New | China’s Sinopec Oilfield seeks growth in overseas and gas drilling to offset oil work plunge

Sinopec Oilfield Service, whose biggest customer is China’s second largest oil and gas producer Sinopec - has turned its focus to the overseas market and domestic natural gas projects for growth, as low oil prices cut domestic oil drilling work volumes and saw it post a loss last year.

The drilling and construction services arm of state-owned China Petrochemical - parent of listed Sinopec - is aiming for overseas business to contribute up to 35 per cent of its revenues by 2020, up from 23 per cent last year.

“The overseas market has the best market potential for us, and its development is one of our key strategies going forward,” chairman Jiao Fangzheng told reporters on Thursday, adding the Middle East, Africa, South America and Central Asia and Russia are its key targets.

It has obtained big orders from Saudi Arabia and Kuwait, and is eyeing work in Iraq and Iran.

The firm reported late on Wednesday a net loss of 11.54 million yuan (HK$13.8 million) for last year, compared to a profit of 1.26 billion yuan in 2014.

Revenue tumbled 23.6 per cent to 60.35 billion yuan on the back of lower service rates, while work volumes fell 25 to 40 per cent across its drilling, geological data collection, well preparations and facilities construction operations.