China National Offshore Oil Corporation (CNOOC) has got approval for its South China Sea Oil Refinery Project on Aug 3. CNOOC's production chain will be more complete after adding oil refinery, and this is an important step towards its goal to build a comprehensive energy corporation with strong competency in the world.

Situated to the west of the CNOOC and Shell's Petrochemical Ethylene Project in Huizhou, Guangdong, the South China Sea Oil Refinery Project, with total investment of 16.7b bln yuan, is the largest project with annual output of 12 million tons of heavy crude oil with high acid content, and thus the largest oil refinery project in China. The construction of the project will begin at the end of 2005 and be completed in the first half of 2008. Once completed, it will be able to providing raw materials to the South Sea Ethylene Project. Through mutual supply of raw material and share of public utilities, the two projects will enjoy each other's advantages, lower the investment, improve economic profit and enhance ability to resist risks.

By People's Daily Online