This is a joint press release by Sinopec Corp and Shell Companies in China.
(11 May 2004, London) China Petroleum and Chemical Corporation (Sinopec Corp), Shell China Holdings BV and Shell (China) Limited today signed a joint venture contract to develop a network of about 500 service stations in Jiangsu Province, the People?s Republic of China.
Chen Tonghai, President of the Sinopec Group and CEO of Sinopec Corp, and Rob Routs, Group Managing Director of the Royal Dutch/Shell Group of Companies and CEO of Oil Products and Chemicals, signed the contract in London, in the presence of China?s Minister of Commerce, Bo Xilai, and Britain?s Secretary of State for Trade and Industry, Patricia Hewitt.
Sinopec Corp will hold 60 per cent equity in the joint venture, with the Shell companies taking 40 per cent.
The joint venture, which involves an investment of about US $200 million, expects to have a network of about 500 service stations operational within three years of the establishment of the joint venture company.
Chen Tonghai said: ?Coinciding with Premier Wen Jiabao?s visit to the United Kingdom, the signing of this contract between Sinopec and Shell is a leading example of successful Sino-British economic and trade cooperation, as well as another milestone in our cooperation with Shell. Incorporating the strengths of both partners, the joint venture will provide clean fuels and first-class services to consumers in Jiangsu and fuel economic development.?
Rob Routs said: ?This project represents a major step-change in Shell?s retail presence in China. We are combining our international experience and expertise of developing and managing retail networks worldwide with Sinopec?s extensive experience of running major networks in China. We believe that this venture will be a tremendous success.?
The agreement today is a major milestone for the project. The next step is to obtain formal government approval of the contract and a business licence, following which the joint venture can be established.
The 100,000 sq km coastal Jiangsu province north of Shanghai is China?s second richest with a population of 73.5 million.