In 2023, CITIC Resources set up a Trading and Marketing Department to champion its “investment + trading” dual-driver development model. It completed formulating trading business systems and processes, approving trading counterparties, and setting trade financing limits. It also quickly completed KYC (Know Your Customer) with several crude oil traders and major oil companies and forayed into the oil and gas trading circle.
Business Features: At the beginning of the business, the Company launched a low-risk crude oil trading business. In the foreseeable future, with more trading performance gathered and efforts to improve its trade risk control system, it plans to directly obtain first-hand resources from crude oil producers and conduct proprietary physical position trading business.
Other Benefits: Based on local conditions, the Trading and Marketing Department works with various oilfield projects to enhance the sales price of attributable oil. It has also also expanded the sales channels for attributable oil from the Yuedong Oilfield, prompting current customers to increase crude oil prices. It foresaw the adverse impact of the high-sulfur oil pipeline in North America when completed and secured a three-year crude oil sales tender for the Seram Oilfield, locking in future revenue. It actively explored new sales channels and directions for crude oil from the KBM Oilfield to diversify and enhance the market value of attributable oil.