Shell pulls out of Chinese refinery plans

Warren R. True
Chief Technology Editor-LNG/Gas Processing

HOUSTON, Dec. 9 -- Royal Dutch Shell PLC reported last week it has withdrawn from talks with China Petroleum & Chemical Corp. (Sinopec) and Kuwait Petroleum Corp. that were to lead to construction of a $9 billion, 300,000-b/d refinery in China’s Guongdong province.

A Shell spokesperson told OGJ that, due to “strategic and commercial considerations, Shell has decided not to pursue the downstream opportunity currently in discussion between KPC and Sinopec.”

Regional media speculation agreed that the move opens the way for other international oil companies to join the joint venture. In its quoted comments, Sinopec made clear it would retain a 50% interest, leaving any other party to carve out a stake from KPC’s 50% interest.

Shell is seen as pulling away from new downstream ventures in favor of more oil and natural gas exploration and production.

A memorandum of understanding is in force between state-run KPC and Sinopec to build the refinery and petrochemical complex that will produce 1 million tonnes/year of ethylene. Kuwait is to supply all the oil for the project.

Chinese government approval for the project is expected in first-quarter 2010.

Contact Warren R. True at warrent@ogjonline.com.

Related Articles

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

Millennium Pipeline appoints president

03/20/2014 Millennium Pipeline Co. LLC has selected Joseph Shields as its president. He succeeds Rocco D’Alessandro, who held the position beginning in May 20...

ONGC Videsh names exploration director

03/19/2014 ONGC Videsh Ltd. (OVL), the overseas arm of Oil & Natural Gas Corp. Ltd., has named Anil Bhandari as exploration director. In his role, Bhandar...

Vermilion to buy southeast Saskatchewan assets

03/18/2014 Vermilion Energy Inc., Calgary, has signed an agreement with a private southeast Saskatchewan producer to acquire light oil producing assets in the...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected