Total and two subsidiaries of Kuwait Petroleum Corp., Kuwait Petroleum International (KPI) and Petrochemical Industries Company (PIC) have signed a comprehensive memorandum of understanding (MOU). The MOU covers targeted participation in the Zhanjiang project in China. This project consists of a planned development of a large size (300 000 bpd), a full-conversion refinery integrated with petrochemicals and marketing, in partnership with Sinopec.
The proposed refining and petrochemicals platform will be designed to process Kuwaiti crude as feedstock and to produce high quality refined and petrochemical products.
Christophe de Margerie, Chairmand and CEO of Total said, "This agreement will be the keystone of a long term relationship with KPC ... The project is in line with our strategy of expanding in growth markets, based on a few highly competitive and integrated platforms."
KPI, PIC and Total have agreed to form a consortium, which will potentially hold interests in two joint-ventures together with Sinopec. The MOU sets forth the agreement between KPI, PIC and Total regarding the development of the project.
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