Fujian Petrochemical, ExxonMobil, Aramco Sign Agreement for Submission of Fujian Project Joint Feasibility Study

IRVING, Texas (November 15, 2001) -- Fujian Petrochemical Company Limited (FPCL), ExxonMobil China Petroleum and Petrochemical Company Limited, and Aramco Overseas Company B.V. today signed an agreement to submit the joint feasibility study (JFS) for the Fujian integrated petroleum/petrochemical project to the State Development Planning Commission (SDPC) of the People's Republic of China. The JFS will soon be submitted by the three partners to SDPC.

The submission of the JFS will mark a significant milestone in the development of the integrated project at the existing FPCL refinery in Quangang, Fujian Province. FPCL is a joint venture between Sinopec and Fujian Province.

Mr. Jia Xitai, vice governor of Fujian Province, said, "The petrochemical industry is the key pillar industry in Fujian Province. The Fujian integrated petroleum/petrochemical project will definitely promote the development of the industry. The people in Fujian have been eagerly looking forward to this project to which the Fujian provincial government has attached great importance. The signing of the JFS submission agreement today represents a substantive important step undertaken by the three partners in speeding up the development of the petrochemical industry in Fujian province. I believe the Fujian integrated project will certainly promote further economic prosperity and development in Fujian and be a source of pride to the people of Fujian."

Mr. Wang Jiming, president of Sinopec Corp., said, "The Fujian integrated petroleum/petrochemical project is one of the key projects for development of Sinopec Corp. during the 10th Five-Year Plan and in the next ten years. The completion of the JFS is the result of the joint efforts and close cooperation of the project partners. In the wake of China's accession into the WTO, the three partners jointly sign the agreement today to submit the JFS, which marks an encouraging step toward the success of our cooperation."

Mr. Rene Dahan, executive vice president of Exxon Mobil Corporation, said, "I am pleased to see the signing of the JFS submission agreement by the partners in Fujian project. I am confident that our joint efforts will lead to the creation of a world-class and world-scale project that will benefit the people of Fujian and the nation as a whole. We look forward to the submission of the JFS and its approval by the Chinese government."

Mr. Abdulaziz F. Al-Khayyal, senior vice president of Saudi Aramco, said, "The signing of the JFS submission agreement marks a key milestone in the development of the Project and Saudi Aramco's strategic partnership in China. The integrated petroleum refining and petrochemical project has strong and sound fundamentals and will contribute to the exceptional economic development in Fujian in particular and in China in general. We look forward to the Chinese government's acceptance and approval of the JFS."

The Fujian venture will be a Sino-foreign joint venture among FPCL (50 percent), ExxonMobil (25 percent) and Saudi Aramco (25 percent). The JFS is a document through which the partners jointly agree on and define the objectives and plans for the joint venture.

The joint venture will be formed upon approval by the Chinese government of the JFS, the Joint Venture Contract and the Articles of Association of the Joint Venture.

The Fujian project will involve the construction of a new world-scale ethylene steam cracker, and polyethylene and polypropylene units, together with chemical derivatives manufacturing units and related distribution and marketing facilities. The petrochemical complex will be integrated with the refinery, which will expand its existing 80,000 barrel-per-day refining capacity to 240,000 barrels per day.

The expanded refinery will be complemented by a petroleum products marketing joint venture which will supply wholesale and retail products produced by the Fujian joint venture throughout Fujian province. The partners in the marketing joint venture will include Sinopec and affiliates of ExxonMobil and Saudi Aramco.

Media Contacts:
Sinopec: Mr. Chen Ge
Tel: (8610) 6499 0482
 
ExxonMobil (Beijing): Ms. Tang Ling
Tel: (8610) 6505 4142
 
ExxonMobil (Irving): Mr. Tom Cirigliano
Tel: 972-444-1107
 
Saudi Aramco: Mr. Steve Laschober
Tel: 852 2588 9350