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China oil refiners set up $5 billion joint venture

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Staff Writer | October 11, 2017
A group of six Chinese independent oil refiners set up a 33 billion yuan ($5 billion) joint venture to compete with state-owned giants and the rise of private chemical giants.
China oil refiners
Oil exploration   A group of six
The new alliance, called Shandong Refining & Chemical Group, gathers six independent oil processors and a provincial government-backed fund as investors, and was registered in late September, said Zhang Liucheng, a vice president of Shandong Dongming Petrochemical Group.

Dongming, China's largest independent refiner, is the venture's biggest stakeholder with 22.63 percent. The number of investors, though, is much smaller than the around 20 independent, or "teapot", refiners expected earlier by the two initiators Shandong Dongming and the Shandong Qingyuan Group.

A fund managed by Shandong province-backed Shandong Marine Group owns 22.59 percent and is the second-largest shareholder, said Zhang.

Members of the alliance are expected to coordinate their production, marketing, crude oil imports and investments.