Anglo-Dutch oil giant Royal Dutch/Shell and China Petroleum and Chemical Corp (Sinopec Group) have launched a 187 million dollar service station joint venture, the companies said Monday.
The new venture, Sinopec and Shell (Jiangsu) Petroleum Marketing Co, will develop and operate a network of about 500 service stations in eastern Jiangsu province, they said in a joint statement.
Sinopec holds a controlling 60 percent stake in the new company, which has registered capital of 830 million yuan (100 million dollars), according to the terms of the deal signed over the weekend.
Shell China Holdings BV holds a 30 percent stake and Shell (China) Ltd holds 10 percent.
Some 180 service stations will start operating in Suzhou, one hour west of Shanghai, by the end of this year, with another 100 petrol stands to be set up in neighbouring Wuxi and Changzhou by end 2005.
The new company will buy or lease the service stations from Sinopec's existing network as well as develop new sites.
Comments
Comments are closed.