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          Shell, Sinopec launch $187m service venture
          (Agencies)
          Updated: 2004-08-30 16:55

          Anglo-Dutch oil giant Royal Dutch/Shell and China Petroleum and Chemical Corp (Sinopec Group) have launched a US$187-million service station joint venture, the companies said.

          The new venture, Sinopec and Shell (Jiangsu) Petroleum Marketing Co., will develop and operate a network of about 500 service stations in eastern Jiangsu province, they said in a joint statement.

          Sinopec holds a controlling 60 percent stake in the new company, which has registered capital of 830 million yuan (US$100 million), according to the terms of the deal signed over the weekend.

          Shell China Holdings BV holds a 30 percent stake and Shell (China) Ltd holds 10 percent.

          Some 180 service stations will start operating in Suzhou, one hour west of Shanghai, by the end of this year, with another 100 petrol stands to be set up in neighbouring Wuxi and Changzhou by end 2005.

          The new company will buy or lease the service stations from Sinopec's existing network as well as develop new sites.

          Sinopec will be the exclusive fuel supplier to the joint venture.

          "The joint venture represents another step in our cooperation," Sinopec vice chairman and president Wang Jiming said.

          "In the spirit of complementary long-term cooperation, mutual benefit and co-development, Sinopec and Shell commit to cooperating for the growth of the joint venture and the benefit of the two companies."

          The new joint venture comes on the heels of Sinopec's agreement with Exxon Mobil Corp and Saudi Arabia's Aramco on the design work for a 3.5 billion dollar expansion of an existing refinery and the addition of a chemical complex in the southern Chinese province of Fujian.



           
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