PetroChina Company Limited (PetroChina) and INEOS Group Holdings plc (INEOS) announce that on 10 January 2011, PetroChina International Company Limited, a wholly-owned subsidiary of PetroChina, has entered into a framework agreement with INEOS European Holdings Limited and INEOS Investments International Limited, each a wholly-owned subsidiary of INEOS.
The Framework Agreement sets out the main principles pursuant to which the parties will work towards forming joint ventures related to trading and refining activities at the Grangemouth refinery in Scotland and the Lavéra refinery in France.
All companies will work towards the formation of the proposed joint ventures by the end of June 2011.
PetroChina’s ultimate parent company, China National Petroleum Corporation (“CNPC”) and INEOS, are today also signing a strategic co-operation agreement to share refining and petrochemical technology and expertise between their respective businesses.
The signing of these agreements is to be witnessed by Li Ke Qiang, the Chinese Vice Premier, and Nick Clegg, the British Deputy Prime Minister.
If the deals are completed successfully, they will be of great importance for PetroChina’s global allocation of resources and market portfolio, exploring the high-end European market, as well as establishing PetroChina’s European oil and gas operation centre. They will improve the long-term sustainability of the INEOS refineries, enhance security of supply for customers and secure jobs and skills in both the UK and France. After the completion, both sites will remain integrated into INEOS’s downstream petrochemical production.
Senior managenement of both PetroChina and INEOS show support and appreciation for the deals, and believe that these deals are the start of a long-term relationship between PetroChina, one of the world’s largest integrated oil company, and INEOS, one of the world’s largest petrochemical companies. The deals are consistent with PetroChina’s strategy of building a broader business platform in Europe and of becoming a leading international energy company, and also present a clear opportunity for INEOS to progress its aim of growing and strengthening its business.
The Grangemouth refinery is located on the Firth of Forth with direct access to crude oil and gas from the North Sea. The Grangemouth refinery processes around 210,000 barrels of crude oil per day and provides fuel to Scotland, Northern England and Northern Ireland.
The Lavéra refinery processes 210,000 barrels of crude oil per day. It is located on the coast of the Mediterranean crude oil trading basin, next to the port of Marseille and adjacent to a crude oil terminal. The refinery supplies fuel by pipelines into France, Switzerland and Southern Germany.
Both sites are integrated into INEOS’s downstream petrochemical production and remain strategic to its long-term business.
Subsequent to the signing of the the framework agreement which defines the principles under which PetroChina International and INEOS will work towards forming the joint ventures related to refining and trading, there will be a period of consultation prior to signing a binding agreement, subject to the approval of related regulatory bodies.
ENDS
B-Roll of Grangemouth is available from Mediazoo contacts below. Photography of Grangemouth and Lavera can be found at ineos.com
Additional information on PetroChina is available at the Company’s website: http://www.petrochina.com.cn
Issued by PetroChina Company Limited
For further information, please contact:
PetroChina Company Limited
Senior Assistant Secretary to the Board
Mao Zefeng
Fax: (010) 6209 9558
Tel: (010) 5998 6262
E-mail: maozf@petrochina.com.cn
General Administration Department (original PR Department):
Yuan Xinxiang
Fax: (8610) 6209 9558
Tel: (8610) 5998 6037
E-mail: yuanxx@petrochina.com.cn
INEOS:
Richard Longden:
Tel: +44 (0) 7710 371998
E-mail: richard.longden@ineos.com
Mark Killick:
Tel: +44 (0) 7836 634449
E-mail: mark@mediazoo.tv
Feisal Ali
Tel: +44 (0) 207384 6980 0785 595885
E-mail feisal@mediazoo.tv
Helen Morris
Tel: +44 (0) 207384 6980 0791 7646585
E-mail helen@mediazoo.tv
PR Agency:
Hill & Knowlton Asia Limited
Shirley Lo
Fax: (852) 2576 3551
Tel: (852) 2894 6214
E-mail: shirley.lo@hillandknowlton.com.hk
PR Agency:
EverBloom Investment Consulting Lt. Co.
Shen Di
Fax: (8610) 5977 6211
Tel: (8610) 5166 3828
E-mail: di.shen@everbloom.com.cn
PR Agency:
Financial Dynamics
Ed Bridges / Ben Brewerton / Billy Clegg
Tel: +44 (0) 207 831 3113
E-mail: petrochina@fd.com
Note to editors
PetroChina Company Limited (http://www.petrochina.com.cn) is the largest oil and gas producer and distributor, in China. It is one of the largest companies in China by revenue, and one of the largest oil companies in the world. PetroChina was established as a joint stock company with limited liabilities by China National Petroleum Corporation on November 5th, 1999. With its headquarters in Beijing, PetroChina is China's biggest oil producer and as of September 2010 is the world’s largest company by market value. Traded in Hong Kong and New York, the mainland enterprise announced its plans to issue stock in Shanghai in November 2007 and following its debut on the Shanghai index its market value has tripled, making PetroChina the first company to reach a trillion dollar market capitalization. The company employs around 540,000 people and has a turnover of around $157billion.
INEOS (http://www.ineos.com) is the world's third largest chemicals group and a leading manufacturer of petrochemicals, speciality chemicals and oil products. As of the end of 2010 it operates 15 businesses and with a production network spanning 61 manufacturing facilities in 13 countries, the group produces more than 40 million tonnes of petrochemicals and 20 million tonnes per annum of crude oil refined products (fuels) each year. INEOS employs 15,000 people and annual sales of around $40bn.
INEOS Refining (http://ineosrefining.com) is Europe's leading independent crude oil refiner. With two particularly advantaged refineries, it processes more than 410,000 barrels of crude oil per day, to produce in the region of 20 million tonnes of fuels per annum. Our refineries are strategically located at Grangemouth Scotland and Lavéra France and are both fully integrated with co-sited petrochemical assets of the Company. Close proximity to feedstocks and our customers are key elements of our strength. INEOS Refining employs around 1000 people and has a turnover of around $15bn.