July 27, 1998, the fifth day of June (Tiger years), China Petroleum and Petrochemical Group Company was established in Beijing.

according to the Ninth National People's Congress meeting examined and approved by the State Council reform plan "on the issues related to the China National Petroleum Corporation (CNPC) and China Petroleum & Chemical Corporation, the State Council approved the spirit of active preparation, after six months, the China National Petroleum Group Corporation and China Petroleum & Chemical Corporation was officially inaugurated. July 27, 1998, the two groups held the inaugural meeting at the Great Hall of the People. Wu Bangguo, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, attended the meeting and delivered an important speech.
Wu Bangguo at the meeting on behalf of the State Council on the establishment of the two groups expressed warm congratulations and condolences to the two groups of cadres and workers. He said the CPC Central Committee and the State Council attach great importance to the formation of the two group companies, as an important part of this institutional reform of the State Council. In preparation for the two groups and the formation process of the State Council held a meeting to study discussions, made a series of important instructions, of Zhu (�� capacity), Premier Zhu Rongji personally determine the guidelines and requirements of established principles. The formation of the two groups, both for the implementation of the program of institutional reform of the State Council to accelerate the reform and development of petroleum and petrochemical industries, or for the achievement of this year's economic development goals, has a very important significance.
Wu pointed out that since 1998, due to the impact of the Asian financial crisis, the international oil prices fell sharply, the impact of excessive imports and smuggling, production and operation of petroleum and petrochemical industries facing great difficulties. More than 3700 wells in the first quarter to close the discontinued from January to May of petroleum and petrochemical industry losses for the first time. But with the expansion of domestic demand, the intensity increased, in particular the implementation of the proactive fiscal policy, will further enhance the productive role in boosting; reduce bank interest rates to increase loans, raising the export tax rebate rate to crack down on smuggling, will further ease the difficulties; while production and sales integration, integration of domestic and foreign trade, and to create the institutional conditions for enterprises to improve their effectiveness. Petroleum and petrochemical industries in both output value and profits and taxes, have played a pivotal role in the industrial economy. The majority of petroleum and petrochemical fronts workers must be the basis for profit of 540 million yuan in June, and vigorously regulate the refined oil market, to crack down on smuggling, to ensure domestic wells ability to open enough, good refinery and marketing of convergence, strengthening enterprise management, force preservation The annual profit of not less than $ 10 billion. [? V history today?? Com]
It is understood that the newly established China National Petroleum Corporation is the national petroleum and petrochemical enterprises established on the basis of the former China National Petroleum Corporation, its member institutions include: the former China 12 oil and gas enterprises directly under the Petroleum and Natural Gas Corporation, China Petroleum & Chemical Corporation, assigned to the 14 original oil refining chemical companies and five sales companies, transferred from place to place in 12 provinces, autonomous regions and municipalities directly under the Central Government, and a plan cities with independent The oil companies and their subordinates at all levels of the oil companies and gas stations, Jilin Petroleum Group Co., Ltd., Jilin Chemical Group Corporation, and directly under the China National Petroleum Corporation's other enterprises. China National Petroleum Corporation (CNPC) is focused on the business of oil and natural gas exploration, development business, while operating in the petrochemical business.
newly established China Petroleum & Chemical Corporation is the national petroleum and petrochemical enterprises established on the basis of the former China Petrochemical Corporation, its member institutions include: the former China Petrochemical Corporation the immediate and holding the 22 refining and chemical enterprises from the former China National Petroleum Corporation, assigned to the 12 oil and gas enterprises, Donglian Petrochemical Group Co., Ltd. 5 production enterprises and an oil company, transferred from place to place in 18 provinces, autonomous regions and municipalities directly under the Central Government and 4 a city plans to separate the oil companies and their subordinates at all levels of the oil companies and gas stations, as well as directly under the China Petroleum & Chemical Corporation's other enterprises. After the establishment of the China Petrochemical Corporation, China Eastern United Petrochemical Group and China Eastern United Petrochemical Group Co., Ltd. will be canceled in accordance with the law. China Petrochemical Corporation focused operating petrochemical business, while operating oil and natural gas exploration and development business.
two groups by the State Economic and Trade Commission, is responsible for the contact. Granted by the State, the two groups of crude oil, refined oil foreign trade rights, state-authorized investment institution and the pilot of the national holding company approve the two groups, two group companies, respectively, as determined by the State Council as a whole included in the list of pilot enterprises.