Bloomberg News

Sinopec Drilling Offshore, On-land for Oil, Gas, Spokesman Says

June 17, 2009

China Petroleum & Chemical Corp. (386), Asia’s biggest refiner, is drilling offshore for oil and gas in addition to on-land sites, a spokesman said.

Locations of wells can’t be disclosed as “they are business secrets,” Huang Wensheng, a spokesman for Beijing- based Sinopec, as China Petroleum is known, said by telephone.

“We drill hundreds of wells a year, with some on land and some in the sea,” he said, declining to comment on a newspaper report that the Hong Kong-listed refiner is exploring areas in the South China Sea.

Sinopec may drill its first deepwater well next year in the South China Sea, the Wall Street Journal said today, citing two unnamed company officials. Such a move would mark the refiner’s first attempt at deepwater offshore drilling, the newspaper said.

China’s oil companies are scouring the planet and drilling deeper to meet the nation’s energy needs. Sinopec is seeking to increase stakes in oil and gas projects in Africa and Latin America to secure supplies and guard against the risk of a rebound in oil prices, Chairman Su Shulin said on March 30. Crude oil in New York has risen 57 percent this year.

To contact the reporter on the story: Yu-huay Sun in Taipei ysun7@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.


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