China Petroleum & Chemical Corp (Sinopec) intends to make its biggest investment ever later this year. The decision comes after it earned its biggest profit in decades, reiterating Beijing's call for energy companies to increase production.

Sinopec posted its highest profit in a decade in 2021 on the back of recovering energy demand and rising oil prices in the post-covid era, with net income reaching $11.19 billion.

It advances Reuters that Sinopec will invest $31.10 billion in 2022, up $18% from a year ago, beating the previous record of $28.43 billion set in 2013.

The Chinese firm will also invest $12.80 billion in upstream exploration, especially in the crude oil bases in the Shunbei and Tahe fields, and in natural gas fields in Sichuan province and the Inner Mongolia region.

A Sinopec memo cited by the portal predicts that "going forward in 2022, demand for refined oil will continue to recover, and demand for natural gas and petrochemicals will continue to grow."

It also warned of the potential impacts of geopolitical challenges and volatile oil prices on investment and operation in overseas businesses.

Sinopec Group has suspended talks for a large petrochemical project and a gas marketing venture in Russia, heeding a government call for caution as sanctions mount over the invasion of Ukraine.

It plans to produce 281.2 million barrels of crude oil and 12.567 billion cubic feet of natural gas in 2022, up from its production of 279.76 million barrels and 1.199 billion cubic feet in 2021.

Beijing seeks to ensure the country's energy security amid intensifying geopolitical risks. It wants to keep annual crude oil production at 200 million tons and increase natural gas production to more than 230 billion cubic meters (bcm) by 2025 from 205 bcm in 2021.

Sinopec's gross revenue and refined oil product production are expected to remain around the same level in 2022 as a year ago, at 258 million tons and 147 million tons, respectively.