Perisson Signs Mou to Acquire a Significant Interest in a Refinery in Hebei, China

Source Press Release
Company Perisson Petroleum CorporationCNOOC Ltd 
Tags Corporate Deals, Deals, Refining & Marketing Activities, Refinery Project
Date June 04, 2018

Perisson Petroleum Corporation (“Perisson” or the “Company”) (TSXV: POG) is pleased to report that on May 31, 2018, it has signed a non-binding Memorandum of Understanding (“MOU”) with Hebei Xinquan Petrochemical Co., Ltd. (“Xinquan”).

The MOU confirms that Perisson and Xinquan desire to negotiate the terms of an investment by Perisson into Xinquan in exchange for a controlling interest in Xinquan. The targeted completion of the transaction is for early July and will be subject to due diligence, TSX Venture Exchange and regulatory approvals. A more detailed news release will be issued once a formal deal has been signed and terms are known.

Xinquan’s primary asset is a petrochemical refinery (the “Refinery”) and associated tank storage located 8 km inland from Bohai Bay approximately 80 km south of Tianjin, China.

Xinquan has a present production capacity of 2.8 million tonnes of lubricant base oil, aromatic hydrocarbons and asphalt. The refinery’s current product production capacity is: Asphalt - 1.5 million tonnes per year, coking - 0.9 million tonnes per year, hydrogenation unit - 0.3 million tonnes per year, desulfurization unit - 0.1 million tonnes per year, Hydrogen production unit – 5,000 M2/h, and a Sulfur unit – 5,000 tonnes per year. An expansion project at the Refinery is planned that will expand the production capacity by 2.1 million tonnes, including 3.5 million tonnes per year of Asphalt, a 1.1 million tonne hydrocracking unit, a 0.8 million tonne hydro-refining device, a 3,500M2/h Hydrogen production unit, and 20,000 tons per year Sulfur unit. This expansion is targeted for completion by the end of 2018 which is anticipated to result in an increase in production capacity to 5.6 million tonnes.

With the completion of this acquisition, the Xinquan Refinery will represent a key step in Perisson’s long term plan to become an integrated global oil and gas company. The Xinquan Refinery grows our corporate value chain and will enable additional opportunities at the Tianjin port.  

The Company continues to look for suitable oil and gas acquisitions including farm-in candidates as well as associated infrastructure in Canada and the United States to leverage the Company’s access to drilling capital, equipment and expertise.  

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd