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About Us
Southernpec Corporation, a restructuring enterprise subordinated to Sinopec, was established in 2002 and headquartered in Guangzhou Tianhe CBD. The past decade has seen leapfrog development in Southernpec. Now it has grown into an integrated energy enterprise with its activities around the world. In Southernpec, we offer our clients qualified products and professional services trading, storage, logistics, supporting finance and business investment in power industry. In 2011, our sales volume exceeded 10 million tons while sales revenue exceeded 57 billion RMB. Since 2010, Southernpec has won the honor to be Top 500 China Enterprises and Top 100 China Service Enterprises for 4 consecutive years, which greatly enhanced the company’s comprehensive strength and social recognition.

Southernpec Corporation operates mainly in five business arms: Oil and Gas Development, Energy Trading, Storage and Logistics, Supporting Finance, and Business Investment.

The development in oil and gas field is placed as the key strategy by the Second-Decennuim-Plan of Southernpec, and is also the important step to integrate our industry chains from upstream to downstream. Since recent years we have enhanced the progress of Kayo Oil-Gas Field Project in Congo and the progress of Alay Oil-Gas Field Project in Kyrgyzstan, these projects optimize our industrial structure and form our fundamental competitive strength at global level.
The Kayo Project is located around Pointe-Noire, the economic capital and an oil city of Congo. It covers 929 square kilometers, and is expected to provide 200 million tons of oil. Following the development of this field, Southerpec will plan and construct a 3000-acre industrial zone in Congo, inside which great crude oil processing and refining capacity, gas refining processing capacity will be built to increase the add-value within the resource exploitation. Southernpec will also gradually develop the oil field and gas field projects in Kyrgyzstan, push forwards the extended support to the industrial chains, and upgrade our international operation capacity through up, mid, and downstream.

Energy Trading is one of the most fundamental business arms in Southernpec, it concerns Energy I Department, Energy II Department and Chemical Department.
Energy I Department mainly operates in crude oil, natural gas, fuel oil, heavy oil, petroleum coke and naphtha. The annual business volume exceeds 5 million tons and regional cooperation around China, Southeast Asia, West Africa, Middle East, Europe and America is achieved.
Energy II Department operates in clean energy, refined oil, oil additives and other products. The sales volume exceeds 1.5 million tons which is the leading result among Chinese companies.
Chemical Department’s business covers aromatics, benzene derivatives, polyester, coke chemicals, rubber, agricultural chemicals, oil and fats, fine chemicals etc. The annual volume reaches 2.5 million tons, making Southernpec a decisive trader for raw chemical products.
Southernpec Energy Trading arm remains committed to building a comprehensive operating network that combines domestic and global, upstream and downstream operation. In mainland China, Southernpec operates in South China (Guangzhou), East China (Shanghai), Southwest China (Chongqing), Northwest China (Yinchuan), North China (Tianjin), and Northeast China (Shenyang). While in overseas markets, our business covers regions of Southeast Asia, Middle East, and West Africa. Over the past ten years, we have synergized resources and built extensive and close business relationships with many petrochemical giants such as Sinopec, CNPC, CNOOC, BASF, Formosa, Mitsui, BP and Vitol, which form a platform and customer group that combine the upstream and the downstream, and links Europe, Asia and Africa together.
The operational volume has increased 30 times than that of infancy; the annual growth rate is 76.1%, while the sales revenue has increased 86 times with an annual growth rate of 85.2%. The accumulated contributed tax over the past ten years exceeds 4.3 billion RMB, and we have achieved a leapfrog development is achieved.

Storage and logistics is the backbone for Southernpec. We remain committed to offering the customized and optimal warehousing solutions for customers. Services cover every link in petrochemical logistics, including storage, terminals, transportation and offshore oil supply. After ten years’ growing, Southernpec has built dozens of modern storage facilities as well as an experienced talents pool. A mature logistics network throughout the country and Southeast Asia has thus been formed.
Southernpec’s warehousing facilities now spread along main ports of river and coastal areas in China and Southeast Asia waters. The total storage capacity can reach 1.8 million cubic meters. Southernpec enjoys 1 bulk jetties with 20-thousand-ton capability. In Southeast Asia, with operation licenses authorized by Port of Singapore Authority, we operate 11 vehicles, including three VLCCs for international transport and storage of crude oil and fuel oil in key waters. The total capacity is up to 1.5 million tons.

At Southernpec, we grow business with constant self-adjustment and self-improvement. Based on trading and supported by own assets, we take full advantage of various kinds of financing products to support business home and abroad. With innovative financing methods offered by different banks, we strive to reduce the corporate financing cost to the lowest. Meanwhile, under the privilege of warehousing facilities, we are deepening strategic cooperation with financing institutions and we provide upstream and downstream clients with comprehensive financial services like “supply chain financing” that covers the complete links on supply chain, such as purchasing, storage and distribution, to raise added value for customers, making it a competitive edge uniquely for Southernpec.
For reaching a greater business platform, Southernpec is pushing the market listing plan for the group, in order to raise fund for oil-gas field development, and expansion projects on storage and logistics arm.
Our impeccable and scientific capital management system enables us to improve the approach on management and risk control. We seek to benefit the company and the community by excellent capital management and achievement.

Business Investment arm is involved in investments on many major projects and emerging industries. By scientific planning, step-by-step implementation, and introduction of strategic investors, we have gained supports from financial institutions and realize health management of company’s assets. In three to five years, we plan to build large liquid chemical bulk storage bonded base in Kemen Port of Fujian province, which includes 300,000-ton jetties, 5,000,000-m³ underground water sealed storage depot for crude oil reserve, 1-million-m³ storage facilities for refined oil, chemical products reserve. In addition, we are pushing the development of Nansha LNG storage project, Huihai bucket project and special pressure tank project. A headquarters base and its supporting facility construction in Guangzhou is also under planning for better global operation.

These five business arms: Oil-gas Development, Energy Trading, Storage and Logistics, Business Investment and Supporting Finance operate as an integrated one. They interact and improve with each other, forming a healthy and stable industry mix.

Southernpec works to build a reasonable and sound internal control system for sustainable development of the company. We effectively circumvent the operational risks by forming a modern management system that combines strategy, operation, management, investment, finance, legal matter, and social responsibility. We also developed the supportive SAP system, BO reporting system and BYTTER financial system to build a powerful information center with supports on transactions, management and decision making. By doing so, we realize co-work among subsidiaries and branches home and abroad and the system is becoming the nerve center of Southernpec.

Talents are crucial in company development. Southernpec believes in people-oriented philosophy and is willing to bring out the best of talents. We are committed to offering a healthy, harmonious environment for self-development by improving the training mechanism and occupation development channel.

Guided by the idea of scientific development, Southernpec always attaches great importance to corporate social responsibility and takes active initiative in promoting work safety and environmental protection. Southernpec manage to lower energy consumption and reduce environmental footprints by application of advanced technologies and management approach. Wherever we operate, we are committed to building good corporate image. Over the past ten years, Southernpec has offered our customers qualified products and customized services with zero major incidents in terms of safety. To staffs, Southernpec established employees’ mutual fund and offers timely support to whom in hardship. To society, Southernpec responds actively to the call of government and gives back to the communities where it operates. Philanthropic initiatives in education, environmental protection, culture and medical care reflect our willingness to share development results with the general public.

Southernpec now is standing at a new starting point to explore innovative way for growth. We are committed to becoming a leading player in industry as well as a world renowned energy enterprise. Looking ahead, Southernpec will seek to achieve sustainable growth with partners from all walks of life.
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