Kuwait In Talks With BP, Others Over China Refinery

Kuwait is in talks with BP and other major energy companies over a possible role in its $9 billion refining joint venture with Sinopec in China, a Kuwaiti official said on Tuesday.

Mohammed Jasem, vice president and chief planning officer for Kuwait Petroleum International, the overseas arm of the state oil company, told reporters Kuwait hoped to conclude the partner selection process by May.

"We are not at the final stage. Along with BP there are others," Jassem said. "The door is open for whoever is potentially interested."
The $9 billion refinery and petrochemical project was approved by Beijing last month and is part of Kuwait's aim of more than doubling crude exports to China to 500,000 barrels per day (bpd).

The project consists of a 300,000 bpd reinfery and a 1 million ton-per-year ethylene cracker. Kuwait and Sincopec are equal partners in the project.

Kuwait exported less than 200,000 bpd to China in 2010 but Beijing is keen to lock in future oil supplies to feed its booming economy.
A third partner would be expected to bring financing to the project.

Kuwait held talks in 2009 with Royal Dutch Shell and Dow Chemical over a role in the project in 2009 but no deal with either firm was reached.