Sinopec plans expenditure cut

In reaction to mounting oil prices, energy giant Sinopec will reduce expenses by 6.5% in 2005 to bring the year's total expenditure down to US$7.1 billion, the Standard of Hong Kong reported. Certain projects will be delayed, such as a refining project in Qingdao, Shandong province, believed to have a capacity of ten million tonnes a year. Sinopec lost more than $160 million during the first half of 2005 as oil prices rose. Prices have recently risen further with a US cut in output following Hurricane Katrina.