China Petroleum and Chemical Corporation and Accenture Signed Letter of Intent for Long-Term Cooperation
Hongkong; New York, NY, October 30, 2000 --- Recently, China Petroleum and Chemical Corporation ("Sinopec") and Accenture signed a letter of intent whereby Accenture will provide services to Sinopec in the next 5 years. Sinopec is one of the largest Chinese enterprises, with vertically integrated businesses in oil and gas exploration and production, refining and petrochemical production, and refined product sales and marketing. To further strengthen the company’s competitiveness both in the China and international markets, particularly with the intensified competition expected as result of China accession into the World Trade Organization, Sinopec has determined and committed to transform its business and organization to become a leading commercial organization.
Accenture is a leading global management and technology consulting organization whose mission is to help its clients create their future. During the past 12 months, the firm has been engaged by Sinopec to assist in its restructuring and transformation in the following major areas: identifying business improvement opportunities and formulating business strategy; designing organizations that support Sinopec’s business strategy and its transformation; designing and implementing the financial and performance reporting architecture; designing and implementing an interim financial reporting solution; and planning for a company- wide common enterprise resource planning (ERP) system.
Sinopec has recognized the value that Accenture has been able to add to the company’s restructuring and transformation. Accenture also understands the strategic importance of having Sinopec as its client. Both sides have been satisfied with the relationship and cooperation between the two firms.
Sinopec has determined to improve after its overseas IPO so as to become a competitive oil and petrochemical corporation in international markets. Sinopec believes that further cooperation with Accenture in the next few years will smoothen this process. Accenture also wishes to further strengthen its relationship and help Sinopec improve its business operations and materialize the benefits intended through the restructuring and transformation.
Over the next five years, Sinopec will continue this cooperative relationship with Accenture, and Accenture will seek to leverage its access to its global resources to help Sinopec in the following major areas:
- Sinopec and Accenture will work together to prioritize and implement the business improvement initiative identified in Sinopec’s business plan for realizing the future business performance benefits indicated by the prospectus;
- Sinopec and Accenture will work together to continue the detailed design and implementation of the organization strategy and the key management processes for supporting Sinopec’s centralized management and SBU structure;
- Sinopec and Accenture will work together to continue the establishment of the financial reporting and performance management system in Sinopec and implement a company wide ERP system that will facilitate its new business model and organization structure;
- Given the emerging new economy era, Sinopec and Accenture will work together to position Sinopec for transitioning from a player in the traditional oil and petrochemical industry to a company with the capabilities to further improve itself and grow.
- Both Sinopec and Accenture also agree to work together to identify, agree on and actively pursue other new business opportunities as they emerge.
The strategic partnership between Sinopec, one of the largest Chinese enterprises, and Accenture, the world’s largest management and information technology consulting firm, is a significant milestone in the expectation of reform and commercialization of state-owned enterprises. Both Sinopec and Accenture have recognized such important relationship and will continue to make this new relationship successful.
Sinopec is an integrated petroleum and petrochemical company with upstream, midstream and downstream operations, and, based on total operating revenues from its continuing operations of RMB 213 billion (US$ 25.7 billion) in 1999. Sinopec is the largest petroleum and petrochemical company in China and one of the largest in Asia.
Darienne L. Dennis
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