31 January 2011 14:14 [Source: ICIS news]
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By Franco Capaldo
LONDON (ICIS)--INEOS has been offered $1bn (€740m) by PetroChina for a 50% share in its European refining operation, it said on Monday.
The business includes the refineries at Grangemouth in ?xml:namespace>
“This new partnership will secure investment and the long-term sustainability of both sites in a highly competitive market and ensure we continue to be
“This offer is an important step on the way to forming a strategic partnership with PetroChina,” said INEOS chairman Jim Ratcliffe.
Ratcliffe added that the JV would allow INEOS to remain fully committed to its refining business as well as present opportunities to further develop its interests in
Core to INEOS was an agreement signed with PetroChina’s ultimate parent company, China National Petroleum Corporation (CNPC) to share refining and petrochemical technology and expertise. The agreement gives INEOS the opportunity to lever its technology and expertise into the
In addition, the JV would aid PetroChina’s strategy of building a broader business platform in
The geographic location of the refineries are strategically important – Grangemouth provides utilities for essential
INEOS and PetroChina would now work towards forming the proposed JVs in the second quarter of 2011.
“We now intend to evaluate our future refinancing options for the group over the first half of 2011,” Ratcliffe said.
A new Swiss company would be incorporated to hold the INEOS investment, while the two JVs would be operated independently of the INEOS Group, it said.
INEOS Refining is
($1 = €0.74)
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