Case Study: Sinopec Engineering Group achieves robust risk quantification for US$100M+ projects with Palisade's @RISK

Petroleum and Petrochemical Leader Sinopec uses @RISK to Evaluate Projects Valued over US$100million

Sinopec Engineering Group in Beijing faced the challenge of evaluating and quantifying risk for very large petroleum and petrochemical projects—often above US$100 million and sometimes up to US$10 billion—with long multi‑year construction schedules and many unpredictable variables that affect bidding, investment and merger decisions. To address this, the company adopted Palisade’s @RISK software to support probabilistic risk analysis across its major projects.

Using Palisade’s @RISK, Sinopec models key uncertainties with probability distributions, runs Monte Carlo simulations to calculate future risk reserves and the likelihood of cost overruns, and pressure‑tests scenarios to inform bid and investment choices. The analysis shifted risk priorities (for example showing contract risk can exceed oil‑price risk), improved decision making and monitoring of critical variables, and has made @RISK a standard tool for Sinopec’s >US$100M projects.

Sinopec Engineering Group

Jin Feng

Project Risk Manager