Founded in 2000 by China Petrochemical Corporation, (Sinopec Group), China Petroleum and Chemical Corp. (NASDAQ: SNP), or Sinopec, has risen to become China’s top refiner and second largest crude oil producer. China’s sturdy economic growth, paired with increased oil refining capacity is responsible for the rise in crude oil imports.

Through more than 80 subsidiaries, Sinopec operates as an integrated oil and gas, and chemical company in the People’s Republic of China and Hong Kong. The company is involved in the exploration, development, production and marketing of crude oil and natural gas; transporting crude oil and natural gas and other products; and refining crude oil into petroleum products. Sinopec is also the largest producer and supplier of oil products including gasoline, diesel and jet fuel, as well as many major petrochemical products such as synthetic fibers and chemical fertilizer.

The company recently announced it will purchase 160,000 barrels per day from the National Iranian Oil Company in the coming year – three times the 60,000 barrels per day purchased last year. The agreement revolves around the Yadavaran field which holds a potential of 3 billion barrels of oil. Though work has not yet begun, according to a Reuters report, the deal has been finalized. The announcement follows word of a recent agreement between Zhuhai Zhenrong Corp. and Iran in which China will buy 20 million tonnes, or 400,000 barrels per day of Iranian crude oil for next year – nearly 6% of China’s total crude demand.

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