Sinochem company has started to extend to the upper branch of oil since 2002. In 2002, SINOCHEM Petroleum Exploration and Production Co. Ltd was established. In 2003, Sinochem acquired two Petroleum companies and put them under Sinochem’s total ownership - Atlantis Holding Norway AS and CRS Resources (Ecuador) LDC. These two companies enjoys all or part of the Petroleum and gas interest under 12 14 Petroleum contracts scattered in Tunisia, UAE, Oman and Ecuador, etc.

After the construction of more than a year, Tunisia’s Oudna offshore Petroleum field, which Sinochem possesses 40 percent interests, was put into operation on November 12th 2006. The daily output of an Petroleum well has reached 22.4 thousand barrels, which exceeds the design level of the original exploration plans. The success of Oudna offshore Petroleum field, not only guarantees Petroleum production in Tunisia, but also pushed the Sinochem’s petroleum output to a historic high.

In June 2007, offshore production platform of UAQ gas field project in United Arab Emirates, of which Sinochem owned 100% interests, was successfully installed. It is planed to be completed and put into operation at the end of 2007. It will further expand the business scale of oil and gas exploration and development. The 16 Block, which locates in the middle of Orient Basin in Ecuador, has maintained the steady growth of its crude oil output.

In February 2007, Sinochem Corporation purchased 100% shares of New XCL, an American company. Through the acquisition, Sinochem possessed 24.5% non-operator equities of Zhaodong oil field that located in the Bohai Bay of China, and made breakthrough in the field of oil and gas exploration and development.