Lionel Laurent, 12.05.07, 3:00 PM ET
LONDON – China has given the go-ahead to a $5 billion oil refinery project shared between China’s Sinopec and Kuwait’s national oil company, marking a big step towards even closer ties between the Persian Gulf and its loyal Asian customer. But the European oil majors that were once reportedly involved in the project, such as Royal Dutch Shell, remained conspicuously absent from the announcement.
Chinese oil refiner Sinopec (nyse: SHI – news – people ) said that the Chinese government had approved plans to start work on the refinery project in the Guangdong province, which is slated to begin processing 300,000 barrels per day in 2010. Kuwaiti oil will be used, according to a memorandum of understanding signed with the Gulf country in 2005, and the project could be the biggest international energy joint venture of its kind in China.