality, we transformed demand information into production,
2016 2015 2014 2013 2012
sales flow direction became more reasonable, and regional coordination business, scientific research, service tasks of relevant organizations. The
Wells-completion, number 1194 2076 4471 5505 4966
had clearer division of labor; an efficient environmentally-friendly logistics customer satisfaction showed a YOY growth of 1.6 points.
system was forged from logistics efficiency, flow direction optimization, Fulfilling national “Internet +” strategy. We launched Sinopec chemicals   Exploration wells 382 430 537 703 1011
and transportation mode. The circulation expense for per ton commodities e-commerce platform “Sinopec e-commerce” successfully in June 2016,   Development wells 812 1646 3934 4802 3955
showed a YOY drop 6%. extending marketing service modes and providing customers with more
Wells-completion, footage(km) 3431.5 5527.6 10364.5 13363.8 12591.8
Setting up the concept of customer-orientation. We collected demand convenient purchase channels. With information system construction
  Exploration wells 979.4 1186.4 1357.8 1878.9 2470.2
information through customer visit, market investigation, customer service propelled constantly, we finally realized centralized listing by ERP at the end
center, technical service, customer forum, etc. An information collecting of 2016, which provided operating management and service customers with   Development wells 2452.1 4341.2 9006.7 11484.9 10121.6
system was developed, and “one policy for one product, one solution for a strong information support. Note:The listed data exclude the amount of work done in external and overseas markets.

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 Refining and Petrochemical EPC Service

273,900 m, average depth of 4,924.57 m, mechanical drilling speed of 7.42 In 2016, we executed 858 projects in China and completed engineering and application for excellent needle coke development technology
m/h, and drilling cycle of 72.9 days. design, general contracting, construction, overhaul & improvement work with poor oil slurry and comprehensive treatment for waste gas with
Continuing improvement in logging technology. Regarding to logging of key projects successfully by taking advantage of the national and the petrochemical facility were finished and put into use. The 6 projects,
instrument, SINOLOG900 online imaging logging system underwent well company’s key project construction and technical tackling projects. We such as integration and development for high residue blending and low
site experiment and test. Regarding to new technology promotion and ensured project safety and quality during the process. discharge heavy oil catalysis and cracking technology, and the development
application, dipole S-wave remote detection technology was used in Shengli Engineering service level was improved constantly. While providing and industrial application for the 2nd generation of high efficient and
and Northwest work areas to detect a distance of 70m from borehole. In excellent service for clients at traditional petrochemical field persistently, environmental protection aromatic technology were listed in “top ten”
terms of interpretation evaluation, we continued to enhance the level of we provided clients with integral solution at new coal chemical industry, tackle projects.
study on shale gas logging evaluation, to further improve the evaluation “three wastes” (waste gas, waste water and solid waste) treatment, LNG and Significant achievements were made to integral standardization of
success rate. Regarding to logging, we formed an integrated service bioenergy field. We improved overhaul and maintenance level of production refinery engineering. 964 all kinds of technical standards, such as design,
technology that could undertake optimization of oil gas zone, geological enterprises integrally. We developed special activities integrally, such as construction and technical management were prepared and published,
study, and engineering construction and extended the industrial chain; “design optimization” and “costs reduction and efficiency increase”, which which created conditions for the integral implementation of project.
the geosteering technology combining multiple professions was further laid a solid foundation for controlling production cost , improving yield and Risk prevention and control were developed practically. We finished
improved, contributing to an obvious effect on improving the development guaranteeing quality safety. revising risk-guided integral internal control manual so as to keep
effect. The “top ten” tackle tasks were completed integrally. The stage tasks management functions of risk internal control system uniform. For the 12
Remarkable progress in special operating technology. For coiled tubing of 22 company’s “top ten” tackle projects were finished completely. The major risks, such as bidding quotation, contract negotiation and signature,
work, high-pressure and pressurized work, shallow beach work, acid gas engineering, we won Jiangsu Dongtai 200 MW Marine Wind Power Booster 4 projects, such as Yuanba Natural Gas Purification Project, Low Costs oversea public safety and subcontracting management, we have made risk
field work, and deep horizontal well work, high and middle-end business Station Project of Luneng Group, realizing a new breakthrough on marine National V standard Diesel Industrial Test of FHUDS series, development management strategy, early warning index and countermeasures.
technical level and management level made progress, and construction wind power market.
records were updating. New progress in petroleum machinery integrated service capacity.
New promotion of ground engineering construction technology. CO2 pipe Type 3000 fracturing unit appeared on national “12th Five-year Plan”
transportation technology was accepted by the industry; Deyang clean technological innovation exhibition. We developed mixed drill bit, large
energy utilization passed production assessment, which marked that we torque screw, and other drill bits and drilling tools and successfully applied
had totally grasped the LNG production technology and meant strategic them to Asian deepest well and worldwide highest-altitude well, creating
significance to market development of natural gas field. “Digital Pipe new records of multiple technical indicators in the strata hard-to-drill in
Network Big Data Application Platform” project passed the acceptance of reserve and production increasing focal block. After improvement, the
National Energy Administration and realized such functions as information reliability of bridge plug made of improved composite material rose by an
release, comprehensive supervision, and auxiliary decision-making of order of magnitude; key parameters of high temperature and high pressure
natural gas infrastructure, which indicated ground engineering construction packer increased again; the erosion resistance of high pressure pipe material
entered innovation field in consultancy; by virtue of advantage in marine was greatly improved.

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 Construction for Key Projects

In 2016, we arranged 26 key projects (96 items) including oilfield Oil refining and chemical engineering. Green and low-carbon initiated; the preliminary work of Gulei Refinery Integration Project was
surface, refining & chemical and pipeline storage and transportation; development was steadily developed; gasoline and diesel quality smoothly progressed.
30 refinery devices, 10 long-distance transmission pipelines and 4 oil & improvement was accelerated in all refinery plants; 5 catalytic gasoline Pipeline storage and transportation. Guangxi LNG, Jintan Salt Cavern
gas storage facilities were completed and put into use; 295 devices of 14 adsorption desulfurization (S-Zorb) projects and 12 diesel quality upgrade Underground Gas Storage, Complex Line of Yizheng-Changling Crude Oil
enterprises (including 2 joint ventures) were overhauled and transformed. projects were finished and put into operation; the upgrade of National Multiple Pipeline, Jiangxi Finished Oil Pipeline Phase II, Anqing 8 million
Wuhan 800,000 tons/year Ethylene and Supporting Project was awarded V vehicle diesel quality was completed in advance. Zhongtian Hechuang tons/year Refined Oil Pipeline Project, Guiyang-Chongqing Refined Oil
the National High-quality Project Golden Award. The 4 projects, such as Energy Co., Ltd., Nanjing 3,000 tons/year S-MTO Catalyst Project, Maoming Pipeline Project, Baise-Kunming Refined Oil Pipeline, Shaoxing-Hangzhou
Yulin – Ji’nan Gas Pipeline, Productivity Construction Ground Project for 5 Lubricating Oil Hydrogenation and Isomerization Project, as well as Deyang Refined Oil Pipeline were completed and put into operation. Tianjin Shihua
Blocks of Qingdong in Qiaodong Oilfield, Commercial Crude Oil Reserve Base Clean Energy Recovery Project were completed and put into operation; Crude Oil Commercial Storage Base and Zhanjiang Crude Oil Commercial
in Hainan and Wuhan Branch Oil Quality Upgrade Phase II, were awarded intermediate handover of Jinling Huntsman Epoxypropane Project was Storage Base were ready for operation; construction of Tianjin LNG and
the National High-quality Engineering Awards. completed and entered production preparation stage. Sino-Kuwait Project Chongqing Fuling LNG Factory Project was fully promoted; the construction
Oilfield ground. Accumulative output of Fuling Shale Gas Field reached in Maoming-Zhanjiang Base was commenced; the construction of Zhongan of Pipeline Pressurization in Sichuan to East Gas Pipeline Project and
7 billion m3/year; the productivity construction ground project of Yuanba Union Coal Chemical Industry was recovered; overall planning of Sinopec Ningbo-Taizhou-Wenzhou Refined Oil Pipeline Project would be completed;
Gas Field was fully completed; the Fuling Shale Gas Field productivity SABIC (Tianjin) Polycarbonate and the second Arene Project in Hainan was construction of Wen 23 gas storage was accelerated.
construction Phase II was smoothly promoted.

