Sinochem and PTT signed an MOU on the establishment of strategic partnership in Bangkok, Thailand, October 18, 2003. President Hu Jintao and the Thai Prime Minister Thaksin Shinawatra participated in the signing ceremony. Mr. Liu Deshu, president of Sinochem and Mr. PRASERT, president of PTT signed the MOU according to which Sinochem and PTT will conduct strategic cooperation in the development of oil and natural gas, sales of petrochemicals, power plant project, oil pipeline project and refineries.
PTT is the largest oil and natural gas group in Thailand and went public in 2001. Its predecessor is Thai Oil Bureau whose 60% of equity are held by the Thai government. PTT owns the majority of Thai oil and natural gas resources, 2600 km of natural gas pipeline, shares of four major Thai refineries and the largest oil station network in Thailand. Its sales of oil products have the largest market share in Thailand over 10 years.
As one of the four major Chinese oil companies, Sinochem plays an important part in the state oil security strategy. In response to the government’s strategy of “exploring international market”, Sinochem has successfully acquired ATLANTIS Oil Company, which marked the beginning of developing overseas oil field. Its strategic cooperation with PTT is another major step towards exploring overseas oil market.
The Thai petrochemical industry enjoys strong competitiveness in Southeast Asia. Many countries in this region including China imports LNG, fuel oil and jet kerosene mainly from Thailand. The cooperation between Sinochem and PTT is of great significance to China’s national oil security and also in the interest of Thailand.
The State-owned Asset Supervision and Administration Commission, the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Foreign Affairs, the Chinese embassy in Thailand and the Thai Ministry of Energy, the Thai Ministry of Foreign Affairs and the Thai Trade Representative have contributed to the signing of the MOU.