Sinopec, Saudi Aramco and Exxon Sign JV Contract for Expanded Refining Project in China

25 February 2007

Sinopec, Fujian Province, ExxonMobil and Saudi Aramco have signed the contract for the Fujian Refining and Ethylene Joint Venture Project. At the same time, Sinopec, ExxonMobil and Saudi Aramco signed the contract for the Fujian Fuels Marketing Joint Venture Project.

The signing of the two joint venture contracts will lead to a six-fold expansion in the output of the current Fujian refinery (from 80,000 bpd to 240,000 bpd), and marks the first fully-integrated project in China with foreign participation involving refining, petrochemicals and fuels and chemicals marketing.

The Fujian Refining and Ethylene Joint Venture Project, located in Quanzhou, Fujian Province, will expand the existing refinery from 80,000 barrels-per-day (4 million tons-per-year) to 240,000 barrels-per-day (12 million tons-per-year). The upgraded refinery will primarily refine and process sour Arabian crude supplied by Saudi Aramco.

In addition, the project will construct an 800,000 tons-per-year ethylene steam cracker, an 800,000 tons-per-year polyethylene unit, a 400,000 tons-per-year polypropylene unit and an aromatics complex to produce 700,000 tons-per-year of paraxylene. Support facilities including a 300,000 ton crude berth and 280 MW power cogeneration will also be built. Electricity generated by the cogeneration facilities will provide about 80% of the power requirement.

This joint venture company will be owned by Fujian Petrochemical Company Limited (a company owned 50% by Sinopec and 50% by Fujian Government), ExxonMobil China Petroleum and Petrochemical Company Limited (25%) and Saudi Aramco Sino Company Limited (25%). Currently, the project is expected to start up in early 2009.

The Fujian Fuels Marketing Joint Venture Project will manage and operate approximately 750 service stations and a network of terminals in Fujian Province. It will be owned by Sinopec (55%), ExxonMobil (22.5%) and Saudi Aramco (22.5%).