Sinopec drills deep into Africa

Sinopec has been trying to recruit more local employees to raise their incomes and cultivate a talent pool of professionals in Africa.

In Nigeria, Sinopec Addax helped 450 local community members in the past nine years through a training program, which helped them either start own businesses or get a job.

In 2012, Sinopec learned that people in two villages in Gabon (Gongouwe and Ineganja) had been using rainwater in the absence of clean drinking water.

After study and field investigation, the company allocated $200,000 from its community fund and hired local well-drilling companies to dig a well for each village.

The company handed the wells over to local governments with official water quality compliance reports in October 2012, to the appreciation of residents.

Looking forward

Proven oil and gas reserves has been expanded rapidly in Africa, and not only in traditional energy-rich regions in the northern and western parts of the continent. Exploration work has also achieved some important successes in southern and eastern Africa in recent years.

According to a CNPC Economics & Technology Research Institute report, Africa's oil reserves stood at 132.1 billion barrels at the end of 2011, accounting for 8 percent of the global figure.

There are more than 60 oil and gas projects under construction in Africa, most of which will be in operation by 2017.

However, since African countries lack refining capacity, they favor more investment in downstream businesses such as refining, which can bring more profit in the sector, instead of just exploration at the upstream end of the business, said Wang Zhen, deputy head of the China University of Petroleum.

Chinese companies should shift their strategy from internationalization to localization in their African businesses, experts said.

Sinopec entered into a framework agreement on cooperation with PetroSA, the national oil company of South Africa this year, to conduct joint research at the world-class Mutombo petroleum refining project in an industrial park in Port Elizabeth, South Africa.

"Looking into the future, we will adhere to the business philosophies of integrity and win-win cooperation," said Fu.