Chinese oil giant PetroChina agreed on Monday to buy into two refineries in France and Scotland of British firm INEOS, expanding its global refining foothold as China caps domestic fuel prices to tame inflation. "The proposal is consistent with our strategy of building a broader business platform in Europe and of becoming a leading international energy company," Si Bingjun, general manager of PetroChina International London, said in a statement.
The framework deal between PetroChina, the world's second most valuable energy firm and China's second-largest refiner, and INEOS will allow the formation of refining ventures at the Lavera refinery in France and Grangemouth in Scotland. INEOS director Tom Crotty said Petrochina and INEOS will each hold 50 percent in the Lavera and Grangemouth refineries.