JV includes Sinopec and will produce approximately 300,000bpd
Total signed an agreement with two units of state-run Kuwait Petroleum Corporation (KPC) on Tuesday to take a stake in the Zhanjiang refinery and petrochemicals platform in China, the French oil giant said.
Total and the KPC units signed a memorandum of understanding to take part in the development of the 300,000 bpd refinery in partnership with Chinese refiner Sinopec, Total said.
It would be designed to process Kuwaiti crude as feedstock and produce high-quality refined and petrochemicals products, Total said, without giving an estimate of the investment involved in the deal.
"I truly believe that in the long-run this is a good combination where we have direct access to long-term reserves, 300,000 barrels per day, from Kuwait to go to the huge market which is continuing to grow," Total CEO Christophe de Margerie told reporters on the sidelines of an energy conference in Kuwait.
He said that Total and KPC still had to take the decision of whether to invest in the project, with the agreement of Chinese authorities. Under the plan, Sinopec would hold 50 percent, KPC would have 30 percent and Total 20 percent, he said.
Total had said last month it was in talks to develop a refinery in China with Kuwait, which wants to expand production and boost refining operations at home and abroad.
A great project with good opportunities for kuwait , china and total.