Sinopec to cut overseas spending, trim inefficient oil output in 2015




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BEIJING, – China’s -largest state energy group, Sinopec Group, cut overseas investment by 22.2 percent this year and trim inefficient oil output abroad, among measures to be taken response to inspections by the country’s graft watchdog.

President Xi Jinping has warned that corruption threatens the survival of the ruling Communist Party and his -year anti-graft has brought down scores of officials the party, government, military and state-owned enterprises.

As part of the , the China Central Commission for Discipline Inspection (CCDI) is stepping up inspections at conglomerates owned by the central government.

Sinopec, which has investments 27 countries including Russia, and Iraq, planned to trim overseas output this year by 8.4 barrels, according to a statement posted on the CCDI’s website (www.ccdi.gov.cn) detailing problems uncovered after a month-long inspection late last year.

That would be roughly 2.5 percent of total output Sinopec Corp, the state oil group’s listed entity.

Apart similar problems uncovered at other state-owned firms such as nepotism, big-ticket procurement without open tenders and using funds for holidays, CCDI said some of Sinopec’s overseas investments had generated low returns or even no revenue after years of input.

The report gave no further detail on where the cuts on spending and output would be made.

The report came days after the watchdog said Wang Tianpu, a former general manager of Sinopec Group, had been put under investigation for “serious disciplinary violations”, a common euphemism for graft.

*(Reuters)*