Beijing, Feb. 27 - China Petroleum and Chemical Corporation (Sinopec) has signed a joint venture contract with Saudi Aramco and ExxonMobil to refine and process sour crude oil in southeastern China's Fujian Province, Xinhua News Agency reported.

 

Sinopec, Saudi Aramco and ExxonMobil will have 50 percent, 25 percent and 25 percent stakes respectively in the joint venture project, which will start operation in 2009, with an output of 240,000 barrels per day, or 12 million tons per year.

 

The three oil giants will also establish a retail company, with Sinopec, Saudi Aramco and ExxonMobil possessing 55 percent, 22.5 percent and 22.5 percent stakes respectively. The company will operate 750 gas stations and a network of terminals in Fujian.

 

Total value of the two deals was unavailable in the statement of the three companies but a preliminary estimate in 2005 showed it would amount to 3.5 billion U.S. dollars, reported Tuesday's Shanghai Securities News.

 

With the Saudi Arabian company providing the hydrocarbon resources, Sinopec will be able to lower its production cost and avoid losses from fluctuations of oil prices on the international market, the report quoted Qiu Xiaofeng, an analyst with the Everbright Securities, as saying.