27-03-02 Oil giant Shell Group and the China Petroleum and Chemical Corp. (Sinopec) have agreed to set up a retail joint venture in eastern China. A Memorandum of Understanding has been signed with a view to establishing a network of 500 petrol stations in the coastal province on Jiangsu over the next three years.
Shell Group's mid-term strategy is to see a total investment in China of around $ 5 bn by 2005.

The deal forms part of a strategic alliance between Sinopec and Shell to partner up on a range of opportunities in oil and gas exploration and production, oil products and gas marketing, and coal gasification. Shell has also entered into an agreement to purchase 14 % of the IPO of Sinopec up to a maximum of $ 430 mm.