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Three contracts worth US$830 million were signed Monday between China National Offshore Oil Corporation (CNOOC) and Shell Petrochemical Co. and three Japanese companies, JGC Corp., Chiyoda Corp. and Yokogawa Electric Corp.
The contracts were signed in Huizhou in Guangdong Province.
The three contracts involve a US$4.3 billion petrochemical complex, which will be built jointly by a subsidiary of CNOOC and the Royal Dutch/Shell Group. The complex will be the largest of its kind in China, with the China corporation and Shell each holding 50 percent stakes.
The contract won by JGC is worth US$488 million.
It will allow the Japanese company to help build an ethylene plant for the petrochemical project. Chiyoda Corp. was granted a contract worth around US$274 million to help set up a polymer facility and other operations jointly with France's Technip and Japan's largest trading house, Mitsubishi Corp.
Yokogawa Electric Corp. won a contract worth US$50 million for the automation of the complex.
CNOOC and Shell agreed to proceed with the petrochemical complex early this month after 10 years of talks. The project is China's biggest foreign investment.
The complex is due to start production in 2005 and will supply 2.3 million tons of petrochemicals annually to Chinese domestic and overseas markets. Sales are expected to total US$1.7 billion annually.
Major construction on the project will start early next year at the Daya Bay Economic and Technical Development Zone in Guangdong, about 80 km northeast of Hong Kong.
(Shenzhen Daily November 27, 2002)
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