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 INTERNATIONAL
OPERATION

Overseas Oil & Gas Exploration and Production........... 32 

Overseas Petroleum Engineering Service................... 33 

Overseas Refining & Chemical Joint Venture............... 34 

Overseas Refining & Chemical Engineering Service....... 34 

Domestic Joint-venture Cooperation. ....................... 34 

International Trade.............................................. 35
Overseas Business Layout Sketch Map..................... 36 

30 31

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 Overseas Oil & Gas Exploration and Overseas Petroleum Engineering Service
Production

In despite of lots of difficulties, such as low international oil price, sharp

decline in workload, continuous drop of service price and suspended teams,
we promoted the optimization of overseas regional resources vigorously,
adjusted operation strategies flexibly, propelled quality and efficiency
improvement, and tried our best to the break the survival and development
dilemma. By the end of 2016, we executed 470 projects in more than 40
countries, and the total contract amount was USD 21.74 billion. The sum
of newly signed contracts in the year was USD 2.861 billion, and the sum
of the completed contracts was USD 2.379 billion. We had 33,095 overseas
employees totally, including 8,678 Chinese employees and 24,417 foreign
employees.

In face of complex international operation environment and tough year was 42.95 million tons of oil equivalent.
security situation in 2016, we closely adhered to the strategic target of “to be We carried out in-depth cost reduction & efficiency improvement, got
a world-leading energy and chemical company”, gave play to collectivization rid of poverty by reform, optimized investment management and intensified
and integration advantages, insisted on the coordinated development of risk prevention and control. The accumulative investment of the whole year
bringing in and going global, and developed international operation business was decreased by 46%, production cost was reduced to RMB 2.2 billion with
proactively and stably. a decrease rate of 9.8%, and the cash operation cost of barrel oils sold was
We focused on economic benefits, executed the linked mechanism of oil decreased by USD 1.38 with a decrease rate of 10.1%. We actively promoted
price and investment, and paid more attention to intensive development. We new project acquisition, optimized capital structure, made progress in the
made 13 commercial discoveries in Egypt, Argentina, etc..The commercial negotiation of new projects in Iran and Iraq, and won the bid on #6 and #7
success rate of exploratory well reached 68.4% and increased 8.79 million exploration blocks. We handled low efficient and invalid capitals properly
tons of oil equivalent of 2P+2C storage. Stage I Yada Project in Iran was put and improved our anti-risk capability. Cash flow of RMB 66.07 million was
into production successfully; the second line of APLNG Project in Australia added for asset stripping of Beihai. By the end of 2016, Sinopec owned 50
was completed and put into production; the equity oil-gas yield of the whole oil-gas exploration and production projects in 26 countries worldwide.

2016 2015 2014 2013 2012

Equity crude oil（million tons） 34.49 36.93 34.32 32.81 26.31
3
Equity natural gas（billion m ） 10.32 9.03 8.03 7.18 3.28

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 Overseas Refining & Chemical Joint Venture International Trade

We promoted and developed overseas refining & chemical investment We advanced the acquisition of oil refining and sales business in South Africa We promoted scientific and rational purchase vigorously, strengthened The international trade amount of petrochemical product, equipment
and cooperation project proactively and steadily. A batch of overseas refining & and the lubricating oil business of Botswana, and the preliminary work of market analysis, seized favorable market opportunity and grasped purchase and material was USD 1.532 billion in the whole year, decreasing by 27.1%;
chemical projects, such as Yasref Oil Refinery in Saudi Arabia, the joint-stock the natural gas to methanol project of Iran and the natural gas chemical rhythm accurately, greatly reduced the purchasing cost of crude oil, and the volume of coal import and third party trade was USD 164 million,
Sibur Project, Fujairah Warehousing Project in UAE, Krasnoyarskiy NBR project of Amurskaya Oblast, Russia. At the same time, we organized and increased the scale of third party trade and guaranteed domestic crude oil increasing by 53%.
Project in Russia, the Lubricating Oil Project in Singapore and VESTA Storage developed the preliminary research of various overseas refinery and storage supply with the greatest efforts. Throughout the whole year, we imported We made solid progress of foreign trade of chemical industry, put more
Depot Joint Venture Project in Holland that we had invested were operating investments and acquisition projects. By the end of 2016, we had 6 oil 206.39 million tons crude oil, increasing by 4.27%, and completed third efforts to develop overseas terminal market and terminal customers, and set
smoothly. On January 20, 2016, Xi Jinping, the President of China and King refinery, petrochemical, warehousing and logistics projects in 7 countries party crude oil trade of 142.32 million tons, increasing by 14.82%. subsidiary pilot in the FTZ. The volume of import & export and third party
Salman attended the commissioning ceremony of Yasref Oil Refinery in worldwide. According to the balance of domestic oil product market, we brought trade of the whole year was up to more than 9 million tons, increasing by
Saudi Arabia, which was a landmark project of “the Belt and Road Initiative”. the advantages on 2 resources and 2 markets into full play and realized 17%.
reasonable arrangement of oil product export on the basis of ensuring The varieties of high-profit catalysts sold overseas increased obviously,
domestic oil product supply. The export of oil product of the whole year was and 30,000 tons catalysts were exported throughout the whole year.
19.19 million tons, increasing by 3.78 million tons. We further intensified the construction of overseas platform for fuel oil
We imported 3.45 million tons LNG, which was converted into 4.7 business and international operation capability; overseas business volume
billion m3 in the whole year, increasing by 2.7 billion m3 with an increase throughout the whole year was 11.57 million tons.

Overseas Refining & Chemical Engineering Service rate of 133%.

In 2016, we executed 39 overseas projects in refinery engineering we signed 3 new projects in Saudi Arabia, the contract amount of which was
section, the total contract amount of which was USD 9.759 billion. The sum USD 338 million. There were 18,687 people executing project management
of newly signed contracts was USD 1.744 billion, and contract value of USD and operation averagely on a monthly basis, including 1,298 Sinopec
2.245 billion was completed, including the total contract amount of USD employees , 7,136 domestic employees and subcontracted staff, and 10,253
1.174 billion of the Abadan Refinery Product Upgrade Project, the bid of foreign employees and local subcontracted staff.
which was won by us in partnership with ODCC in Iran. In the whole year,

Domestic Joint-venture Cooperation

We negotiated for the contract revise for Xihu Cooperation Project in and held unveiling ceremony in the Cross-strait Entrepreneur Summit; we
Donghai, the cooperation in natural gas exploration in Fu County Block, risk finished the optimization and adjustment of the plan for the 260,000 tons/
exploration of Yili Basin, and the combined studies on the unconventional year Polycarbonate Project of SSPTC (Tianjin) Petrochemical Co., Ltd. We
oil-gas oilfield of Dongying depression. We signed strategic cooperation also continued to follow up the equities of Shanghai SECCO sold by BP, and
agreement with GE and Halliburton. completed the asset pre-assessment of Shanghai SECCO.
We finished industrial and commercial registration for Gulei Project,

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 Overseas Business Layout Sketch Map

AFRICA 10 Ghana EUROPE AND EURASIA 28 Switzerland 36 Saudi Arabia 44 Hong Kong 54 Singapore Central & South America
1 Algeria 11 Kenya 19 Azerbaijan 29 Turkey 37 Syria 45 India 55 Taiwan 60 Argentina
2 Angola 12 Niger 20 Belgium 30 Turkmenistan 38 United Arab Emirates 46 Indonesia 56 Thailand 61 Bolivia
3 Botswana 13 Nigeria 21 Estonia 31 United Kingdom 39 Yemen 47 Japan 57 Vietnam 62 Brazil
4 Cameroon 14 South Africa 22 Germany 48 Korea 63 Columbia
5 Central African 15 Sudan 23 Kazakhstan MIDDLE EAST ASIAN-PACIFIC 49 Macau North America 64 Ecuador
6 Chad 16 Southern Sudan 24 Kyrgyzstan 32 Iran 40 Australia 50 Malaysia 58 Canada 65 Mexico
7 Congo 17 Tanzania 25 Netherland 33 Iraq 41 Bangladesh 51 Mongolia 59 United States 66 Trinidad and Tobago
8 Egypt 18 Uganda 26 Russia 34 Kuwait 42 Brunei 52 New Zealand 67 Venezuela
9 Gabon 27 Spain 35 Oman 43 Burma 53 Pakistan

