MOSCOW (MRC) -- Jiangxi Copper Corp said on Wednesday it would set up a joint venture with the Jiangxi region branch of Chinese refining giant Sinopec to market oil products in the southeastern province of the country, reported Reuters.
The venture, which allies China’s biggest copper producer with its biggest crude oil refiner - officially known as China Petrochemical Corp - was described as a "win-win" move in a statement posted on Jiangxi Copper’s official WeChat social media account.
The new company, to be called Jiangxi Copper Petrochemical Sales Co, will be 51%-owned by Sinopec, with the remainder belonging to Jiangxi Copper, and have a registered capital of USD2.91 MM, according to the statement.
Financial targets for the venture, which had been under discussion for 20 months before being approved by both sides, weren’t disclosed.
Sinopec did not immediately respond to a request for comment.
As MRC wrote previously, in June 2016, Rosneft and China Petrochemical Corporation (Sinopec Group) signed a Framework Agreement on joint pre-feasibility study of the project related to the construction and operation of a gas processing and petrochemical complex in East Siberia. The Agreement signed in furtherance of the Memorandum of Understanding on cooperation in petrochemical projects, provides to select a technology for natural gas processing from its components to polymers. The parties also decided to choose a consultant for the project management and identified competitive challenges and the time to fix them before entering the stage front-end engineering design (FEED). In the event of successful outcomes as stipulated by the Framework Agreement, it is supposed to create a joint venture between Rosneft and Sinopec in 2017.
China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
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