CNPC to join hands with CRCC

time2009/09/01

The China National Petroleum Corporation (CNPC) and China Railway Construction Corporation Limited (CRCC) will set up a joint venture to enhance their domestic cooperation in the petrochemical field.

According to an agreement signed by the two State-owned companies August 21, CNPC will provide gasoline, diesel oil, asphalt and lubricating oil for CRCC's projects, while CRCC will adopt a "centralized purchase and specialized supply" policy towards CNPC's products to stabilize the latter's sales.

A spokesman from the CNPC's board of directors told Caijing Magazine on Monday that the construction plan of the joint venture is underway and detailed information will be disclosed later.

In facing the global financial crisis, the State-owned Assets Supervision and Administration Commission of the State Council has urged large State-owned enterprises to enhance their cooperation and survive the tough time together. The establishment of the joint venture between CNPC and CRSS is in line with the government's policy, said Li Guorui, board chairman and Party secretary of the CRCC, on August 21.

Many of CNPC and CRCC's overseas business, especially those in Africa and the Middle East, are located in the same regions. CNPC's overseas gas and oil projects cover 28 countries and regions, including Algeria and Nigeria, while projects constructed under CRSS can also be found in countries like Algeria, Nigeria, Saudi Arabia, Israel and Turkey, according to CRCC's official website.

CNPC is China's largest oil and gas producer and supplier, while CRCC is the nation's largest project contractor and ranks fourth among the world's 225 biggest contractors.
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