Interview: Sinopec's legal counsel speaks out on global ambitions

As part of Sinopec's globalisation policy, we are listed on four stock exchanges and engage in international upstream and downstream operations and businesses in different countries and jurisdictions. Each country has its own unique set of laws and regulations. If Sinopec is unfamiliar with local legal requirements, we would leave ourselves exposed to potentially serious consequences. In order to avoid and minimise this exposure, we have been focusing our attention on researching laws from different countries. We have also published a series of guidelines to better manage overseas risk control.

What are the main future issues that are worth noting when it comes to energy, projects and infrastructure? From a legal perspective, what would be the major focus of your work based on these issues?

In order to build a world leading energy and chemical company, Sinopec will continue to implement sustainable development strategies in the future. These strategies include resources, market-orientation, integration, globalisation, differentiation and low-carbon development. Sinopec's legal management is developing international standard contracts, utilising information technology systems, implementing new rules and regulations and recruiting professionally qualified in-house staff in order to serve these strategies, especially the globalisation strategy.

What would you consider as the most important factors or qualities that you expect from outside counsel in terms of energy and projects?

First, a competent law firm is highly skilled in transactions, compliance and dealing with complicated litigation and arbitration related to the oil and gas industry. Second, it can provide timely, efficient and cost-effective legal services. Third, the lawyer must have very good communication skills.

What are some of the representative deals or projects you have completed in the past year?

During the past year, we have completed the following projects:

1. Issuance of an international bond worth US$3 billion

2. M&A: 30% interest in Galp's Brazilian unit for US$5.2 billion, acquisition of Daylight Energy in Canada for US$2.9 billion, a 25% stake in APLNG project in Australia and a US$ 2.5 billion deal with Devon Energy in the US.

3. Restructuring and reorganisation of the oil service sector

4. Restructuring and reorganisation of refinery engineering and construction sector

Are there any projects that were special or memorable to you?

The project that impressed me most was the successful issuance of an international bond worth US$3 billion. The bond was the first direct financing by Sinopec Group in the international bond market. Our in-house team participated in the whole process by providing professional legal services. Sinopec's senior management spoke highly of the contribution made by the legal department.