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The Premier of China and France Witnessing the Signing Ceremony of Sinochem and Total

Date:2005-12-20 Source:Sinochem Group
On Dec.5th, China and France signed 16 cooperation documents regarding finance, railway, aviation and aerospace, energy and education. In the scope of energy, Li Hui, vice president of Sinochem signed "The Joint Venture Contract to establish Sinochem-Total Oil Product Company" with his French counterpart. Wen Jiabao, the Prime Minister of China and Dominique de Villepin, French Prime Minister attended the signing ceremony.

TOTAL is the world's NO.4 Oil Company and plays the leading role in Petroleum E&P, refinery, distribution and chemical. The signing the Contract will elevate the partnership between Sinochem and Total into a new height.

Sinochem and Total started cooperation with West Pacific Oil Refinery (WEPEC) when both the two companies are the big shareholders of the company. As the relationship between China and France heats up, On Oct.9th, 2004, Thierry Desmarest, CEO of Total visited Sinochem and the two companies signed the contract to establish Sinochem Total Fuel Company. The joint venture is committed to establish the oil retail network circling the Bohai Ring. On May 23rd, 2005, the Company officially inaugurated.

Then Sinochem and Total decided to expand their reach to Yangzi River Delta and established Sinochem Total Oil Product Company. On Dec.2nd, 2005, The Company's establishment was approved by Mofcom. In this new joint venture, Sinochem holds 51% share while Total has 49%. In the next 6 years, the company will build up more than 100 gas retail stations in Jiangsu, Zhejiang and Shanghai. It will also expand its network by attracting 200 retail stations in the same region via Franchise when the policy ban would be lifted in 2007. After 2012, the company will sell more than 1 million ton of oil product through its own network.