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 TECHNICAL INNOVATION

Major Technology Development. ............................. 40 

New Product Development. ....................................41 

Sci-Tech Outcomes.............................................41 

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 Major Technology Development New Product Development

In 2016, we focused on mode turning and structure adjusting, quality acquisition technology in scale. Yuanba natural gas purification technology We completed and put HV XLPE insulation material industrial device use, polyester for heat shrinkable film and special polyester for light
improvement, quality advancing and efficiency increase and upgrading, was applied industrially and our products applied with this technology into operation successfully, and developed new products including diffusion barrier. We applied carbon fiber products into oilfield, highway
implemented innovation-driven development strategy with great efforts, could reach Class 1 natural gas standard. environmental friendly polypropylene resin of high stiffness and high and high speed rail. Moreover, the marine engine oil series and high-end
deepened the reform of technical system and mechanism, exerted itself to Refining. The long period stable operation of fluidized bed resid toughness, high-performance special resin for PP nonwovens for medical lubricating oils have been developed.
tackle problems about major and key technologies, and made fully play of hydrotreating demonstration device have been made. Excellent needle-like
the power of scientific innovation, which supported and led the sustainable coke production with low quality oil slurry was applied industrially. The
and healthy development of the company effectively. production technology of catalytic diesel to high octane gasoline have been
Oil-gas exploration and development. We further tackled the key applied in several sets of devices.
problems in shale gas exploration, and made great breakthrough regarding Chemical industry. We realized industrial conversion of syngas to
shale gas in Yongchuan, Chongqing. The Ordovician oil-gas accumulation
theory we gained and exploration technology we developed for the north
ethylene glycol technology, double-hearth cracking furnace, selective
hydrogenation of butadiene emission technology, etc. The packaged
Sci-Tech Outcomes
slope of Tarim Basin supported us to discover Shunbei Oil and Gas Field technologies of coal to light olefins, catalytic cracking of olefins and
successfully. We also developed MWD system with 175℃ high-temperature extraction technology of styrene from pyrolysis gasoline were promoted and
successfully. We promoted and applied vibroseis high-efficient seismic applied.

In 2016, we applied for 6,563 domestic and overseas patents and 4,878 of National Technology Invention Award, 1 China Patent Golden Award and
of them were granted with authorized patents; we obtained 4 second Prize 9 Excellence Awards.

2016 State Technological Invention Award won by Sinopec Group

Item Project Name Award

1
Key Instruments and Methods for Reconstruction Complicated Process of The Second Prize of State
Multi-stage Hydrocarbon Accumulation Technological Invention Award

The Second Prize of State

2
New Catalytic Material of Titanosilicate with Multi-hollow Structure in Single
Technological Invention Award
Crystal Particle and Its Key Preparation Technology
The Second Prize of State
3
Efficient Fracturing and Acidizing Reconstruction Technology and Application
Technological Invention Award
in Deep and Ultra-deep Oil-gas Reservoirs
The Second Prize of State
4 A New Technology of Polyolefin Fluidized Bed Reactor based on Acoustic Emission Monitoring
Technological Invention Award

2016 China Patent Award won by Sinopec Group

Item Project Name Award

1 Riser Reactor for Fluidized Catalytic Conversion China Patent Gold Award
2 Detection Method for Reactor of Fluid-bed China Patent Excellent Award
3 Nobel Metal-containing Titanosilicate Material and Its Preparation Method China Patent Excellent Award
4 Prevent Deflection PDC Bit China Patent Excellent Award
5
The New Way of Amide Sodium Sulfonate & the Combination as the Additive
China Patent Excellent Award
for Oil Production
6
A Hydrogenation Process Method which Combine the Liquefied Petroleum
China Patent Excellent Award
Gas (LPG)and Coking Gasoline
7
A Construction of Oil Displacement Microbial Community in Reservoir to
China Patent Excellent Award
Enhance Oil Recovery
8 Hybrid Fault Diagnosing Method based on Qualitative SDG in Petrochemical System China Patent Excellent Award
9 A Method to Produce Aromatic Nitrile in the Fluidized Bed Reactor China Patent Excellent Award
10 EOR Surfactant Mixtures and Their Preparation Methods China Patent Excellent Award

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 ENTERPRISE MANAGEMENT

Reform and Management...................................... 44 

Personnel Management . ..................................... 45 

Ideological Work................................................. 46 

Corporate Culture Building..................................... 47 

Integration of Informationalization and Industrialization.... 50

Corporate Governance......................................... 52

42 43

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 Reform and Management Personnel Management

In 2016, we carried out personnel work in strict accordance with the

development strategies of the company and the “13th Five-year Plan”, laid
stress on key points, focused on major works, serviced for developments,
and provided strong organizational guarantee and talent support for the
continuous and healthy development of the company.
Construction of leading group and cadre team: By insisting on the
principle for the Party leading state-owned enterprise and managing
cadres, we implemented Party management and governance responsibility
carefully and ensured the Party’s leadership for personnel management
for cadres and management right for important cadres. We stuck to and
improved leadership system for bidirectional entry and mutual office and
unified Party’s leadership and company governance improvement; in the
whole year, Party committees of 40 direct organizations enjoying election surplus personnel appropriately. We strengthened labor cost management
conditions finished general election. We focused on mode transformation and revised Method for Labor Cost Management of Sinopec and matching
and structure regulation, improved quality and efficiency for central tasks, documents. We improved salary distribution system, explored payment
In 2016, we gave priority to structural reform, promoted strict, careful and adjustment, and therefore achieved significant staged progress. We
appointed those capable persons as leaders at all levels and boosted mechanism where distribution is made by considering capital, technology
and practical management vigorously, improved our efficiency and vitality speeded up “4 supplies and 1 property” (i.e. water, electricity, heat and gas
normalization of cadre investigation mechanism. We strengthened cadre and management, researched and put forward leader salary management
and cultivated our competence according to the series of decisions and supply and property management) separation and transfer on the whole,
system construction, and prepared and issued “1+6” institutional system optimization scheme and improved overseas employee distribution system.
deployments made by the Party Central Committee for in-depth reform of and 52 projects were completed or entered joint plan review and approval
focused on Interim Measures for Leader Selection and Appointment in Talent team construction, training and development: We boosted
state-owned enterprises, with the aim to lay a solid foundation for tackling stage, other projects boosted steadily.
Sinopec and supplemented with other matching systems. We were strict in talent growth channel construction steadily; 10 organizations conducted
key problems of mode transformation and structure regulation. New improvements of strict, careful and practical management. We
procedure and recruit, implemented “12 bans” and improved the quality unprecedented experiment and highlighted matching system construction.
We tracked the reform progress of state-owned enterprises closely, revised Guidance on Further Strengthening and Promotion of “Three Bases”
and public trust of personnel selection and employment constantly. We advanced and deepened talent development system reform and
participated in the research on major subjects of national oil-gas system Work of Sinopec in order to further highlight the pick-up point of “Three
Labor and salary management: We deepened labor employment formulated Ten Measures on Deepening Talent Development System Reform.
reform and brought up constructive comments and suggestions. We Bases” work. We carried out the management & diagnosis of grassroots
and income distribution system reform further, guided and encouraged We improved talent flow and allocation information platform construction
implemented the decisions and deployments made by the Party Central enterprises continuously, and summarized and promoted the management
enterprises to control total number of employees, optimize employment and and talent appraisal, strengthened international talent and high-level talent
Committee for in-depth reform of state-owned enterprises, executed our philosophy, experience and practices of 37 enterprises and grassroots
improve labor cost input and output efficiency consciously. We controlled cultivation, and coordinated and executed construction for various kinds
reform and development planning during the “13th Five-year Plan” period, enterprises, including Zhongyuan Oilfield, Zhenhai Refining & Chemical
total number of employees continuously and reduced it constantly. At the of talents. Consequently, a batch of talents stood out, including 1 person
held reform management working conferences, made clear the principles and and Zhejiang Oil Products Company, which promoted the whole level of
end of 2016, our total number of employees was 752,000, with a 93,000 winning China Skills Award, 3 persons titled with National Skill Experts, 42
requirements for, target and task and strict, careful and practical management the basic management work of the Group. According to the principle of
persons decrease compared with that in the last year. We regulated labor persons rated as Central Enterprise Skilled Experts and 30 persons praised
of in-depth reform of the company, and also released the supporting reform management institutionalization, process-oriented system and procedure
dispatch, strengthened the overall human resources coordination and as Central Enterprises Youth Job Experts. We carried out training focused on
measures guided by Guidance on the Implementation of In-depth Reform of informationization, we finished sorting out such processes as investment,
allocation within the system, optimized coordination and allocation mode the central task mode transformation and structure regulation and obtained
Sinopec, which, as a result, formed policy frame system preliminarily. crude oil inventory and equity management and improved relevant systems,
continuously, improved matching policies and measures and eliminated significant achievement in key talent training. We developed remote training
Various reform tasks were made solid progress. We researched and and explored and boosted the trinity of system, process and responsibility.
employee’s worries. We promoted enterprises to optimize employment courseware, improved system function and acquired the new progress in
worked out Guiding Opinions on the Ceasing to Loss and Overcoming We evaluated systems in 2 levels, headquarters level and enterprise level, and
consciously and established incentive and restraint mechanism for training infrastructure construction. We recruited employees in 40 cities
Difficulties of Troubled Enterprises of Sinopec, clarified the paths for abandoned 147 invalid systems of headquarter level, and 1,621 systems of
encouraging conscious employment optimization and controlling total of China, unified initial examination and introduced excellent graduates
profit improvement, constructed 5 normalized working mechanisms and enterprise level, making system further simplified and optimized and system
number of employees strictly. We executed reposition and settlement of vigorously.
formulated “one enterprise one policy” implementation plan. We closed efficiency improved. We improved performance assessment mechanism,
and cancelled the 2 unprofitable companies which were supervised by highlighted classified and differential assessment, promoted the completion
the SASAC, and turned the loss of 5 enterprises in dire straits to profit. We of budget target of the company, reduction of both production operation cost
released Administrative Measures for Setup, Change and Cancellation of and management operation and realized the benefit task of the whole year.
Institutions and Legal Entities Directly under Sinopec, finished preparing Measures for the Administration of Equity Incentives of Sinopec were studied
implementing plan for management level compression and legal person and formulated to lead listed companies to improve their middle and long
number reduction and formed sliming and healthy work plan. We promoted term performance constantly. We promoted the integrated construction of
the internal reform of petroleum engineering and completed the integrative internal control and risk control, organized the inspection of the internal
recombination of petroleum engineering in North China and East China. control implementation details of 115 enterprises, and put more efforts
We started the shareholding reform of sales companies and completed in urging and supervising enterprises with many problems, such as loss
the investment attraction for restructuring of Sichuan to East Gas Pipeline of revised contents to rectify. We integrated internal control requirements
Project. We advanced and implemented special reforms, including into information system to improve internal control informationalization
the improvement of fine chemical business system and mechanism, level. Moreover, we monitored and adjusted risk response strategies and
construction of shared service center, piloting of autonomy in management countermeasures dynamically and monitored major significant risks from a
expansion of Northeast Oilfield, and Gaoqiao Petrochemical improvement yearly to a quarterly basis.

