CNOOC looking to acquire refiner in east China

CNOOC Ningbo Daxie Petrochemical Ltd. is in discussions to acquire a 100% stake in Zhejiang Zhoushan Hebang Chemical Co. Ltd., with a production capacity of 250,000 tons per year of aromatic hydrocarbons. Ningbo Daxie, on the other hand, is a fuel oil producer under the aegis of China National Offshore Oil Corporation (CNOOC) with atmospheric and vacuum distillation facilities with an annual processing capacity of 8 million tons. Its shareholders include CNOOC Oil & Gas Development and Utilization Company and petrochemicals processor Hong Kong Liwan Group. After the acquisition, Ningbo Daxie will become the sole producer of national-standard gasoline and diesel oil in east China under CNOOC. Since the products sold by CNOOC in the region are mainly supplied by China National Petroleum Corporation (PetroChina Group) and China Petrochemical Corporation (Sinopec Group), the acquisition of Zhoushan Hebang will help CNOOC’s product sales. (February 6, 2009)