(ATF) China National Offshore Oil Corporation (CNOOC), the largest offshore oil and gas producer in China, and Royal Dutch Shell, signed a strategic cooperation framework agreement to build a new ethylene plant worth $5.6 billion on Sunday.
Representatives in Guangzhou, the capital city of south China's Guangdong Province, Beijing, and The Hague, signed the agreement via 5G video link, according to a report by Xinhuanet Sunday.
The new cooperation, based on the CNOOC and Shell Petrochemical Company Limited, is the CNOOC and Shell Huizhou phase III ethylene project.
With an estimated annual output value of 38.2bn yuan ($5.4bn), the project is scheduled to start construction in Huizhou, Guangdong Province, next year.
Founded in 2000, the CNOOC and Shell Petrochemical Company is one of the largest chemical joint ventures of Royal Dutch Shell in China.
Shell CEO Ben van Beurden said that the joint venture has developed into one of the largest and most competitive petrochemical facilities in China and the world.
The joint venture had produced almost 15 million tonnes of ethylene with a net profit of more than 20bn yuan by the end of last , according to CNOOC Chairman Wang Dongjin.