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Wed 16 Mar 2011 07:57 PM

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Kuwait, China sign agreements for $9bn project

Joint venture will see oil refinery and petrochemical plant being built in southern China

Kuwait, China sign agreements for $9bn project

Kuwait and China signed agreements on Wednesday for a $9bn deal to build an oil refinery and petrochemical plant in south China.

The implementation agreement between Kuwait Petroleum Corporation and China Petroleum and Chemical Corporation Limited (Sinopec) took place in Beijing, state news agency KUNA reported.

Earlier this month, China approved the $9 billion joint venture, which will be built in the southern coastal city of Zhanjiang.

Kuwait's ambassador to the People's Republic of China, Mohammad Saleh Al-Thuwaikh, stressed the importance of the project in boosting cooperation in the domain of oil between Kuwait and China, KUNA added.

Al-Thuwaikh also said that the project is of strategic importance to Kuwait, adding that it helped "market the Kuwaiti oil in one of the world largest oil consumer countries".

The project will secure Kuwait, the world's fourth-largest crude exporter, a solid outlet for its oil, ahead of competitors such as Venezuela, Russia and Qatar, all of which are planning refineries in China.

Kuwait aims to more than double its crude exports to China to 500,000 barrels per day (bpd), versus last year's sales at just under 200,000 bpd.

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