Total S.A. acquires 10% stake in Zhanjiang refinery project

Total S.A., France’s integrated oil and gas company, has agreed to acquire a 10% minority stake in the Zhanjiang petrochemical project in China from Kuwait Petroleum International Ltd. (KPI) and Petrochemicals Industries Company (PIC), wholly-owned subsidiaries of Kuwait Petroleum Corporation (KPC). China Petroleum & Chemical Corporation (Sinopec Corp) holds a 50% stake in the Zhanjiang petrochemical project. The project is scheduled to begin operations of its 15 million-ton-a-year refinery and a 1-million-ton-a-year ethylene plant in 2015. The Zhanjiang refinery will produce gasoline that meets Euro 5 emission standards, as well as diesel fuel that is compliant with Euro 4 standards. The project includes the development of a 300,000 barrel-per-day full-conversion refinery and will process Kuwaiti crude as feedstock. “KPC is pleased to expand its cooperation with Total. Total, with its long experience in the downstream business in China coupled with know how in refining and petrochemicals operations, will add value to the China project. Moreover, Total and KPC’s strategic objectives in Guangdong are highly aligned,” said Farouk Al Zanki, CEO of KPC. In response, Christophe de Margerie, chairman and CEO of Total, said, “The project is in line with our strategy of expanding in growth markets, based on a few highly competitive and integrated platforms.” (March 14, 2012)