Sinopec, Petrochina quake losses amount to $715m

19 May 2008 06:04  [Source: ICIS news]

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SINGAPORE (ICIS news)--China’s two petrochemical majors Sinopec and Petrochina have suffered damages of around CNY5bn ($715.3m) due to the recent earthquake in Sichuan province, a CLSA analyst said on Monday.

"I would estimate a total damage not exceeding CNY3bn for PetroChina and CNY2bn for Sinopec, roughly 2% and 5% of their overall 2008 profit estimates," Gordon Kwan added.

While there were intermittent interruptions to oil and gas production in the quake-hit region, the subsurface oil/gas reserves had suffered no damages, he said.

Around 908 petrol stations, 47 oil tanks and 71 oil/gas pipelines had been damaged leading to an estimated CNY1.78bn in losses, he added.

Although many of the natural gas wells in western Sichuan were shut down last week, the companies had resumed 20-30% of previous production levels, he said, adding that Sinopec's 4,000 bbl/day Dianqiangui oil field, which had also been closed, accounted for less than 1% of the firm's total output in China.

Sinopec's Jingmen refinery, which is closest to the quake-hit region, was currently producing 6,000 tonnes/year of diesel and 1,000 tonnes/year of jet fuel to provide sufficient fuel for rescue missions.

PetroChina had also deployed 16 tank trucks and 5 fuel tankers to the affected area to aid in the rescue mission while the company’s Lanzhou refinery was supplying Sichuan with oil products.

 ($1 = CNY6.99)

Have you personally or your business been impacted by the earthquake in China? If you have any information or thoughts you would like to share, post your comments or photos on the ICIS China Earthquake  forum. You can also send photos and video directly to us at icisnews.asia@icis.com or icisnews.europe@icis.com


By: Brian Myung
65 6780 4359



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