Sinopec, Korea National Oil sign MOU on long-term cooperation

Sep. 28, 2009 (China Knowledge) - China Petrochemical Corp, the parent of Sinopec<600028><0386><SNP>, Asia's largest oil refiner, has inked a memorandum of understanding with South Korea-based oil company Korea National Oil Corp, sources reported.

The MOU will enable the two sides to cooperate in crude oil storage, trade and marketing in the future, said Sinopec in a statement, without disclosing more details.

Sinopec Group has officially taken over two oil reserve depots under the first-phase of the reserve program launched by the Chinese government, China Knowledge reported earlier.

One oil reserve base, which is located in Huangdao, Shandong Province and went into operation in November 2008, has a storage capacity of 3.2 million cubic meters. The other one, located in Zhenhai, Zhejiang Province and went into operation in August 2006, has a storage capacity of 5.2 million cu m.

In addition to the two bases, the first-phase reserve program, which comprises a total reserve of 12 million cu m, includes another two oil reserve depots, located in Zhoushan, Zhejiang Province and Dalian, Liaoning Province respectively.

H shares of Sinopec fell 1.35% to close at HK$6.58 on Friday.