Sinopec Group has several construction units

The last edit to this post was made by Zhi Zi Ming on 2011-1-26 at 16:18. According to industry terminology, the project owner is usually referred to as the construction entity; therefore, PetroChina has many projects, and there are likewise many such construction entities. The original poster is likely interested in construction companies, rather than the project owners. The construction companies include CNPC First, Sixth, and Seventh Construction Groups, Jilin Chemical Construction Company, and North China Oil Construction Company; there are also several other companies that specialize in pipeline and oil field construction. However, the aforementioned companies had previously reorganized together with several design institutes of CNPC to form new engineering companies: CNPC First Construction merged with CNPC East China Institute, the Sixth Construction Company merged with Global, the Seventh Construction Company merged with CPE, and Jilin merged with? (I can’t remember)....

The people from First-Class Construction are amazing; we’re worried about them when it comes to debugging our equipment on site. Those from Sixth-Class Construction are quite good.

Reply to 2# WiseOne: Merging is done to adapt to project models like EPC, right?

Yes, such strong partnerships are aimed at maximizing the advantages of the design and construction companies under CNPC, by leveraging the group’s expertise in construction, as well as its technical and managerial skills, throughout the entire project lifecycle – from the early FEED stage to design, procurement, construction, and commissioning – so as to achieve the best possible outcomes for the group’s development. However, it remains to be seen whether such a forced combination can achieve an ideally strong partnership; I am optimistic about the collaboration between Global and Liu Jian.

Reply to 5# Zhi Zhen Ming: The engineering companies under CNPC include: 1. Global HQ: It has several wholly-owned and controlled engineering companies (including the previously integrated Lanzhou, Dushanzi, and Fushun design institutes within the group, as well as the Sixth Construction Company). These companies focus on the chemical aspects of large-scale refining and chemical processing projects, namely chemical plants based on ethylene production, including those for PP, HDPE, EO/EG, etc. They are also competent in LNG projects (acting as EPC general contractors focused on design work)； 2. CPECC, a construction company: it integrates the East China Institute, as well as the First and Seventh Construction Companies. The strategic focus was originally on CNPC’s overseas projects; in recent years, following the integration of First Construction, Seventh Construction, and East China Institute, it has taken on various EPC projects within the domestic sector, with an emphasis on the refining industry ； 3. Pipeline Bureau: Its focus is on the construction of various long-distance pipelines and large storage tanks as well as other storage and transportation facilities (it is a company that specializes in construction); last year, Huabei Oil Construction was integrated into this organization ； 4. Engineering design companies: These integrate various previous design institutes and bureaus from different oil fields; they are mainly involved in the design of oil field and surface facilities, including gas stations, CNG stations, pressure regulation stations, etc. (They are EPC general contractors with design as their core activity) ； 5. Kunlun Engineering Company: formerly the China Textile Research Institute; in 2009 it merged with Daqing Petrochemical Design Institute and Liaoyang Design Institute (EPC general contractors focusing on design work) ； 6. Northeast Refining and Chemical Engineering Company: It integrates former entities such as Jilin Huajian, Jilin Design Institute, and Jilin Supervision; its headquarters is located in Shenyang. Initially, it focused on inspection, maintenance, and repair work within the system, but it now primarily undertakes EPC general contracting for various units in the chemical sector of large-scale refining and chemical projects. There are also some construction units that were originally part of oilfield companies or petrochemical firms (with relatively small scales), which still need further integration.

During the integration in 2009, Xinjiang Oil Construction was incorporated into CPE. Dalian Design Institute was incorporated into Kunlun Company.

Reply to 6# cage_zhao: Northeast Refining & Chemicals and Global still have overlapping business areas – wouldn’t that mean they’re competing with each other for clients? Or regional division

Reply to 8# Hope Road: It’s definitely impossible for the businesses not to overlap at all. There are already so many aspects involved in petrochemical projects; it comes down to who does things first and does them well – performance is crucial. Within the CNPC system, projects are uniformly “balanced” and “coordinated” by higher-level authorities. There is no issue of competing for business internally. In the external market, people generally keep in touch with one another. There is a unified higher-level management authority; it is necessary to pursue a coordinated approach and maintain unity.

What was said upstairs is correct – this is purely a planned economy!

Within CNPC, everyone is like family, and the operations of various companies under CNPC are coordinated uniformly by the company. Of course, each design institute has its own focus, and every construction company wants to get a share of CNPC’s business. It can’t really be called competition – after all, one can’t let their own children starve – but it does affect the quality of life. There are uniform standards for the projects assigned, and you have to carry them out whether you want to or not; otherwise you’ll suffer losses and have to settle the accounts later. There are still several projects that haven’t been settled yet.