Zhao Rifeng, Director of Sinopec Refining Department, led a survey team and visited FREP for ad hoc survey of refining margin improvement on July 11. Lu Dong, FREP Chairman and President, Parut Chatikavanij, FREP Vice President, and Liu Yanchang, FREP Operations General Manager cordially met with the delegation led by Director Zhao Rifeng and had in-depth exchanges on relevant topics.

Director Zhao Rifeng said that Li Chunguang, Sinopec Corporation President, led a delegation to FREP for survey in May, helped FREP to make deep analysis on current tough situation and existing problems and raised specific requirements about digging potential and improving efficiency, turning loss into gain and getting out of the red. This time, the survey team came for ad hoc survey about refining margin improvement and carried out in-depth discussion and study with crude slate, processing rate, global process optimization being focused on. We have confidence to promote the profitability of FREP. 

Vice President Parut Chatikavanij expressed thanks to Sinopec for their concern about difficulties FREP was confronted with and their great support and help rendered to FREP for management and profit improvement. He hoped that shareholders at home and abroad would unite in a concerted effort, get alignment and jointly promote continuous improvement of management level and profit of the Joint Venture.

President Lu Dong said that in the face of severe market environment and formidable mission of turning losses into gains, FREP would follow concrete work requirements raised by Sinopec survey team, collate one by one and cascade down to every single department, business team and post, unify thinking, build confidence, stick fast to annual profit target and mobilize everyone to spare no efforts in promoting management and profit improvement.

It’s reported that FREP would make efforts around KFAs: one, further refine management, lay emphasis on control and accountability of operating level and make use of KEV, KMV and so forth to further improve economics; two, improve facility reliability and prevent unplanned shutdown. Provide a good platform for optimization and margin improvement; three, continue to accelerate energy efficiency improvement, in particular, pay attention to chemical energy efficiency improvement; four, seek opportunities of low value energy, including further outsourcing steam and using syngas as fuel; five, lower crude oil and product inventory to relieve cash flow.

In the company of OGM Liu Yanchang, etc., the survey team also had an expedition in the field site by bus. Heads from Process Department, Technical & Planning Department, etc. escorted the meeting.