(EnergyAsia, March 21 2012, Wednesday) — France’s Total and two subsidiaries of Kuwait Petroleum Corp said they have signed a Memorandum of Understanding (MOU) to develop an integrated oil refining-petrochemicals complex in Zhanjiang, China’s southern-most major city in Guangdong province with Chinese major Sinopec.
Through its subsidiaries, Kuwait Petroleum International (KPI) and Petrochemicals Industries Company (PIC), KPC will supply crude feedstock and participate in developing a 300,000 b/d full-conversion refinery integrated with petrochemicals and marketing.
KPI handles international refining and marketing while PIC oversees KPC’s petrochemicals activities.
KPI, PIC and Total have agreed to form a consortium, which will potentially hold interests in two joint-ventures together with Sinopec. The MOU sets forth the agreement among KPI, PIC and Total regarding the development of the project.
Farouk Al Zanki, KPC’s CEO, said:
“Total, with its long experience in the downstream business in China coupled with know how in Refining and Petrochemicals operations, will add value to the China project. Moreover Total and KPC’s strategic objectives in Guangdong are highly aligned.”
Christophe de Margerie, Total chairman and CEO, said:
“Total is pleased to have been selected by Kuwait Petroleum Corporation as its preferred partner to participate in the project of a top-performing refining and petrochemicals platform with Sinopec in China. This agreement will be the keystone of a long-term relationship with KPC.