In Huizhou refining and chemical project, the most important one in the middle reaches of CNOOC, a change is taking place in the middle reaches of CNOOC.
China National Offshore Oil Corporation (hereinafter referred to as "CNOOC"), which used to rely on upstream oil and gas development, is now stepping up to make up for the short board in its midstream. Since the end of 2015, CNOOC has promoted the reform and reorganization of refining industry, which has been implemented for one year. In this critical period of "short board" construction, what new changes and momentum have taken place in its refining and chemical sector?
Zhao Yan, general manager of CNOOC Huizhou refining and chemical company, is one of the Chinese representatives for the handover. "Today's handover activity is arranged from the moment I open my eyes to nine or ten in the evening." Zhao Yan said apologetically to the reporter, "there are too many things, and there is no time to give a detailed introduction to the media. I'm really sorry."
In fact, what makes Zhao Yan busier may still be behind. The transferred petrochemical complex is adjacent to CNOOC shell's existing petrochemical complex in Daya Bay, Huizhou, which can increase its ethylene cracking production capacity by 1.2 million tons per year. Connected with it is Huizhou oil refining phase II project, which is a wholly-owned expansion project of CNOOC. The project is in the final rush period of installation operation and is expected to start trial production at the end of March next year.
In the long-term decline of international oil price, Huizhou oil refining project in CNOOC's profit contribution chart has jumped from an inconspicuous position to an important role in supporting CNOOC's profit level. The second phase of Huizhou oil refining project under construction, as well as the chemical project jointly invested with shell, are also expected to become an important source of profits for CNOOC in the future.
CNOOC Huizhou refining and chemical phase I is the largest and most important project in the middle reaches of CNOOC, with a total investment of 17.8 billion yuan, an annual crude oil processing capacity of 12 million tons and 15 categories of 11.5 million tons of products. Huizhou refining and chemical phase II project is the largest refining and chemical integration project under construction in China, with a total investment of 46.6 billion yuan. 15 sets of crude oil filtration units, 12 sets of chemical units, coal gasification hydrogen production and power station combined units are newly built.
Due to the decline of international oil price, the position of Huizhou refining and chemical phase I in CNOOC's profit territory has changed significantly. From January to October this year, the profit of Huizhou refining and chemical phase I project exceeded 3 billion yuan, and the total profit by the end of this year is expected to exceed 3.5 billion yuan, a record since the project was put into operation in 2009. In this case, CNOOC has a relatively high expectation for the phase II project to be completed.
Zhao Yan said that Huilian phase II project is ready to start feeding at the end of March next year and put into full production at the end of May. Next year, 5.5 million tons of crude oil processing capacity is planned for phase II project.
Huilian phase II project is not only to expand the scale of phase I, its completion will also change the crude oil processing varieties and market channels of phase I project. Phase I project mainly processes high acid heavy crude oil. 62% of the crude oil processed from January to September this year is domestic offshore crude oil and 38% is imported crude oil.
Due to the prominent contradiction of domestic product oil surplus, and the more fierce market competition in South China where Huizhou refining and chemical industry is located, expanding the foreign market can be regarded as the main means to increase the sales volume of Huizhou refining and chemical industry. At present, its exports of gasoline, diesel and kerosene are mainly from Southeast Asia and Australia. After the completion of the second phase of the project, Huizhou refining and Chemical Co., Ltd. may become the refining and filtering system project with the highest proportion of domestic export oil products.
"We are the closest refining project in China to the Southeast Asia free trade area. Taking advantage of our geographical location, we have started to export more products this year." Zhao Yan said, "after the second phase is put into operation, there will be 14 million tons of refined oil output in the first and second phases of Huizhou refining and chemical industry, and more than 50% of the output must be exported, otherwise it will be difficult to digest in China. We have planned the market channels in the future. The proportion of raw material processing, i.e. export, will be as high as 50%, mainly exported to Southeast Asia and Australia. The remaining 30% of the partitions are supplied to Huizhou Petrochemical Park, and the other 20% are sold in the domestic South China market. "
The expansion of Huizhou oil refining project is the key to the reform of CNOOC's refining and chemical sector, and the transformation of its refining and chemical sector is not only there.
On October 30, 2015, the Party group of CNOOC approved the implementation plan of refining industry reform. At the beginning of 2016, CNOOC began to implement the reform and reorganization of refining industry. According to the "1 + 4" reform plan, we will realize the integration of oil and gas utilization, the integration of refining and sales system, the integration of refining technology system, and the establishment of Huizhou refining and chemical integration base to form a new refining and chemical company.
As for the specific details of the reform, according to the information obtained by the reporter of energy magazine, CNOOC's newly established refining and chemical company has integrated its original oil and gas utilization company, original refining and chemical company, Daxie Petrochemical Company, sales company and Shandong Haihua. CNOOC's original refining and chemical company has 9 tertiary units with assets of 53.1 billion yuan and 7500 employees; the newly established refining and chemical company has assets of 108.3 billion yuan, revenue of 170 billion yuan and more than 30000 employees.
On the basis of establishing refining and chemical company as the top management organization, CNOOC has also established sales companies in South China, East China and North China. According to the principle of "Three Guarantees", namely "resources, markets and benefits", the three regional sales companies and the regional production enterprises become a community of interests.
Zhao Yan felt clearly about this reform. "Now the production and sales of our refining and chemical company are more closely integrated. How much inventory we have and how much sales we have gone,