Total joins Zhanjiang refinery and petrochemicals project
Total has signed a memorandum of understanding (MOU) with Kuwait Petroleum (KPC) to participate in the China-based Zhanjiang project.
KPC's subsidiary Kuwait Petroleum International (KPI) and Sinopec signed an agreement in 2010 to build a $9bn refinery complex.
Under the agreement, Sinopec will hold 50% of the stake, KPC will hold 30%, while Total will take the remainder.
As part of the MOU, Total and the KPC's units including KPI and Petrochemicals Industries (PIC) will develop a 300,000 barrel per day of full-conversion refinery integrated with a petrochemicals complex, in partnership with China's Sinopec.
The complex to be built in China's southern Guangdong province, will process Kuwaiti crude oil as feedstock to produce refined and petrochemicals products.
KPC chief executive officer Farouk Al Zanki 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."
Total chairman and chief executive officer Christophe de Margerie said the project is in line with the company's strategy of expanding in growth markets, based on a few competitive and integrated platforms.
Image: Total head quarters in la Defense near Paris, France. Photo: Tangopaso