China's second-largest oil producer Sinopec says its first-half net profit rose 51 percent to 16 billion yuan (nearly US$2 billion), on increased domestic demand and higher oil prices.

The company produced 136 million barrels of oil and 100 billion cubic feet of natural gas in the first six months of this year.

Sinopec expects that the global demand for crude oil will continue to grow in the second half, with crude oil prices fluctuating at a relatively high level.

Because of a projected increase in demand for its products, it has raised its planned capital expenditure level in 2004 from 50 billion yuan to 56 billion yuan.

The money will be used to build natural gas and crude oil pipelines, to speed up renovation at some of its refining plants, and to construct and purchase petrol stations.

(CRI August 30, 2004)