Sinopec Group, the largest shareholder of Sinopec Corp., is a giant petroleum and petrochemical group incorporated by the State in 1998 based on the former China Petrochemical Corporation. Funded by the State, it is a State authorized investment arm and State-owned controlling company.

Friday, May 21, 2010

French oil major Total in talks with Sinochem, Sinopec on oil and gas cooperation

Beijing, May 20th, 2010 - French oil giant Total said Tuesday that the company is in talks with Sinochem Group on cooperation of jointly-funded oil service station at some major Chinese cities such as Beijing and Shanghai, foreign media reported.

Dow Jones Newswire quoted Jean Jacques Mosconi, Total's senior vice president, as saying that the company also held talks with China Petroleum and Chemical Corporation (Sinopec) on business opportunities over refinery joint venture in China.

Mosconi made the disclosure in the Global Refining Summit held in Dutch city Rotterdam on Tuesday, saying that the potential oil refining JV might feed on crude oil from the Middle East.
He said the Chinese oil market is large and fast-growing, but the attractiveness might be hurt by the country's strict government control over product oil pricing system.

China has adopted a more market-oriented product oil pricing mechanism since November 2009. But the oil companies still could not adjust the retail product oil price without government approval.

Sinopec, China's largest oil refiner, produced 113.68 million metric tonnes of product oil in 2009, up 5.9 percent year on year. Its total crude oil throughput stood at 182.62 million tonnes in 2009, up 6.7 percent over a year earlier.

Sinochem is one of China's largest chemical players and also a state-owned oil importer. In recent years, the company has also set foot on the oil and gas industry, both in upstream and downstream sector. - Xinhua News Agency

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