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 Ideological Work Corporate Culture Building

In 2016, the company strengthened the Party’s leadership and improving force, devoted to the job, contributing to the ‘13th Five-year Plan’” and “Qing”
corporate governance, merged Party building into production & operation, activity, which made mass organization effect played effectively. It carried
and focused on grassroots and foundation; fully played the important out “visiting thousands of grassroots families” activity of cadres at different
roles of Party organizations at different levels in direction control, overall levels, fully playing the bridge effect of mass organization and creating a
situation consideration, and implementation guarantee, which ensured harmonious and stable development environment. Cadres at different levels
Sinopec’s sustainable development and realized a good start of the “13th visited over 40,000 teams and groups and over 500,000 employees in total,
Five-year Plan”. and solved over 30,000 practical problems and helped over 50,000 needy
The company carried out mass labor competition “acting as the main workers.

Taking “to provide energy for a better living” as corporate mission, root in people’s hearts. It constantly pushed forward building of special
“to be a world-leading energy & chemical company” as corporate vision, culture, carried out activities “I put forward plans for ecological civilization”
and “being strict, careful and surefooted” as corporate style, the company and “carrying out construction of ecological civilization model enterprises in
insisted on carrying on and forward the petroleum spirit centered on “hard depth” and propelled landing of the core value concept of corporate culture
work” and “three honests and four stricts” ; consciously practiced the in a deep-going way.
core value “people orientation, responsibility, integrity, meticulousness, Strengthening model setting and promotion to drive propagation
innovation, mutual benefits”; solidly propelled corporate culture building; of civilized fashion. The company highlighted the leading role of models
constantly maintained and enhanced corporate image, which provided in corporate reform, development, production and operation, and
powerful spiritual motivation and cultural support for sustainable healthy strengthened mainstream media reporting. Taking advantage of omnimedia
development of the company. spreading and in-depth education on deed reports, it set up a big batch of
Carrying on and forward the petroleum spirit to drive corporate advanced models. The company set up the model for “carrying forward
culture building. In order to make the top-level design of corporate culture petroleum spirit in different sectors; undertaking thought release and
perfect, the company kept innovation and development on the basis of good concept transformation; innovation driving reform and development” and
traditions, and printed and distributed Sinopec Outline of Corporate Culture 18 “petrochemical craftsmen”. Besides, the company also organized 100
Building in 2016 after revision, which added the corporate style of “being “civilized service model windows” creation judging, with the theme of
strict, careful and surefooted”. It formally published Sinopec online museum “high quality and adequate quantity”, to set up a good example for cadres to
to display inwards and outwards the development history of Sinopec and follow or catch up with. It made innovation in the typical spreading mode,
every achievement it acquired. Through books, magazines, televisions, by sending the movie that reflected the good image of party cadres in state-
and other media, the company effectively pushed forward propagation owned enterprises to grassroots, which reflected the good tradition of
and landing of the core value concept of corporate culture. Such core value petroleum and petrochemical enterprise in the form of art.
concept as corporate mission “to provide energy for a better living” struck

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 48 49

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 Integration of Informationalization and
Industrialization

By seizing the new round of historic opportunities for scientific strong power for winning the upgrading battle of mode transformation carriers. “Sinopec e-commerce” (chemical product sales e-business) was
revolution and industrial reform, we positively implemented national and structure regulation, quality improvement, efficiency increase and successfully listed online and promoted in chemical sales companies. The
information strategic requirements. It took “intelligent manufacturing” upgrading. The company’s typical practice of propelling integration of building of e-business systems including refined oil sales and fuel oil sales
and “Internet +” as main lines, and initiated the integration of industrialization and informationalization and forging a new capacity won was accomplished.
informationalization and industrialization to accelerate informationalization the first prize of “Modern Innovation Achievement on the 23rd national Pushing forward the building of integrated and shared operation
construction, to forge new advantages in industrial competition, and to inject enterprise management convention”. management platform, and constructing new model of integrated
operation management and control. ERP centralized systems of 122 joint-
stock and asset companies of Sinopec were all successfully listed online. It
further integrated and regulated the business process, strengthened the
group’s management and control capacity, optimized the overall supply
chain, and propelled management innovations. On July 8, 2016, Sinopec’s
IT shared services business was put into online operation, which provided
important system application monitor, information safety and other
shared services. On December 26, Sinopec e-business unified payment
platform finished the first online payment, and was successfully put into
online operation, which satisfied the B2B online payment demand of EPEC
e-business. We finished promotion of electric bidding system, realized clarify informationalization overall management and push forward the
information management during “planning management, exchange monitor, working thought & target task of deep integration of informationalization &
result tracking” processes for bidding purchase. industrialization and publish the “13th Five-year Plan” informationalized
Strengthening informationalization planning & management, and development planning of the company. We organized management system
pushing integration of informationalization and industrialization up standard implementing of corporate integration of informationalization &
to a new level. We held an informationalization conference to further industrialization and implemented standards of 15 enterprises in total.

