France's Total confirms interest in Kuwait-China JV China project

15 February 2012 16:16  [Source: ICIS news]

LONDON (ICIS)--Total is interested in investing in a Kuwait-China refinery and petrochemicals project in Zhanjiang, Guangdong province, southern China, the French oil and gas major said on Wednesday.

The project is currently a 50:50 joint venture between Sinopec and Kuwait Petroleum Corp (KPC) but KPC has been seeking a partner to share its 50% stake.

A Total spokesman said the project would be part of the group’s strategy to invest in growth markets such as Asia with Middle Eastern oil producers.

“Total does confirm to be in discussion with KPI (Kuwait Petroleum International) to join a refining and petrochemicals project in China,” he said. “This project is aligned with Total’s strategy of expanding in growth markets, especially Asia, in partnership with an oil producer from the Middle East.”

KPI is KPC’s international arm.

Meshari Al-Mahmoud, who is in charge of the China project at KPC, told ICIS last week that KPC was considering Total as a possible partner but was still finalising the selection.

Sinopec and KPC held a ground breaking ceremony for the yuan (CNY) 59bn ($9.4bn) project in November. It is expected to include a 15m tonne/year refinery, a 1m tonne/year cracker and downstream facilities for products such as polyethylene (PE), polypropylene (PP) and ethylene glycol (EG).

The refinery is scheduled to start up in 2013 and the cracker is expected to start up in 2015.

($1 = CNY6.30)

By: Anna Jagger
+44 20 8652 3214

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