U.S. oil giant ExxonMobil Corp. said this morning it has signed a deal with China Petroleum & Chemical Corp. (Sinopec) and Saudi Aramco to expand an oil refinery in southern China, build a chemical facility, and operate a chain of 750 filling stations. Refinery capacity is expected to more than triple to 240,000 bpd.
Exxon and Saudi Aramco will each own 25% of the $5 billion venture; the rest will belong to Sinopec and the local government. The announcement follows 12 years of negotiations for ExxonMobil and 10 for Saudi Aramco.
Foreign oil companies are expanding investment in the state-dominated Chinese oil industry as the country's demand for oil, plastics and chemicals surges. ExxonMobil VP Steve Simon says that by 2015, 1/2 of all global chemical demand will come from Asia, and 1/4 from China. Other oil/chemical refiners that have already ventured into China include Royal Dutch Shell, BP plc and BASF AG.
Other foreign investment news in China this week: On Monday, Intel Corp. announced plans for a $2.5 billion chip factory in China, and yesterday Citigroup CEO Charles Price said his company planned to more than double its Chinese workforce and increase its branches there from 16 to 30.
Exxon and Saudi Aramco will each own 25% of the $5 billion venture; the rest will belong to Sinopec and the local government. The announcement follows 12 years of negotiations for ExxonMobil and 10 for Saudi Aramco.
Foreign oil companies are expanding investment in the state-dominated Chinese oil industry as the country's demand for oil, plastics and chemicals surges. ExxonMobil VP Steve Simon says that by 2015, 1/2 of all global chemical demand will come from Asia, and 1/4 from China. Other oil/chemical refiners that have already ventured into China include Royal Dutch Shell, BP plc and BASF AG.
Other foreign investment news in China this week: On Monday, Intel Corp. announced plans for a $2.5 billion chip factory in China, and yesterday Citigroup CEO Charles Price said his company planned to more than double its Chinese workforce and increase its branches there from 16 to 30.