Pushing forward intelligent manufacturing and innovations in enterprises. This played an important role in rapidly coping with natural
production & operation model. On December 7, 2016, the intelligent plant disasters and timely eliminating hidden dangers.
pilot construction project of the company passed the acceptance. Through Pushing forward “Internet +” new commercial activities and
5 years of efforts, we successfully built Sinopec intelligent plant, Version innovations in business service model. On April 18, 2016, as the largest
1.0. Such intelligent plant building level was international leading. Zhenhai industrial product e-commerce platform in China, EPEC was put into
Refinery Intelligent Plant was rated as National “Intelligent Manufacturing business operation and opened to the society. Since its operation online,
Pilot Project”, and the construction achievement was exhibited on EPEC e-business had 32,000 registered suppliers. Its turnover in whole
“International Industrial Expo” in Shanghai. The intelligent pipeline year exceeded RMB 40 billion, showing a good growth. Oil sales enterprises
management system was completed and put into use, realizing digitalization provided customers with such services as gas filling card recharging and
and visualization of 30,000 kilometers long inter-plant pipelines among 51 credits exchange, taking online business hall, mobile APP, and WeChat as

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 Corporate Governance

Law-based Governance

The company prepared the “13th Five-year Plan” outline for legal over RMB 1.8 trillion. It carried out special inspection by law, especially to
Audit and Supervision
works and “7th Five-year Plan” law popularization planning to propel legal supervise the illegal problems in such fields as safety and environmental
construction. It implemented the gate-keeping mechanism for legal review of protection. It positively participated in research on legislation and reflected In 2016, the company finished 1,181 auditing items of various kinds, effectively developed the vanguard and sharp sword role of audit in operating
major decision, source intervention and process participation of legal work, corporate appeals. It prepared legal standards, norms, and indexes, revised effectively giving play to the important role of audit in standardized strictly according to law; in order to ensure the audit results were fully used
to provide legal service support for corporate reform and major projects. and improved the standard contract text, and finished Stage Ⅱ construction management, risk prevention & control, and incorruptness building and effectively transformed, the company focused on problem rectification.
Litigation rights protection achieved remarkable success. There were 929 of contract management information system. It strictly performed the propelling. While strengthening audit supervision, the company constantly consolidated
cases closed in whole year, avoiding and saving the loss of RMB 1.65 billion, enterprise information publishing system and finished “three certificates Insisting on serving the general situation, the company gave full play to the “Three Bases” work and made great efforts to propel audit management. The
i.e., USD 1.77 billion. The company finished the pilot work of legal risk into one” and “five certificates into one” license changing. It strengthened constructive role of audit in facilitating corporate deep reform and improving company honored the Outstanding Achievement Award for Internal Audit
prevention and control walking into system, process, job, and responsibility. trademark protection and management, as well as crackdown of the quality and efficiency; based upon supervising functions, the company Informationization of China Institute of Internal Audit.
Besides, it strengthened legal risk prevention during international operation, fake and rights safeguarding; by propelling legal education of key objects
prepared and printed the management report of legal risks, and updated the and making innovation in legal education publicity forms, the company,
management list of legal risks. It also strengthened contract management. together with 7 of its affiliated enterprises, was rated as National Advanced
In whole year, it signed 530,000 contracts, with a total contract amount of Organizations for “6th Five-year Plan” Law Popularization.

Anti-corruption construction

Deep going into “Four Styles”(i.e. formalism, bureaucratism, hedonism Strengthening power standard running. The company strengthened
and extravagance) regulation. The company deployed “review” of “Four efficacy supervision and business publicity. The Headquarters and
Styles” regulation work, and subordinate units carefully carried out self- subordinate units carried out 613 items of efficacy supervision and verified
inspection of “Four Styles” problem and implemented rectification. The 818 problems in business publicity. It continued rectifying the problem that
company published and performed the proposal for government car reform, leadership relatives were engaged in Sinopec business, and made more
which made a new step. On each important festival, the company declared efforts to supervise key fields and leaderships.
disciplines and requirements and continuously released the strong signal of Deep going into anti-corruption education. The Leading Party Group
strict control. of the company praised 11 excellent leaderships who were incorruptible
Continuous advancing of patrol inspection. The Leading Party Group of and bold in take responsibilities, and held tour public lectures of advanced
the company sent 6 inspection groups to routinely inspect 30 organizations, typical deeds. The company also carried out warning education by means
and synchronously carried out special inspection for personnel selection of watching TV feature films and printing and issuing books, to improve
and appointment. It found 561 problems and put forward 156 opinions the sense of probity. In whole company, it carried out 14,800 times of anti-
and suggestions. The Leading Party Group carried out special inspection of corruption education, with 546,000 participants in total.
leadership’s housing in whole system.

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 SOCIAL RESPONSIBILITIES

Occupational Health and Safety............................... 56 

Green & Low-carbon........................................... 58 
Community Construction....................................... 60 

Public Welfare.....................................................61 

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 Occupational Health and Safety

Safe Production

Safety entity responsibility was decomposed and promoted vertically enterprise pipelines for 1.1%. The rectification was completed 1 year in
and in an in-depth manner. Safety management responsibility of advance by overcoming the difficulties in cleaning obstacles under the
professional functional departments was fully decomposed in accordance powerful supports from relevant national departments and ministries and
with the principle of business responsibility system, while the safety local government.
management responsibility of local institutions was decomposed according Effects of strengthened site safety supervision appeared initially. Safety
to the ownership of terrain. Leader contracting system was implemented; supervision team was established by production, sales and engineering
members of leadership group in all institutions and heads of major construction enterprises to launch all-weather and full-coverage safety
departments and offices held liable for contracting the safety management supervision to production and construction site, timely expose problems
to high-risk facilities, including key oil and gas blocks, critical equipment, (if any) and form serious atmosphere; as a result, the “Three Deviations”
tank areas, oil depots and performed joint responsibility system. (deviations of operation, leadership and labor laws and rules) were obvious
Safety management system was gradually improved. We prepared decreased. We promoted video monitoring fully by increasing 65,100 fixed
rules and regulations for safety risk management, change management, video terminals and over 4,710 mobile video terminals in all enterprises, a
OHS management, as well as management of wharf and coal mine safety rise of 27.7% and 280.9% respectively. By implementing full-process video
“Sinopec Overseas Public Safety Risk Assessment Information System” and Emergency management was highlighted. We established “overseas
in accordance with the company’s Safety Management Manual. The recording, remote monitoring and rigid supervision, all these could help
effectively improve the assessment level of overseas public safety risks. remote emergency communication system” based on maritime satellites;
responsibility system and uniqueness principle of safety responsibility was make up the management deficiency in “staff supervision” and strengthen
Training of overseas public safety was well implemented continuously. the insurance for dispatched personnel, especially the staffs from domestic
fully represented in the reform of the company’s safety management system the site supervision. By launching full-involvement safety diagnosis
We organized a total of 193 shifts (classes) of overseas public safety subcontractors, was improved to ensure “full coverage” of insurance; we
for special work, thus realizing the penetration of safety management core intensively and positive motivation, the institutions greatly improved the
trainings to overseas and a total of 7,683 people were trained. The evacuated a total of 20 staffs of Sinopec from the capital of South Sudan
and strengthening risk management & control of operation. staffs’ enthusiasm in participating safety diagnosis, supervision of site by
organization of “Door-to-door training” was continued to launch overseas during the chaos caused by war; 1 staff with malignant cerebral malaria
Major safety risk identification, management and control were millions of staffs, uninterrupted identification of risk, searching of hidden
on-site training in countries (regions) including Saudi Arabia, and a total of was successfully rescued from Uganda Project; we well handled the casualty
launched thoroughly. We launched the major safety risk identification danger and safety problems.
1,917 people were trained in overseas training in the whole year. accidents of Sinopec caused by sudden disease, traffic and production
to carry out 2 rounds of major safety risk identification and assessment Safety education and training were launched in good order. We held
Implementation of overseas safety measures was highlighted. We accident.
in the whole year. We launched quantitative evaluation to security level a total of 132,400 safety training classes and made 2.699 million staffs
implemented “benchmarking perfection” to the security according to Audit of overseas public safety was launched in a solid way. In
thoroughly, developed the quantitative assessment system (QSA) of safety get access to safety training in the whole year to improve the professional
actual risks faced by running institution and executed items; regarded accordance with Specification of Sinopec for Overseas Public Safety Audit, we
management level of Sinopec. We fully promoted the application of risk manager’s capability in fulfillment. Safety simulation training and
security personnel and equipment allocation as the important examination finished public safety audit of 10 institutions and 3 national institutions/
management & control tools, such as HAZOP and JSA and launched the first construction of operation base were launched according to the principle of
contents for review and approval of public safety risk evaluation report of projects, by which, we detected 95 problems and therefore we prepared a
refining and chemical enterprise HAZOP technical application contests to “acting according to circumstances” and “making things done with whatever
new institutions and projects. A total of 27 men-times of domestic security rectification list to clarify the requirements and deadline for rectification;
greatly promote the HAZOP analysis. available” in order to promote the safety skills of staffs at grassroots level.
officer/security consultants were sent to overseas institutions/projects in the conversion from “responsibility investigation after accident” to
Major breakthrough was realized in rectification of hidden danger Emergency management was constantly improved. We actively
14 countries in the whole year, including Pakistan, Nigeria and Saudi Arabia; “responsibility investigation prior to accident and process supervision” was
in oil & gas delivery pipes and tank area. We reported a total of 18,117 promoted the optimization of emergency scheme by following the principle
the total period of task execution lasted for 2,132 days. realized.
hidden dangers of pipes to State Administration of Work Safety, accounting of briefness, practicability and effectiveness; actively prepared emergency
for 61.5% of overall hidden dangers of pipelines in China, in which, the treatment schemes of site into cards, making the rate reach 76%, realizing
hidden dangers of long oil & gas delivery pipes accounted for 98.9% and basic coverage to all critical equipment and critical (key) parts.

