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China National Offshore Oil Corporation (CNOOC, SEHK: 0883) said on June 15 that it officially started construction of petrochemical industry integration project in Taizhou with a total investment of nearly CNY 10.2 billion on June 11 and plans to complete and operate it by 2015 end.

The project will become a vital lubrication oil production base for CNOOC by then.

The project includes atmospheric and vacuum distillation unit with an annual output of 3 million tons, lubrication oil hydrogenation equipment with an annual output of 600,000 tons and other 8 main devices, supporting tank field and public facilities. The project will make averagely CNY 30 billion annual sales incomes and CNY 6.8 profits and taxes after being put into operation. Oil and gas development company under CNOOC umbrella will form multi-product mix mainly consisting of high-quality lubricating base oil, chemical light oil and refined fuel oil, also including auxiliary products like arene, solvent naphtha, liquefied gas, coke and liquid ammonia.

CNOOC chairman Wang Yilin pointed out the project is an important support for CNOOC to realize downstream strategic plan in the Pearl River Delta region, Yangtze River Delta region and around the Bohai Bay. The project will help the company upgrade industrial structure of petrochemical sector in East China and improve overall competitive power of CNOOC.