Sinopec Releases Sustainability Report in Saudi Arabia

China Petroleum and Chemical Corporation (Sinopec) officially released “Sinopec in Saudi Arabia: Sustainability Report on Serving the Construction of the Belt and Road” in Daman, Saudi Arabia. The report outlines how Sinopec is fulfilling its economical, safety, environmental, and social responsibilities in Saudi Arabia. It is the first sustainability report issued by a Chinese company in Saudi Arabia.

Sinopec has been operating in Saudi Arabia for 19 years. Abiding by the principle of “mutual benefits and win/win cooperation,” the company says it has been committed to strengthening its operations and management to meet the highest global standards on safety, health, environmental protection, and the protection of employee interests.

“As the first sustainability report that is issued by a Chinese company in Saudi Arabia, the report not only introduces what we’ve done in the past, but it also promises what we are going to deliver in the future,” said Sinopec spokesman Lv Dapeng. “In a bid to support the realization of the United Nations’ Sustainable Development Goals and Saudi Vision 2030, Sinopec will continue to contribute to the social and economic development of Saudi Arabia and the happiness of the country’s people.”

Collaborating for Mutually Beneficial Industry Development

Sinopec has carried out extensive and in-depth collaborations with local enterprises in Saudi Arabia, supporting the social and economic development of China and Saudi Arabia. The joint venture of Sinopec and Saudi Aramco, Yanbu Aramco Sinopec Refining Company (YASREF) is one of the largest refineries in the world and one of the largest investments by China in the gulf area, with a total investment of $8.6 billion and an annual processing capacity of 20 million tons of crude oil. In January 2016, President of China Xi Jinping and King of Saudi Arabia Salman bin Abdulaziz Al Saud witnessed the inauguration of YASREF. The successful operation of YASREF supports the transformation and upgrading of Saudi Arabia’s economy and has established the project as the flagship program on Sino-Saudi collaborations in the energy sector.

Deepening Sino-Saudi cooperation has enabled Sinopec to shift its investment focus in Saudi Arabia from collaborations in resource and capital to collaborations in innovation and research and development, supporting the economic and social development of the two countries. In January 2016, Sinopec established a research and development center, Sinopec Tech Middle East, at Dhahran Techno Valley in Saudi Arabia. The center focuses on fundamental, forward-looking, and applied technology researches. It aims to boost the development of the petroleum and petrochemical industry in Saudi Arabia and bring the Sino-Saudi cooperation to an even higher level.

Safety and Compliance

Sinopec says it is committed to ensuring the highest standard of production safety and operation management. The drilling teams of Sinopec Oilfield Service Corporate has operated safely for Saudi Aramco for more than 12 years.

In alignment to its principles around business ethics and standardized operations, Sinopec says it is committed to cooperate with suppliers and subcontractors to build and maintain a responsible and healthy industrial ecosystem.

Impact Minimization and Environmental Protection

With a strict environmental management system in place, Sinopec says it strives to achieve development that is green, circular, and low-carbon in Saudi Arabia and minimize the effects of its operations in the country. In an effort to reduce the environmental effects of its operations, Sinopec assesses its major projects on biodiversity to mitigate or eliminate the projects’ environmental effect.

Employee Development and Respect for Diversity

Sinopec established the Sinopec Saudi Arabia Training Center in 2008, and, as of the end of 2018, has provided more than 1,000 rounds of training that garnered attendance of greater than 37,000 by its Saudi Arabian employees. It also held nine rounds of training for more than 170 staff members in key posts to help them gain and develop their global perspectives.

In addition, Sinopec says it is committed to creating a fair and harmonious working environment for its employees. In 2018, the company provided more than 3,000 of its employees with mental health consultation services.

Community and Local Engagement

Sinopec has undertaken two water-conservancy projects in Saudi Arabia, one of which is a water purification and transmission project of the Ministry of Environment, Water, and Agriculture (MEWA) of Saudi Arabia. That project, completed by Sinopec in 2018, is the largest water recycling and reuse project of MEWA to date and has played a crucial role in supporting the development of the Al-Ahsa Oasis region. Sinopec was also contracted by Saudi Arabia’s Saline Water Conversion Corp to support the construction of the Yanbu-Madina Phase-3 Water Transmission System Project, which has the capacity to provide 550,000 m3 of water per day.

“Going forward, following the 10 principles outlined by the United Nations Global Compact, Sinopec will continue to support sustainable development,” said Dai Houliang, president of Sinopec. “We strive to provide more employment opportunities and continue local procurements to support the development of local communities and businesses. We value the culture, traditions, and legacies here and will continuously to engage our employees to give back to the society.”

Find the report here (PDF).



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