Occupational Health

Occupational health guarantee of staffs was promoted steadily. In Physical and mental health management for overseas staffs was
Overseas Public Safety accordance with national laws and regulations and uniform requirements strengthened. The prevention against infectious diseases including Middle
of the Headquarters, occupational health management departments were East Respiratory Syndrome, yellow fever and Zika virus was completed
By following the principle of “being safe and beneficial” in low oil price Management Method, and covering contents in nine aspects such as risk established by 40 enterprises and full-time managers were assigned by successfully. The “overseas staff physical and mental health management
environment and adhering to the policy of “people orientation, prevention assessment, safety training, security personnel and equipment allocation, 58 enterprises to further improve the occupational health management year” activity was launched; the “physical and mental health training class”
first, safe development”, Sinopec strengthened the implementation of disease prevention and treatment, traveling safety, rescue insurance, network. We revised and improved Regulations for Occupational Health and family training campus “love my family” were held; 24h psychological
responsibility system for overseas public safety management in 2016. There emergency management, audit supervision and assessment was established Management of Sinopec to decompose and practice the responsibilities for counseling hotline was established for overseas staffs; mental health
was no death accident happened in overseas public safety and “zero death” as the “footstone” for preventive overseas public safety management. preventing and treatment of occupational diseases. The list of hazardous knowledge training, psychological test, mental state training and mental
records were kept for 9 years in succession. Assessment to overseas public safety risk was indeed developed. We factors for occupational disease was established to carry out dynamic health guidance were implemented for 2,450 persons; a total of 1,939
Overseas public safety management system was improved. An overseas reviewed and approved a total of 138 risk assessment reports for overseas monitoring to occupational hazards of 79 poisons, 17 powders, as well as men-times of individual consultancies were provided. The “overseas staff
public safety management system cored by Sinopec Overseas Public Safety new projects and institutions in the whole year in order to further improve noise. emergency contact card” was prepared and distributed.

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 Green & Low-carbon
Continue Building “Smoke-free” Cities in China
Geothermal energy is a kind of clean and renewable
energy. Based on market demand and its own whole
industrial chain advantages, Sinopec proactively participated
in and implemented the comprehensive development and
utilization of geothermal energies, making contributions to

Guided by ecological civilization construction in 2016, the company fully soil and promoted management to carbon assets, which contributed to the construction of beautiful China. In succession to Xiong

implemented the concept of green development, implemented the green the improvement in energy and environment. The company was honored County, Hebei, 2 “smoke-free cities”, Wugong, Shaanxi

and low-carbon development strategy, conducted overall management to 2015 Beautiful China Environmental Protection Award and 2015 Beautiful and Rongcheng, Hebei, were built. Throughout the whole
energy and environment, deeply promoted the plan of “Energy Efficiency China Classic Case Award, as well as 2016 China Responsible Enterprise for year, heating capacity of 8.63 million m2 and heating area
Doubling ”, finished the specific environmental government action of Environment and 2016 China Low-carbon Model. of 5.71 million m2 were increased. The accumulative heating
“Clear Water and Blue Sky”, actively prevented pollution to air, water and capacity reached 38.51 million m2; accounting for about 40%
of the national conventional geothermal heating, and it could replace standard coal of 1.16 million tons/year
and reduce the emission of carbon dioxide of 3 million tons/year.

Energy Management
Environment Protection
Energy and water conservation index was fully completed. In 2016, the of refining and chemical enterprises enterprise, and to implement ranking
company’s comprehensive energy consumption for output of RMB 10,000 according to the cost of unit energy consumption, the handling cost of A stricter environment protection and management system was organic compound was promoted orderly and refining and chemical
was 0.540 ton standard coals (counted based on comparable price in 2010), pollutant per energy consumption and carbon dioxide emission cost of unit established. We issued Opinion for Group Company to Strengthen Ecological enterprises were actively organized to fully implement VOCs comprehensive
a decrease of 1.3%, and a total of 1.14 million tons standard coals were energy consumption, so as to promote the optimization of fuel quality and Civilization Construction and Implementation Plan for Strengthening remediation and timely check and verify the total amount of VOCs. The
saved; the industrial water intake was decreased by 1.1%; the company structure and have the best overall efficiency. Ecological Civilization Construction; revised and prepared 14 environment specific environment protection activity of “Clear Water and Blue Sky” was
completed all the yearly goals. The management to assessment and review to energy conservation protection management systems of the company, including Regulations completed successfully; a total of 870 environment protection projects were
“Energy Efficiency Doubling” plan was promoted steadily. We highlighted of fixed asset investment project was specified. The review and approval for Solid Waste Pollution Control and Management; again prepared and implemented in the 3 years; as a result, the intensity of environment control
the effects of energy conservation to carbon emission reduction and led procedure was specified to strictly control the assessment and review of issued Emergency Plan against Emergent Environment Accident of Sinopec was greatly improved and pollutant emission of enterprises reached the
all enterprises to reduce carbon emission by saving energy at the very energy, ensure that energy conservation measures and energy conservation 2016; made innovation in supervision and management mode and finished standard.
beginning; emphasized the combination of System optimization and global investment were implemented in feasibility study, design and construction preparing Guidance for Environment Performance of Sinopec; participated Comprehensive assessment was made to environment risk to improve
optimization to reduce the total energy consumption；paid attention to the and strictly control energy consumption on increment. We well implemented in pilot project of national pollutant discharge licensing system; continued the prevention capability of enterprises. The technical documents which
six major measures, i.e. management energy conservation, structure energy energy review to new projects in order to control energy consumption from strengthening clean production and work. conformed to environment characteristics of Sinopec were researched
conservation, technique energy conservation, key project, circular economy the source and improve energy efficiency. The action plan against pollution to air, water and soil was implemented. and prepared, and environment risk identification and assessment were
and contract energy management, so as to greatly improve the utilization Elimination of high power-consumption and lagged electromechanical On basis of fully implementing “Ten Prevention Measures for Air” of the implemented in the whole company; we again prepared and issued
efficiency of energy. A total of 418 “Energy Efficiency Doubling” projects equipment was accelerated. We eliminated a total of 1,264 transformers in state, we prepared the Implementation Scheme for Water Pollution Control Emergency Plan against Emergent Environment Accident of Sinopec 2016
were implemented in the whole year, as a result, a total of 565,000 tons the whole year, with a total power of 437,000 kW; a total of 3,937 motors of Sinopec and Implementation Scheme for Soil Prevention Control of against potential environment risks to strengthen the enterprise’s level
standard coals were saved, creating a benefit of RMB 1.08 billion. also, with a total power of 214,000 kW. Sinopec; the Headquarters signed liability agreement of environment of environment emergency management; strengthened the management
Energy and environment integrated management system was constantly Mature, appropriate and advanced energy conservation techniques were protection with Business Department and enterprise and decomposed to hidden dangers of environment protection to improve the enterprise’s
improved. The management system was rationalized; the mechanism actively promoted. We made efforts to continuously promote the mature, the annual index and work tasks; comprehensive improvement of volatile capability against enterprise risk prevention.
integration was promoted to integrate energy and environment integrated appropriate and advanced energy conservation techniques, such as DC
management into production and operation, reform development and daily bus-based rod pumped well group control technique, energy conservation
management operation system; we made innovation in assessment system and optimization of wastewater stripping – solvent regeneration device,
to carry out contrastive analysis on energy consumption integration index industrialization utilization of waste heat and pressure, optimization and
Measures against Climate Change
use of hydrogen resources in refinery plant, as well as application of heat/
cold insulation materials, so as to fully utilize the supporting effects of
technique. A total of 230 energy conservation techniques were promoted Construction of carbon asset management foundation was further methane recovery and utilization from oilfield associated gas, oil and gas
throughout the whole year, saving standard coal up to 237,000 tons standard strengthened. We organized trainings on carbon check and examination test, crude oil transportation system and gas station energetically; as a
and realizing the benefit of RMB 629 million. and carbon asset management; as a result, a carbon asset management result, the yearly recovery of methane was about 200 million m3 and the
Industrial water intake was strictly controlled. We implemented water team with about 1,000 members was formed; carbon asset management reduction of greenhouse gas emission was approximately equal to 3 million
use plan and objective management and strictly managed the total amount information system was established; the greenhouse gas emission statistics, tons of carbon dioxide.
plan; established the target of industrial water intake of the company, and monitoring and management system was improved; the research on carbon Staged objectives of carbon asset management were reached. The carbon
issued the annual industrial water intake index to enterprises. We prepared footprint of full life circle products including jet-fuel, asphalt, lubricating oil check and examination of 96 subordinate companies were completed
Method for Managing Industrial Water Saving of Sinopec to strengthen and caprolactam was completed; the research on baseline of carbon quota in 2015; the greenhouse gas reduction projects were fully sorted out;
management of enterprise water conservation. Water balance test was allocation to products, such as oil, ethylene, arene, purified terephthalic acid the developed and declared 4 CCER projects were archived and annular
strengthened. The company’s industrial water intake was reduced by 1.0% and ethylene glycol, was completed. emission reduction reached 190,000 tons; the task was timely completed by
in comparison. Substantial reduction of greenhouse gas was continuously promoted. 26 carbon trading pilot enterprises and there was carbon trading amount of
We continued developing carbon-dioxide flooding field test, increased 1.66 million tons, trading volume of RMB 27 million and income of RMB 4.57
recoverable reserve and improved crude oil recovery ratio; developed million.

