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Oil Producers Add Powerful Member
Efforts on the part of China's oil industry to solidify its global position could get a boost from the birth of an oil-orientated energy conglomerate.
China Petroleum Engineering Co Ltd (CPE), the country's first engineering group to specialize in both petroleum and petro-chemicals, opened yesterday in Beijing.
Liu Yi, chairman of CPE's board of directors, said the oil engineering industry is facing fierce competition from foreign counterparts that will only intensify after China's entry into the World Trade Organization.
The establishment of CPE, a combination of four powerful engineering institutions controlled by the China National Petroleum Corp (CNPC), will enhance the country's professional and technological advantages in the world's oil engineering market, Liu said.
CNPC formerly owned 139 engineering institutions scattered throughout its numerous enterprises. Liu explained that the sheer number of the institutions limited their professional range and caused unnecessary conflicts within the company.
Liu said the CPE has plans to join hands with China International Engineering Company and China Oil Exploration and Development Company in competing on a global level.
By providing a package of services ranging from oil development, collection, transportation, refining and utilization, the new engineering group will sharpen CNPC's competitive edge, he said.
Liu said he expects CPE to rank as one of the top domestic engineering companies within the next five years. In a decade, he said, he thinks it will be one of the best in the world.
Liu predicted the company's output and profits will increase at more than 15 per cent a year.
CPE is currently preparing to take part in the massive west-east gas transmission project. Liu said the CPE is looking forward to the opportunity to show off their strength.
The company now has assets totalling 290 million yuan (US$35 million) and a staff of 2,045.
The new company was set up by CNPC with investment from Sichuan and North China oil administrative bureaux and Jilin Petroleum Group.
Under direct management of CNPC, CPE boasts 39 first-class engineering sector certificates awarded by the central government.
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