BP Amoco Takes Equity Stakes in Petro China

BP Amoco and Petro China have reached an initial agreement that the former will take 20 percent of the shares currently being offered, up to a maximum of one billion US dollars, by Petro China through its initial public offering.

The agreement signed last weekend has yet to be approved, said an official with the China National Petroleum Corp. (CNPC). The two companies intend to cooperate in building energy infrastructure facilities, including an LNG terminal, and in supplying imported and domestic gas to the regions around Shanghai and the Yangtze River Delta, according to the initial agreement. BP Amoco and Petro China still also aim to build or acquire up to 150 service stations in the first year of operation, and maintain that momentum towards building a significant retail presence nationwide within five to seven years. In addition, the two companies will consider joint expansion in lubricants and aviation fuels, a BP Amoco source said.

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