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 Community Construction Public Welfare

People's Livelihood Projects Construction

Comprehensive improvement of old communities was implemented the appearance of old communities, but also created good conditions for
vigorously. Sinopec combined old community treatment with the separated separated transfer.
transfer of “Four Supplies and One Property (water, electricity, gas, heat Shantytown transformation task was implemented on a whole scale.
supply and property)” closely, and included part of the transformation plan The reconstruction of 5 shantytowns was commenced and continued, and
in coordinated project operation. The transformation of accumulatively 503 12,126 sets of housing placements were built. By the end of 2016, a total of
old communities was commenced and 327 communities were reconstructed 11 shantytowns were reconstructed, 12,436 sets of housing of placements
successfully. Moreover, 2.2 million m2 roads was renovated, greening of were completed and delivered, 9,684 households moved back to the
3.98 million m2 spaces was finished, 3.64 million m2 external walls was housing of placements stably and in order. The residential environment of
refurbished and 89,000 parking spaces were added. It not only improved staffs was improved.

Overall Improvement of Community Management

Innovation in community govern mode was made constantly. With a center and charging management system of mining area (community)
strong focus on reinforcing the construction of Primary Party Organizations management information system went put online, which improved
in communities, we promoted grid management actively, pushed forward community management level by means of information. It made community
self-governance system for community residents and the joint construction service satisfaction up to 92%. All enterprises promoted the construction of
and sharing of enterprises and locality. intelligent community according to their own characteristics and cultivated
Community culture construction was promoted actively. We carried out the new forms of “Internet+” community service.
public culture activities including building culture, square culture, elder Greening management was strengthened on the whole scale. Throughout
people culture and festival culture, cultivated good community culture, the whole year, 440,000 people participated in voluntary forestation, and
improved the cultural quality of community residents and promoted 98% of them completed their tasks perfectly. 3.17 million m2 green land
civilized and harmonious community construction. In 2015-2016, the was newly increased, the total greening area was 20,000 ha, the greening
number of 4A level and 5A level civilized and harmonious demonstration coverage rate was 35%. Moreover, 15 organizations were granted the
communities reached 60 and 21 respectively. honorary title of “National Greening Model” and “National Advanced
Information management level of communities was further improved. Greening Group”.
Pilots of property management, community service website, calling We devoted itself into public welfare activities proactively, in order to clothes, and 1 convenience bag to migrant workers); free refueling project
make contributions to building a harmonious society. was implemented for the owners of minivans returning home in the 4 gas
The hope trip of Sinopec Lifeline Express Eye-Trains. As the train hospital stations in 3 cities, including Shaoguan, Maoming and Heyuan, and free
donated by Sinopec, “Lifeline Express” travels to 3 poverty-stricken areas refueling services were provided to 1,000 minivans returning home.
each year in China to perform operations on cataract patients for regaining Gas Station with Love. As the branded public welfare project of Sinopec,
their sight freely. In 2016, Sinopec Lifeline Express arrived at Luoyang in “Gas Station with Love” provides articles, including hot water, tea bag and
Henan, Anshun in Guizhou, Ziyang in Sichuan and cured 3,248 patients there small medical kits, and service projects via special love service counters in gas
for free. By the end of 2016, Sinopec Lifeline Express Eye-Trains had been to stations. In October 2016, Sinopec Jiangsu Company, Department of Housing
18 provinces, 32 regions and stopped at 35 stations accumulatively. A total and Urban-rural Development of Jiangsu Province and Federation of Trade
of 38,046 patients had been cured by benefiting from this project. Unions of Jiangsu Province held the launching ceremony of Sinopec Gas Station
The Gas Station that Cares · A Better Road Home. In 2016, we continued with Love – Jiangsu Sanitation Station in Huxi Street Gas Station, Nanjing,
to carry out its large-scale public welfare activity: “The Gas Station that Cares • which marked that the 171 sanitation stations of first batch in 13 cities of
A Better Road Home – Show Care to Workers Returning Home for Spring Jiangsu had been put into formal use. The sanitation stations are the places
Festival”, which was upgraded based on previous activity contents. “Gas where sanitation workers can “wash their faces, have a rest, warm their body,
Station that Cares” was set up in 218 gas stations in Guangdong, Guangxi enjoy the cool, warm their food, recharge their phones and read newspaper”.
and Hunan province; the previous free “6+X” services were upgraded Support law popularization and carry forward the spirit of the rule
to “1+10+X” services; 10,000 “love red envelope” (free full refueling for of law. We had carries out social law popularization and the rule of law
once, 1 accident insurance for motorcycle drivers, 1 set of safe and warm campaign with great efforts, and had donated RMB 10 million to China Legal

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 Aid Foundation accumulatively and provided legal aid services to the mass
in poverty-stricken areas for 5 consecutive years. In 2016, more than 200
company’s “1+1” action volunteers went to 12 western provinces (regions,
cities) and 115 counties (regions) of Xinjiang Production and Construction
Corps to carry out legal aid services and dealt with more than 65,000 legal
aid cases of different kinds, making more than 100,000 people benefited
directly. We retrieved economic losses of RMB 3.917 billion for people in
straitened circumstances and the satisfaction of the aided reached 99%.
Moreover, we held 654 legal publicity lectures, received more than 70,000
people seeking for legal consultation, and solved 6,753 social contradictions,
which carried forward the spirit of the socialist rule of law and maintained
the harmony and stabilization of society.
Provide services in busy farming season. In 2016, we strengthened its
coordination and balancing of oil product resources, increased resource
input, organized thorough resource supply, improved the policies of
Volunteer services. We made great efforts to carry forward and inherit
supporting agriculture and benefiting farmers and optimized service
volunteering spirit by holding volunteer services activities. From advocacy
measures and projects, in order to ensure steady supply of oil for agriculture
to self-awareness, from “doing a good deed to be a good person”, from
in busy farming season.
single action to the combined action of multiple provinces and enterprises,
Rescue and relief work. In 2016, Sinopec Jinling Petrochemical,
it transferred positive energy to society. Volunteering spirit is becoming
Gaoqiao Petrochemical, Yizheng Chemical Fiber and Yangzi Petrochemical
a special “culture of Sinopec”. In 2016, the total number of Sinopec’s
participated in the rescue of “4·22 Jingjiang Storage Point Explosion
volunteers reached 800,000 person-times, and the accumulative service
Accident” proactively.
hours were up to 1.5 million hours.

