China Petroleum to negotiate investment in two refineries

NetEase Financial January 10 News China oil evening release announced that the company wholly-owned subsidiaries and the British Rexroth Group (Ineos Group Ltd.), the two wholly-owned subsidiary public has concluded a framework agreement.　　January 10, 2011, China Petroleum International Co., Ltd., a wholly-owned subsidiary of PetroChina, entered into a framework agreement with the two wholly-owned subsidiaries of the British Rexroth Group, the British Rexroth European Holdings Limited and the International Investment Corporation of the United Kingdom. The framework agreement sets out the main principles in which the parties will establish joint ventures to engage in trade activities related to crude oil refining operations in the Grangemouth (Grangemouth) refinery in Scotland and in the actual assets of the French Lavalle (Lavera) refinery,　　and to engage in crude oil refining operations using Grangemouth and Lavalle refining assets.　　Reuters reported earlier that the two refineries had a daily processing capacity of about 200,000 barrels, citing sources as saying. PetroChina said the proposed joint venture would be in line with the company's strategy of establishing a leading international integrated oil and gas business, and would be significant for the company's plan to build a broader business platform in Europe.　　The company will inject capital into the UK and enable the proposed joint venture to take advantage of its fully functional trading platform to engage in trade activities arising from Grangemouth and Lavalle refining assets.　　In addition, the announcement shows that PetroChina has signed a strategic cooperation agreement with Ineos today on the sharing of high technology and know-how between the two parties ' respective businesses. China Petroleum said that in the signing of the proposed joint venture company's legal documents, the company will be in accordance with the applicable laws and regulations issued details of the announcement.　　The proposed joint venture is expected to be established at this stage in the first half of 2011. As of January 10, PetroChina reported 11.11 Yuan, down 0.63%.