2023.04.03
On March 27, 2023, the signing ceremony of the preliminary investment agreement for the Huizhou Phase III Ethylene Project of CNOOC Shell was held in Beijing. The ceremony marked the milestone of two oil giants working together to write a new chapter of refinery and chemical integration.
Wang Weizhong, deputy secretary of CPC Committee and the governor of Guangdong Province, Wang Dongjin, chairman of the board of CNOOC, and Wael Sawan, CEO of the Shell Group attended the ceremony. The Huizhou Municipal Government, the Daya Bay District Management Committee, CNOOC Refining and Chemical Company and Shell Nanhai Private jointly signed the preliminary investment agreement for the CNOOC Shell Huizhou Phase III Ethylene Project.
The total planned investment for this project is RMB 52.1 billion. The construction of a 1.6 million ton/ethylene cracking unit is planned with 18 downstream chemical plants and supporting systems. This project will introduce several advanced technologies to China and Asia and it will be the largest single metallocene polyethylene plant in the world.
The Phase III Project is the second cooperation between CNOOC and Shell Group after their previous cooperation on the Phase I and Phase II Projects. After the completion of the Phase I and II Projects, CNOOC Shell became one of the largest ethylene monomer production plants in China. The CNOOC Shell Huizhou Phase III Ethylene Project is in line with the strategic layout of the national petrochemical industry. In February 2019, it was included in the second batch of national major foreign investment projects, and in April 2022, it was officially included in the national planning.
JunHe has served as the Chinese legal advisor of Shell since 2019 and advised the company on the preliminary investment agreement and other relevant matters. The project team’s business sectors worked together to successfully handle the many challenges that arose, provided highly professional integrated legal services and ultimately assisted the client to successfully achieve the signing of the contracts.
JunHe partners XIAO, Wei, Catherine MIAO and QIN, Yu (Bill) led the team in this Project and JunHe partners QIN, Yu (Bill) and DU, Lijing primarily undertook the work.
