Total, Kuwait's KPC sign China refinery agreement

Kuwait Petroleum Corp. and France's Total on Tuesday signed a memorandum of understanding to be partners in a Kuwait-China oil refinery joint venture, the French energy giant said. The joint venture, in partnership with China's Sinopec, will develop a refinery with a processing capacity of 300,000 barrels per day, in addition to a petrochemical complex, Total said in a statement issued on the sidelines of the International Energy Forum in Kuwait. The complex to be built in Zhanjiang, in China's southern Guangdong province, will process Kuwaiti crude oil. Kuwait Petroleum International (KPI), KPC's international arm, and China's state-owned Sinopec signed an agreement more than two years ago to build the $9 billion (6.9 billion euro) complex. KPI has been negotiating with international oil majors to sell 20 percent of its 50 percent stake, or 10 percent of the total project. "This agreement will be the keystone of a long-term relationship with KPC," Total chief executive officer Christophe de Margerie said in the statement. "The project is in line with our strategy of expanding in growth markets, based on a fewly highly competitive and integrated platforms," he said. KPC chief executive officer, Farouk al-Zanki also hailed the state-owned group's new cooperation with Total. "Total, with its long experience in the downstream business in China coupled with know how in refining and petrochemical operations, will add value to the China project," he said, according the French statement.