PetroChina and INEOS Complete Transaction to form Trading and Refining Joint Ventures Related to the Refining Operations in Grangemouth (Scotland) and LavÃ©ra (France)
ROLLE, Switzerland, July 3, 2011 /PRNewswire/ –
PetroChina Company Limited (PetroChina) and INEOS Group (INEOS) have
completed the deal to form trading and refining Joint Ventures between
PetroChina International (London) Company Limited, and INEOS Investments
(Jersey) Limited on July 1st.
The joint ventures include trading and refining activities at the
Grangemouth refinery in Scotland and the Lavera refinery in France. The
business employs approximately 1,000 people and has a turnover of $15bn.
PetroChina has paid $1.015 billion cash for the shares in the joint
Li Keqiang, the Chinese Vice Premier, and Nick Clegg, the British Deputy
Prime Minister, witnessed the signing of the framework agreement to form the
Joint Ventures, in January. The completion of the transaction, announced
today follows a successful consultation process with INEOS employees, the
approval of INEOS lenders and relevant Government and regulatory bodies.
The completion of the joint ventures are of great importance for
PetroChina’s global allocation of resources and market portfolio, as it
explores the high-end European market, and begins to establish PetroChina’s
European oil and gas operation centre. “The Joint Ventures with INEOS are
consistent with PetroChina’s strategy to build its broader business platform
in Europe as a leading international energy company,” said Si Bingjun,
General Manager of PetroChina International London.
The formation of the joint ventures creates a strategic partnership
between both companies that strengthens the long-term sustainability of both
refineries, enhances security of supply for customers and secures jobs and
skills in both the UK and France. “We are delighted to have PetroChina as
our long-term strategic partner in both the Grangemouth and Lavera
refineries”, said Calum MacLean CEO, INEOS Refining. “The formation of the
joint ventures provides further investment in our refineries, and enhances
their competitiveness in European markets.”
PetroChina’s ultimate parent company, China National Petroleum
Corporation (“CNPC”), and INEOS are also progressing a strategic
co-operation agreement to share refining and petrochemical technology and
expertise between their respective businesses.
The Grangemouth refinery is located on the Firth of Forth with direct
access to crude oil and gas from the North Sea. The Grangemouth refinery
processes around 210,000 barrels of crude oil per day and provides fuel to
Scotland, Northern England and Northern Ireland.
The Lavera refinery processes 210,000 barrels of crude oil per day. It
is located on the coast of the Mediterranean crude oil trading basin, next
to the port of Marseille. The refinery supplies fuel by pipelines into
France, Switzerland and Southern Germany.
Both sites remain integrated into INEOS’ downstream petrochemical
production after the completion.
SOURCE PetroChina Company Limited (PetroChina) and INEOS Group (INEOS)