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PetroChina and INEOS sign framework agreement

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Publish time: 12th January, 2011      Source: CNPC
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On January 10, 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 Group Holdings plc (INEOS). The two parties will have principal arrangement for new trading and refining JV in Europe. CNPC, PetroChina''s parent company, and INEOS today also signed a strategic cooperation agreement on refining& petrochemical technology and expertise.

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 in the first half of 2011.

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.
Both PetroChina and INEOS believe that these deals are the start of a long-term relationship between PetroChina and INEOS. 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.