KPC looking to sell stake in joint venture refinery in China

Kuwait Petroleum Corp. (KPC) wants to sell up to a 20% stake in a joint-venture (JV) oil refinery to be constructed in Zhanjiang City in Guangdong province, China. KPC plans to construct the project together with China Petrochemical Corp. (Sinopec Group), but wants to sell the stake to lower financial risks associated with the US$9-billion facility which will have a crude oil distillation capacity of 300,000 barrels per day (bpd), an ethylene plant with a 1-million-ton-per-year capacity and an associated network of fuel retail outlets in Guangdong. According to Kuwait Petroleum Chief Executive Officer Farouk Hussain Al-Zanki, the selection process for the third investor for the project will be finalized soon, although the percentage stake to be sold will be determined based on issues such as how many retail outlets KPC can obtain. (October 18, 2011)