French oil major Total in talks with Sinochem, Sinopec on oil and gas cooperation
French oil giant Total said on June 18, 2010 that the company is in talks with Sinochem Group on cooperation of jointly-funded oil service station at some major Chinese cities such as Beijing and Shanghai, foreign media reported.
Dow Jones Newswire quoted Jean Jacques Mosconi, Total's senior vice president, as saying that the company also held talks with China Petroleum and Chemical Corporation on business opportunities over refinery joint venture in China.
Mosconi made the disclosure in the Global Refining Summit held in Dutch city Rotterdam on Tuesday, saying that the potential oil refining JV might feed on crude oil from the Middle East.
He said the Chinese oil market is large and fast-growing, but the attractiveness might be hurt by the country's strict government control over product oil pricing system. China has adopted a more market-oriented product oil pricing mechanism since November 2009. But the oil companies still could not adjust the retail product oil price without government approval.
Sinopec produced 113.68 million metric tons of product oil in 2009, up 5.9 percent year on year. Its total crude oil throughput stood at 182.62 million tons in 2009, up 6.7 percent over a year earlier.