Sinochem Once More Joins Hands with TOTAL to Build Oil Products Distribution Network in East China
|On September 29, Sinochem and TOTAL signed an agreement in Beijing on the establishment of a joint venture TOTAL-Sinochem Oil Company Limited to jointly build the oil products distribution network in east China. Sinochem's President Liu Deshu and TOTAL's President & CEO Desmarest attended the signing ceremony. Last year both sides signed the agreement on investing RMB800 million to build the oil products distribution network in north China. |
According to the new agreement, the joint venture has about US$100 million of which Sinochem holds 51% while TOTAL holds 49%.
At the ceremony Sinochem noted that currently the Chinese economy is maintaining the momentum of healthy and rapid growth. The Yangtze River Delta region is one of the most economically developed regions of China with a great demand for oil products and boasting big market potential. The cooperation between Sinochem and TOTAL will make full use of their respective advantages of resources, brand and management so as to reach the prescribed objective.
As early as a dozen of years ago Sinochem and TOTAL has started cooperation in building the first Chinese foreign joint venture refinery WEPEC. In October 2005, Sinochem and TOTAL signed the agreement on the establishment of TOTAL Sinochem Fuel Company Limited to build gas stations in Beijing, Tianjin, Hebei and Liaoning. This new move will extend the coverage of their oil products distribution network.