China oil giant suffers 36.2 bln yuan of refining loss in 2007

China National Petroleum Corporation (CNPC), the country’s leading oil producer, lost 36.2 billion yuan (5.4 billion U.S. dollars) in its oil refining and processing businesses last year, according to a company report released on Thursday.

The company attributed the loss to the huge gaps in soaring world oil prices, the low state-set domestic price and its “overloaded operation” to ensure domestic supply.
Despite the surging prices in the international market, China last year ordered the country’s oil producers and refiners to collect their strengths in combating the shortages caused by extreme weather conditions.

In 2007, the CNPC devoted about 100 billion yuan to oil prospecting and another 32.2 billion yuan in oil refining projects in a bid to ensure domestic supply.

Xinhua