Oct. 02. - Sinopec and ExxonMobil sign framework agreement to strengthen strategical alliance in China

Source Press Release
Company SinopecExxonMobil 
Tags Upstream Activities
Date October 21, 2002

China Petroleum and Chemical Corporation (Sinopec Corp.) and ExxonMobil China Petroleum & Petrochemical Company Limited, a subsidiary of  Exxon Mobil Corporation, signed a framework agreement that will strengthen the strategic alliance between the two companies and move forward their joint venture projects under development in Fujian and Guangdong Provinces.

This framework agreement follows the recent approval of the Joint Feasibility Study by the Chinese Government for the Fujian integrated petroleum and petrochemical joint venture between ExxonMobilSinopec, Fujian Province, and Saudi Aramco.

ExxonMobil and  Sinopec established a strategic alliance between the two companies in 2000. Under this alliance, progress has been made in their joint efforts to develop their cooperative projects in southern China's Fujian and Guangdong Provinces.

In Fujian, ExxonMobil has been working with  Saudi Aramco, Fujian Petrochemical Company Limited (FPCL), a joint venture between Sinopec and the Fujian provincial government, to develop an integrated world-scale refinery and petrochemical complex. It involves the expansion of an existing 80,000 barrels-per-day (4 million tons-per year) refinery to a 240,000 barrels-per-day (12 million tons-per-year) capacity and the construction of a new 800,000 tons-per-year ethylene steam cracker, with a potential total investment of over 3 billion US dollars. In addition, the parties are also working toward a fuels marketing joint venture that would operate about 600 service stations in Fujian. The marketing joint venture will market fuel products produced by the manufacturing joint venture.

In Guangdong, the two companies have been evaluating a joint venture that will invest in and expand an existing refinery and petrochemical facilities currently owned by Sinopec. The parties are also developing a fuels marketing joint venture that is expected to operate about 500 service stations within three years of joint venture formation.

Under the framework agreement, ExxonMobil and  Sinopec will accelerate and complete the relevant work of the projects according to defined work plans.

In addition, both parties expressed intent to explore new opportunities for broadening their cooperative efforts.

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