Sinopec in talks with foreign partners on potential ventures<\/p>\n
Loretta Ng and Stephen Voss, Bloomberg\/Hong Kong\/London<\/p>\n
China Petroleum & Chemical Corp. (Sinopec), the country's largest
\noil refiner, said it's in talks regarding potential ventures with
\nforeign companies including BP Plc, which wants a greater share
\nof the industry as Chinese economy surges.<\/p>\n
Huang Wensheng, a Beijing-based Sinopec spokesman, said such
\nnegotiations are part of its \"everyday business\" and that he's
\nnot aware of any talks for BP to acquire a stake in the company.
\nThe Financial Times reported that Sinopec is discussing a
\npartnership with BP, citing an unidentified BP executive. It
\ndidn't give details of any possible agreement.<\/p>\n
BP Chief Executive John Browne is already building ties in
\nChina, the world's fastest-growing major economy, including a
\n2001 agreement with a Sinopec unit to build a $2.7 billion
\nethylene plant in Shanghai. BP, the world's second largest
\npublicly traded oil company, formed a partnership with Sinopec in
\n2002 to open 150 filling stations a year in the eastern province
\nof Zhejiang, targeting 500 stations within three years.<\/p>\n
\"It makes sense for BP to get a foot in the Chinese market,\"
\nKlaus Hagedorn, who manages about $900 million at Metzler
\nInvestment GmbH in Frankfurt, said in an interview on Thursday.
\n\"China is a very energy hungry country.\"<\/p>\n
Chinese oil companies are increasingly looking abroad for
\ninvestment and access to oil reserves. CNOOC Ltd., China's
\nbiggest offshore oil producer, sought to buy Unocal Corp. of the
\nU.S. earlier this year, before it was barred by U.S. lawmakers.<\/p>\n
\"Sinopec is always in talks with various multinational
\ncompanies, including BP, all the time,\" Huang said. \"Our
\npartnership with BP has been there for some time. We've been
\nworking together on some projects since years ago. There is
\nalways room to do business together.\"<\/p>\n
BP spokesman David Nicholas declined to comment.<\/p>\n
\"Virtually all of our ventures in China are joint ventures,\"
\nNicholas said. \"As with all joint ventures, we are always in
\ndiscussions with our partners about possible activities, but we
\nwould we never talk about current discussions.\"<\/p>\n
UK Prime Minister Tony Blair visited China last month with a
\ndelegation of business leaders including Gary Dirks, president of
\nBP China Ltd.<\/p>\n
Blair's spokesman, Tom Kelly, told reporters he is \"not aware\"
\nof any talks between BP and Sinopec. \"It would be a commercial
\nmatter.\"<\/p>\n
Shares of Sinopec, which have gained 5.5 percent this year,
\nwere at HK$3.375, up 0.8 percent, in Hong Kong while BP shares
\nwere down 12.5 pence, or 2 percent, at 621.5 pence at 12:16 p.m.
\nin London. Sinopec has lagged this year's 47 percent advance by
\nPetroChina Co., the nation's largest oil producer, amid declining
\nprofit margins caused by soaring crude-oil costs.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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