Royal Dutch Shell, the world's third-largest oil company, plans to invest US$500 million in both the upstream and downstream sectors of oil production to increase its presence in the competitive Chinese energy market.
Shell is in talks to acquire stake in the 19.3 billion-yuan (US$2.4 billion) oil refinery being built by China National Offshore Oil Corp (CNOOC) in Huizhou. The refinery being built by CNOOC is to turn as much as 12 million tons of crude oil a year into fuels starting in June 2008. Acquisition of stake in the refinery is being planned to enable Shell to integrate the facility with its US$4.3 billion chemical joint venture with CNOOC located near this refinery. Shell has 50% stake in this refinery with a capacity to produce 800,000 tpa of petrochemicals and has the flexibility to process naphtha and gas oil, or to run ultra-light crude condensate.
24-May-06 
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