Oil rout echoes in China as Sinopec unit shuts crude fields


HONG KONG: A unit of China Petrochemical Corp, the country’s second biggest oil and gas producer known as Sinopec Group, will shut four oil fields in the eastern province of Shandong for the first time in its more than half a century history.

Sinopec Shengli Oilfield Co. will shut the Xiaoying, Yihezhuang, Taoerhe and Qiaozhuang fields to save as much as 130 million yuan (US$19.9mil) in operating costs, the company said in a statement on its Weibo account. China Petroleum & Chemical Corp, the listed unit of Sinopec Group, needs crude to average above US$50 a barrel to break even, according to Sanford C. Bernstein & Co.

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