Undertake the mission for poverty alleviation and reduction. By focusing

on major fields including infrastructure construction, industry support,
education aid, labor training, medical health and platform provision, we
provided pairing-assistance and poverty alleviation and development.
Besides, it insisted on poverty relief based on the combination of “blood
transfusion” and “blood generation” in order to promote targeted poverty
alleviation efficiently with the aim to help poverty-stricken areas improve
their sustainable development ability, get rid of poverty and become better
off effectively.
Tibet and Qinghai aid. In 2016, we invested RMB 29.97 million to aid
Tibet and executed 8 poverty alleviation projects, which supported and
promoted local economic and social development and people’s living
standard. The pairing-assistance to Qinghai was adjusted to Zeku County
from Mangya Administrative Committee, and we planned to build Zeku
E-commerce Center in 2016-2018 with the investment of RMB 30 million.
Fixed-point poverty alleviation. In 2016, we invested RMB 88.73 million
in the 6 fixed-point poverty alleviation counties and implemented 54
poverty alleviation projects, which cultivated endogenous dynamics for
local economic and social development feasibly, and improved local living
quality and living standard. RMB 5 million was invested in the water supply
reconstruction project of villages of Dongxiang County in Gansu province to
solve the drinking water difficulty of 3,775 people of 683 households in 6
towns; we also invested RMB 8.7 million on constructing roads of 40 km to
villages and RMB 5.06 million education fund.

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 EVENTS

January May     30 th   “Clear Water and Blue Sky” environment December

protection special action of Sinopec was brought off. Since its
    8th  Sinopec won one Special Prize of National Science     9 th   Organization Department of the CPC Central     6th  Party Committee of SASAC appointed Zhao Dong as
nd initiation in 2013, Sinopec had implemented 870 environment
and Technology Progress Award, two 2 Prizes of National Committee announced Dai Houliang was appointed as Chief Accountant and member of Party Committee of Sinopec
nd protection and governance projects and invested RMB 20.92
Technology Invention Award and one 2 Prize of the National President of Sinopec Group. Meanwhile, Party Committee Group.
billion.
Science and Technology Progress Award in 2015 National of SASAC appointed Dai Houliang as Director and Deputy
Science and Technology Award Conference in the Great Hall Secretary of Leading Party Group of Sinopec.
of the People.     7th  Sinopec won Special Prize of Excellent Feats in 2016
August
Award Ceremony of China Lifeline Express Foundation; it had
June th
    29   Sinopec announced that great commercial been granted with this honor for 12 consecutive years.
    19th  Under the witness of Chinese President Xi Jinping
discovery was obtained in exploration of Shunbei Oil Field in
and Saudi Arabia King Salman, Wang Yupu, Chairman of     7th  Sinopec issued 2015 Social Responsibility Report of
Tarim Basin.
Sinopec Group, signed strategic cooperative framework Sinopec.
    12th  Sinopec Natural Gas Co., Ltd. together with China
agreement with Khalid Al-Falih , Chairman of Saudi Aramco, Life and SDIC Traffic Holding Co., Ltd. singed Capital Increase
in Riyadh Palace in Saudi Arabia. Agreement of Sinopec Sichuan to East Natural Gas Pipeline
    16th  Sinopec was selected as 2016 “China Low Carbon
Co., Ltd., which specified China Life and SDIC Traffic Holding
Example”. October
Co., Ltd. subscribed 50% equity of Pipeline Company,wholly-
    20th  Chinese President Xi Jinping and Saudi Arabia King
    14th  Sinopec issued White Paper for Accurate Poverty owned subsidiary of Sinopec Natural Gas Co., Ltd, with RMB
Salman attended Saudi Aramco- Sinopec Yasref Oil Refinery Alleviation of Sinopec (2002-2016) , which was not only the 22.8 billion.
Launching Ceremony; Wang Yupu, Chairman of Sinopec     25th  Under witness of Chinese President Xi Jinping and
first White Paper that Sinopec issued but also the first one that
President of Russia Putin, Wang Yupu, Chairman of Sinopec
Group, also participated in it.
central enterprise issued.
Group, and Sechin, President of Rosneft, signed framework
    20th  Sinopec-Kuwait refining and chemical integrated
agreement of East Siberia Natural Gas Chemical Project in the
project was commenced comprehensively.
March Great Hall of People. November
    28 th  Wang Yupu, Chairman of Sinopec Group, and     7th  Fujian Gulei Petrochemical Company, a joint venture
Amine Mazouzi, CEO of Sonatrach, signed memorandum of     26th  Sinopec won one China Patent Golden Award and
    30th  “Sinopec e-commerce” started to be operated of Fujian Oil Refining Chemical Co., Ltd. and Dynamic Ever
understanding on cooperation. nine Patent Excellent Awards in the 18th China Patent Award
officially online. Investments Limited in Taiwan, was unveiled and established,
Ceremony that State Intellectual Property Office of the P.R.C
which was another significant milestone in petrochemical
and World Intellectual Property Organization jointly organized
industry cooperation and development history of China
April July in Beijing.
mainland and Taiwan.
    8th  Great Wall Lubricating Oil was granted with “Gold     20th  Sinopec ranked 4th in Fortune Global 500 issued by
Brand” of 2016 China Brand Power Index; it had been in the
US-based Fortune.
first place in industry brand power for over five consecutive     23 th   Sinopec won “2016 the Most Responsible

years. Enterprise Award” and became the only central enterprise

wining this honor for six consecutive years.
    23th  Outline for the“13 th Five-Year Plan”of Sinopec
Group was issued and implemented formally.
    18th  Epec——the largest industrial product e-commerce
platform in China, was formally put into commercial operation
and opened to the society.

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 GLOBAL OFFICES

Sinopec
Middle East Office Sinopec Russia Office

Tel：00971-4-4269507、4252272 Tel：007-499-3726690

Fax：00971-4-4252280 Fax：007-499-3726690

Add：Level 5, Building No.4, Emaar Square, Sheikh Zayed Road , Add：B203, Business Center West Park, 34, Ochakovskoe

    Dubai, UAE     Highway, Moscow, 119530, The Russian Federation

Sinopec Saudi Arabia Office Sinopec Hong Kong Office

Tel：00966-11-2175806、2175805 Tel：00852-28242638

Fax：00966-11-2175804 Fax：00852-25989366

Add：RM405, Almada Center, King Fahd Road, Riyadh, Add：20/F Office Tower, Convention Plaza 1 Harbour Road Wanchai,

    Kingdom of Saudi Arabia     Hong Kong

Sinopec Iran Office Sinopec U.S.A Office

Tel：0098-21-22700713、22729714 Tel：001-212-759-5085

Fax：0098-21-22733790 Fax：001-212-759-6882

Add：7th Floor, Ettelaat Newspaper Building, South Naft Avenue, Add：515 Madison Ave, Suite 27 West, New York, NY 10022 U.S.A

    Mirdamad Boulevad, Tehran 15499-51199,I. R. Iran

Sinopec DC LLC
Sinopec Southeast Asia Office Tel：001-202-5066425

Tel：0065-65070255、65070257 Fax：001-202-5066724

Fax：0065-68202590 Add：975 F Street, NW, Suite 520, Washington DC 20004, U.S.A

Add：9 Raffles Place, #54-02 Republic Plaza , Singapore 048619

Sinopec Europe Office
Sinopec North Africa Office Tel：0049-69-66909427

Tel：00213-23-484256 Fax：0049-69-66909422

Fax：00213-23-484258 Add：Messe Turm, Friedrich-Ebert-Anlage 49, D-60308,

Add：15, Rue De Carthage Hydra (16405), Alger, Algeria     Frankfurt am Main, Germany

Sinopec South America Office Sinopec U.K. Office

Tel：0055-21-38508216 Tel：0044-20-38233633、38233632

Fax：0055-21-25535583 Fax：0044-20-38233631

Add：Praia de Botafogo, 186, 12 andar, Botafogo - RJ, Add：Room 308, 22A, St James's Square London, SW1Y 4JH

    Rio de Janeiro, Brazil. CEP:222250-145

Sinopec Central Asia Office

Tel：007-727-3111710

Fax：007-727-3111712

Add：“Nurly Tau” Business centre, Block 4B office 8, Al-Farabi Ave

    17 Almaty city, 050059 Kazakhstan

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