China’s Sinopec said Monday it will move forward with a new 1.5 million tonne per year crude production hub.
According to a social media post seen by Reuters, the company will build the hub in the Tarim Basin.
Construction is expected to begin in 2016 and be completed sometime in 2020, Reuters said.
Further details about the crude production hub have not been disclosed yet.
Sinopec’s recent discovery at the Shuibei oil field in the Tarim Basin holds about 1.2 billion tonnes in oil reserves and about 500 billion cubic meters of natural gas reserves, Reuters said.
According to Reuters, the company has already completed eight of its ten planned exploration wells for the Shuibei field, with six of the wells producing commercially viable oil.
Sinopec saw its net cash flow from operating activities climb 13 percent year-over-year to $11.39 billion (RMB 76,112 million) for the first half of 2016.
The company’s operating income fell about 15 percent year-over-year to about $131 million in the first half of the year.
Net profit attributable to equity shareholders declined 21 percent year-over-year to about $2.88 billion in the first half of 2016.
Sinopec’s operating profit tumbled down to $5.25 billion (RMB 35,108 million) in the first half of the year, a 13.3 percent year-over-year decline.
Net cash generated from operating activities climbed 13.4 percent year-over-year to $11.39 billion in the first half of 2016.
The company’s oil and gas production declined to 218.99 million barrels of oil equivalent in the first half of the year, down nearly 6 percent from the same period last year.