BBC World Service

PetroChina strikes a deal with INEOS

Rebecca Singer Jan 11, 2011
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BBC World Service

PetroChina strikes a deal with INEOS

Rebecca Singer Jan 11, 2011
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TEXT OF STORY

STEVE CHIOTAKIS: China’s largest oil and gas producer has struck a deal with a British energy company. And that’s gonna give China a stake in one of Britain’s key oil refineries in Scotland, and another in France. But why is a Chinese company interested in these operations?

The BBC’s Rebecca Singer has that.


: For PetroChina, this joint venture is about expanding to become a truly global company. And striking a deal with Britain’s INEOS gives it unprecedented access to Western European markets. Questions have been asked about whether China will use the oil for their own purposes. But Tom Crotty, one of the directors of the Ineos group, says China doesn’t need the oil.

TOM CROTTY: If they wanted it for their own needs they’d be spending the money building refineries in China. This is very much about building a strategic long term business. It helps us develop our strategy in Asia because we’ll be doing more work there with them as well.

Crotty says PetroChina will the two European refineries to make them more competitive. And apart from oil refining, PetroChina will get access to Scottish energy research — considered to be among the best world. China has already secured another deal to introduce renewable energy technology pioneered in Scotland.

In London, I’m the BBC’s Rebecca Singer for Marketplace.

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