Business / Companies

Shell senses huge profit potential in China

By Du Juan (China Daily) Updated: 2014-06-13 07:11

"We have rich experience in the non-fuel sector in our service stations in global markets, and Shell China will bring ones that can fit into the market," Kapitany said.

He said up to 60 percent of Shell Retail's income in Norway is from non-fuel businesses such as car washes, fast food and convenience stores.

Oil deal to bolster Sino-Kuwait ties

China and Kuwait have signed an agreement that seeks to expand the cooperation between the two countries in the oil sector.

An agreement to this effect was signed by China's National Energy Administration and Kuwait's Ministry of Oil during Kuwaiti Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah's recent trip to Beijing.

Under the deal, announced on Thursday by the NEA, Kuwait will increase its crude exports to China, a move that experts said would help the world's second-largest economy's plan to create strategic oil reserves.

The two governments will also increase cooperation in sectors like upstream crude exploration, engineering services and downstream refining.

Companies from the two sides will also strengthen their cooperation in oil technology and oil projects iin other nations.

Kuwait is one of the major crude producers in the Middle East and the 10th-biggest foreign crude supplier to China with an export volume of 9.4 million metric tons in 2013. China imported 280 million metric tons of crude from other countries in 2013.

"Chinese oil companies have already established good cooperation with the Kuwaiti side in exploration, refining and oil services in recent years," said Han Jingyuan, analyst with JYD Online Corp, a Beijing-based bulk commodity consultancy.

Sinopec Group, China's largest refiner, teamed up with Kuwait's national oil company for a refining project with a total investment of 59 billion yuan ($9.5 billion) in 2011, according to Han.

The project, located in Zhanjiang, Guangdong province, has an annual refining capacity of 15 million metric tons and ethylene production capacity of 1 million metric tons a year.

Han said the new agreement signed between the two countries will accelerate the progress of the project.

During the meeting between Premier Li Keqiang and the Kuwaiti prime minister on June 3, Li said China hopes the Kuwaiti side will open up the upstream oil and gas industry to Chinese companies.

Shell senses huge profit potential in China

Shell senses huge profit potential in China

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