CNOOC in talks to acquire independent refineries in Shandong
China National Offshore Oil Corp(CNOOC), the parent of CNOOC Ltd, said it is in talks to acquire several independent refineries in eastern China’s Shandong province.
‘The negotiations are going smoothly,’ Liu Junshan, a CNOOC spokesman, told XFN-Asia.
CNOOC plans to deliver crude oil pumped from Bohai Bay to the refineries in Dongying after the acquisitions, Liu said.
Most of China’s private refineries have suspended operations under mounting pressure caused by surging crude oil prices, which recently hovered around 100 usd per barrel.
CNOOC, China’s top offshore oil and gas producer, earlier signed a framework cooperation agreement with the Shandong provincial government on refining, fuel storage and logistics facilities.
The group is enhancing its downstream operations as it is seeks to become an integrated oil firm.
In October, CNOOC agreed to acquire Hebei Zhongjie Petrochemical Group Corp, with plans to boost annual refining capacity at Zhongjie to 10 mln tons within three years.
The company’s 12 mln-ton refinery project in Huizhou, in Guangdong, a joint venture with Royal Dutch/Shell, will start commercial operations before the end of this year.
Tags: CNOOC, Shell