Sinochem retains a competitive edge in oil trading business. The long-standing good relations with the world’s major oil producing nations and oil companies have secured us 20 million metric tons of equity crude oil per annum, backed by long-term contracts. Under the long and stable cooperation with the major oil players and financial institutions on oil trading and risk management, plus our good reputation, sound channels as well as technological advantages, Sinochem is able to provide premium crude oil and professional service for the customers within and outside of China and have become an important crude oil supplier in many countries and regions. While Sinochem satisfies the domestic demand with crude oil acquired from overseas via long-term contract and spot purchasing, Sinochem is also actively engaged in entrepot business with the refineries from Southeast Asia, Europe and North America. Our total sales of the crude oil and oil products in 2008 amounted to 42 million metric tons, with the proportion of import against entrepot at 1 to 0.7.

In 2007, in addition to the crude oil distribution license, Sinochem became one of the earliest players in the Chinese market who were granted the oil products wholesale license by the MOFCOM. This has paved the way for us to further develop the domestic oil market.  

In the recent years, Sinochem Corporation has made considerable progress in construction of the fuel oil distribution network. It completed the strategic layout of the oil products distribution networks in North China, East China and South China, reallocated the resources, increased the inputs in various regions and achieved sound social and economic results. Meanwhile, Total-Sinochem Fuels Co., Ltd. and Total-Sinochem Oil Co., Ltd. sped up the gas station installation and expanded the retail network in Bohai Bay area and East China. Sinochem also rolled out the independent network construction in Fujian province and further modified the retail network layout.

In light of the market changes, Sinochem modified the fuel oil strategy, adjusted the product varieties, developed the entrepot trading with Iran and Venezuela and consolidated our position in the domestic fuel oil market. Moreover, Sinochem also embarked on import of naphtha and marine diesel.