Wanted: Oil traders who know China, with good heads for liquor

Fri Jun 10, 2016 6:28am EDT
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By Chen Aizhu and Florence Tan

BEIJING/SINGAPORE (Reuters) - Chinese independent oil companies are luring traders, marketers and risk managers away from dominant state behemoths, offering better pay and perks in a hiring spree triggered by the freeing up of China's crude import trade.

Global oil firms and commodity houses have also been raiding state giants such as Sinochem and CNPC for staff to help handle up to $50 million a day in new crude flowing into China this year, and the cherry-picking of talent is likely just getting started.

China's independent "teapot" refiners, so called due to their small size, could be processing by the end of this year as much as a fifth of the crude imports of the world's No.2 oil consumer. Already, in the first five months of 2016 - the first full year of a dozen of them being granted crude import licences - they have captured about 10 percent of the inbound shipments.

Shandong Dongming Petrochemical Group, China's largest independent refiner, has built a Singapore-based trading team of 11 to handle this new business, including trading and shipping managers hired from CNPC Fuel Oil Company and the CNOOC group.

"A team of this size is far from enough for our scale of 10 million tonnes a year (200,000 bpd) crude demand," said Zhang Liu Cheng, vice president of Shandong Dongming.

"We'll need more to cover products, chemicals and market analysis," Zhang said.

Awarding crude import quotas of up to 1.2 million barrels per day (bpd) to China's teapots has started a tussle for talent as the refiners - and the oil majors and trading houses that aim to supply them - dive into an activity previously restricted to state-owned enterprises (SOEs).

This year, use of the quotas has made up most of a 16 percent or around 1 million bpd rise in China's crude imports, even with several underused and more awaiting approval.   Continued...

A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. REUTERS/Stringer/File Photo