Sinopec Shuts Oil Wells in Southern China on Floods, Says Impact `Limited'

China Petroleum & Chemical Corp., the nation’s second-largest oil producer, said it shut some oil wells in southern China because of flooding.

The impact on the company’s oilfields is “limited” so far, Huang Wensheng, spokesman of the company known as Sinopec, said by telephone today, declining to specify the number of wells that were closed.

Increased rainfall since July 1 has affected about 38 million people and forced the relocation of 1.3 million in 11 Chinese provinces, the Ministry of Civil Affairs said July 16. Sinopec’s parent China Petrochemical Corp. said yesterday that more than 100 of its unit’s oil wells in Jiangsu province have been inundated by floodwaters in central China.

Shengli field in Shandong province, the company’s largest, is largely unaffected, Huang said. The company has taken precautionary measures to cope with the bad weather, he said, without elaborating.

PetroChina Co. hasn’t seen any “noticeable” impact from floods and typhoons on its oilfields and refineries, Mao Zefeng, spokesman of the nation’s largest oil producer, said by telephone. The company’s fields and refineries are operating normally, according to Mao.

Typhoon Chanthu made landfall today near Zhanjiang city in the southeastern province of Guangdong, after sweeping across the South China Sea in a northwesterly direction, according to a map posted on the website of the Hong Kong Observatory at 2 p.m. local time.

Jiang Yongzhi, a spokesman for Cnooc Ltd., which has exploration and production operations in the South China Sea, declined to comment on whether any of the company’s facilities have been affected by the typhoon.

“Typhoons are a common phenomenon that we have to deal with,” he said. “We have a comprehensive system to deal with the impact of typhoons.”

Cnooc rose 0.2 percent to close at HK$12.86 in Hong Kong trading today compared with the 0.5 percent gain in the benchmark Hang Seng index. PetroChina climbed 0.8 percent and Sinopec increased 0.3 percent.

--Winnie Zhu in Shanghai and Chua Baizhen in Beijing. Editors: Jane Lee, Ryan Woo.

To contact the reporter on this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net

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