On June 29th, 2017, Sinopec Oilfield Service Corporation (SSC) held the 2016 annual general meeting (AGM) in Beijing. The meeting deliberated and passed 9 proposals including the annual reports for 2016 board of directors, supervisors, financial audit, and fit the Party building into the articles of corporation. Jiao Fangzheng, who is Vice President of Sinopec Group and Chairman of SSC, gave a work report of the Board of Directors. And Huang Songwei who is a supervisor of SSC gave a work report of Supervision Committee.
In 2016, the international oil price slumped below 30 dollars per barrel and fluctuated at lower points, and the annual average oil prices hit the lowest points of 12 years. Oil companies had cut upstream E&P CAPEX continuously, which led to significantly reduced work volumes and lowered service rates. Confronted with harsh conditions, SSC focused on expanding market, reducing cost, improving project profitability and strengthening management and also SSC had driven innovation, deepened reform, adjusted structure, transformed and upgrade business modes to achieve the intensive growth. The Company went through the most difficult year and passed the most severe test, with progresses in various business areas.
Looking forward into 2017, the oil prices will bottom out with cutting production agreement signed by major oil production countries, and the number of active drilling rigs will keep on rise, the environment for company will get better. 2017 will be a critical year for the Company to deepen reforms, reduce losses and make innovation. The Company will focus on the following aspects: firstly, to boost profits through expanding the external markets with full steam when providing services to Sinopec E&P projects; secondly. To enhance efficiency through deepening reforms, streamlining organizations, optimizing crews, and integrating resources; thirdly, to reduce cost and tap potentials by pushing forward total cost management and strengthening the whole process cost control; fourthly, to promote quality and enhance efficiency by developing the technologies that satisfy the mark needs and by accelerating technology innovation.