OREANDA-NEWS. August 05, 2011. China Daily reported Shaanxi Yanchang Petroleum Co, China fourth biggest oil producer by output is planning to strengthen its petrochemical division and cut the weighting of its oil and gas unit in its total portfolio after its oil resources were squeezed by China top three oil companies.

Mr Zhang Jiyao general manager of the company which is based in the northwestern province of Shaanxi said Yangchang Petroleum will reduce the proportion of sales by its oil and gas division to 60% of the group total sales by the end of 2015 to CNY 120 billion. He said that meanwhile the company expects the petrochemical sector including its coal chemical division to account for 40% of the group's sales, equal to CNY 80 billion.

Mr Zhang said "We'll make full use of the abundant coal resources we have and find our own way for growth, adding that the company will use CNY 150 billion of its total CNY 260 billion corporate investment between 2011 and 2015 to develop projects that integrate coal, oil, gas and salt.

In addition, Mr Zhang said that the company is set to raise its annual refining capacity by 5.14% from 2010 to 13.5 million tonnes this year. He said it also plans to invest about CNY 14 billion to expand its network of gasoline stations by 700 within five years, bringing the total number to 1,000. Currently, most of its 300 existing stations are situated in the provinces of Shaanxi and Sichuan. He added "We're preparing to establish some in Shanxi province.”

Mr Zhang said "The planned stations will include some jointly established with Shell."

The sector accounted for approximately 80% during 2006-2010.