Sinopec and SIBUR Enter into a Strategic Cooperation Agreement

Witnessed by the Chinese President Xi Jinping and the Russian President Vladimir Putin, China Petrochemical Corporation (Sinopec Group) and SIBUR today entered into a strategic cooperation agreement during a state visit of President Putin to China. The arrangements provide for both parties to deepen strategic cooperation.

As part of the cooperation, the parties will discuss potential expansion of trading operations and look into collaboration opportunities in gas processing and petrochemicals projects.
The parties believe that the strategic partnership between Sinopec and SIBUR will facilitate further strengthening of the companies’ leading market positions through sharing of the joint expertise and resources.

Sinopec commented, “This partnership will help diversify and secure Sinopec's long-term sourcing of petrochemical products and expand Sinopec's overseas footprint, facilitating strategic collaboration and continual exchange of expertise”.

SIBUR commented, “The partnership between SIBUR and Sinopec, a global chemical industry leader, will enable SIBUR to maximise the efficiency of new large-scale projects, expand its competencies and distribution markets, and support the Russian petrochemical industry in achieving a new level”. The parties will engage in further discussions to determine the details of the strategic cooperation.

China Petrochemical Corporation (Sinopec Group) is the largest integrated energy company in China. Its main operations include exploration and development of oil and gas resources, refining and sales of petroleum products, production and sales of chemicals, engineering services for petroleum and refining projects, international trade, and research and development. Sinopec is Asia’s largest producer of refined oil, and world’s second largest. It is also the fourth largest producer of ethene globally. Sinopec owns 30,000 petroleum stations, the third largest network in the world. It ranks 4th in the list of Fortune 500 companies in 2013. In October 2000 and August 2001, PetroChina Company Limited, controlled by Sinopec Group, commenced issuance of H and A shares respectively, listing on the stock exchanges of Hong Kong, New York, London, and Shanghai. For more information, please visit www.sinopec.com.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.

Source: SIBUR