Sinopec says to spend $17.6 bln in 2 yrs to lift output

Published: 24 Aug 2009 00:29:39 PST

HONG KONG, Aug 24 - China's Sinopec Corp <0386.HK>, the world's No.2 oil refiner, said on Monday that it plans total capital expenditure of 120 billion yuan ($17.57 billion) over the next two years to boost refining and production.

Vice-President Lei Dianwu made the remarks at a results news conference in Hong Kong.

Sinopec, second to Exxon Mobil in terms of capacity, posted a record quarterly profit on Sunday that widely exceeded expectations on the back of higher fuel prices and falling crude oil prices, underscoring the turnaround in fortunes for China's once-struggling refiners. [ID:nHKG84686].

Beijing's fuel price reform grants refiners a guaranteed profit margin only if crude stays below $80 per barrel.

Shares of Sinopec rose nearly 5 percent in the morning session, but gains were pared to close at HK$6.97, up 0.72 percent. ($1=6.831 Yuan)