Kuwait Petroleum Corp and France’s Total on Tuesday signed a memorandum of understanding to be partners in a Kuwait-China oil refinery joint venture, the French energy giant said.
The joint venture, in partnership with China’s Sinopec, will develop a refinery with a processing capacity of 300,000 barrels per day, in addition to a petrochemical complex, Total said in a statement on the sidelines of the International Energy Forum in Kuwait.
The complex to be built in Zhanjiang, in China’s southern Guangdong province, will process Kuwaiti crude oil.
Kuwait Petroleum International (KPI), KPC’s international arm, and China’s state-owned Sinopec signed an agreement more than two years ago to build the $9 billion (6.9 billion euro) complex.
“This agreement will be the keystone of a long-term relationship with KPC,” Total chief executive officer Christophe de Margerie said in the statement.
“The project is in line with our strategy of expanding in growth markets, based on a few highly competitive and integrated platforms,” he said.
KPC chief executive officer, Farouk al-Zanki, also hailed the state-owned group’s new cooperation with Total.
“Total, with its long experience in the downstream business in China coupled with know how in refining and petrochemical operations, will add value to the China project,” he said in the statement.
The Total chief told reporters in Kuwait on Tuesday that the French group’s share of the whole venture will be at 20 percent, while KPC will hold 30 percent.
“In the end, Total will have 20 (percent of the complex), KPC 30 (percent) and Sinopec 50 (percent),” he said.