Total signed a Memorandum of Understanding (MoU) with Kuwait Petroleum International (KPI) and Petrochemicals Industries Company (PIC) to take a stake in the Zhanjiang refinery project in China.
Both companies are wholly owned subsidiaries of Kuwait Petroleum Corporation (KPC).
Sinopec partnership
Total and the KPC units have agreed to form a consortium which will potentially hold interests in two joint-ventures with Chinese refiner, Sinopec.
The MoU revolved around participating in the development of the 300,000 bpd full-conversion refinery integrated with petrochemicals and marketing, in partnership with Sinopec, Total said in a statement.
Processing Kuwaiti crude
The proposed refining and petrochemicals platform will be designed to process Kuwaiti crude as feedstock and to produce high-quality refined and petrochemicals products.
"KPC is pleased to expand its cooperation with Total," declared Mr Farouk Al Zanki, KPC Chief Executive Officer, after the signing of the MoU.
Objectives highly aligned
"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," he adds.
Keystone of a relationship
"This agreement will be the keystone of a long-term relationship with KPC," stated Christophe de Margerie, Total Chairman and Chief Executive Officer.
"The project is in line with our strategy of expanding in growth markets, based on a few highly competitive and integrated platforms," he added.
