08:21, September 29, 2009
British Petroleum has considered to take part in a China-Kuwait joint refinery project in southern China's Guangdong province, Hussain Esmaiel, president of Kuwait Petroleum International (KPI), said Monday.
The KPI has started "preliminary talks" with the British oil giant, Esmaiel was quoted as saying by the official KUNA news agency. But he did not elaborate on details of the talks.
China and Kuwait in May sealed an agreement on the building of a joint refinery of 9 billion U.S. dollars.
The two countries later picked Guangdong's Donghai Island as the site for the facility. A feasibility study for the location is underway.
The project, expected to be completed in 2013, would have a crude oil refining capacity of 300,000 barrels per day and produce one million tons of ethylene per year.
Kuwait will hold 30 percent of the venture while China Petroleum & Chemical Corp, or Sinopec, will retain 50 percent, with the remaining 20 percent going to the U.S. Dow Chemical Co. and Royal Dutch Shell.
Kuwait, sitting atop ten percent of the world's proven oil reserves, will supply all the crude to the refinery, which is among China's largest joint ventures in this sector when put into operation.
The mega project would serve as a driving force for the emirate to achieve the target of exporting crude oil of 500,000 barrels per day to China by 2015.