Layout of acrylonitrile CNOOC Petrochemical plans to acquire all shares of Dongfang Petrochemical for 1.305 billion yuan

CNOOC Petrochemical announced that on June 30, 2022, the company entered into an equity transfer agreement with CNOOC Refinery, pursuant to which the company has agreed to purchase, and CNOOC Refinery has agreed to sell the entire equity interest in Dongfang Petrochemical at a cash consideration of RMB 1.
305 billion yuan
.
After the closing, Orient Petrochemical will become a wholly-owned subsidiary of the company
.

Orient Petrochemical is a limited liability company incorporated in the PRC and is principally engaged in petroleum refining and the manufacture, sale, storage and trading of petroleum and petrochemical products
.

The main production units of Dongfang Petrochemical include 2 million tons/year raw material pretreatment unit, 1.
2 million tons/year catalytic cracking (DCC-Plus) unit, 120,000 tons/year ethylbenzene-styrene unit, 500,000 tons/year gasoline processing unit.
Hydrogen unit, 600,000 tons/year diesel hydrogenation unit,
etc.
Among them, the catalytic cracking (DCC-Plus) device of Dongfang Petrochemical can better extract carbon and hydrogen elements in oil and natural gas, and carbon and hydrogen elements are important raw materials for new chemical materials
.

The proposed acquisition is in line with the general trend of the petrochemical industry developing towards high-end chemical industry and the requirements of energy conservation and emission reduction policies
.
During the 14th Five-Year Plan period, competition in the petrochemical industry will be further intensified, the industry will enter a period of overcapacity reduction and adjustment to make up for shortcomings, and the chemical industry will develop towards high-end chemical products based on synthetic materials
.
Dongfang Petrochemical has good resource support, and its petrochemical capacity can provide abundant carbon and hydrogen elements.
The guarantee of these basic chemicals will provide a huge development for the company in the future development of new chemical materials and functional chemicals.
space, implementation conditions and technological support
.

The proposed acquisition will enable the company to form an efficient development model integrating natural gas chemical industry and petrochemical industry, make better use of the advantages of light crude oil and carbon-rich natural gas resources in the South China Sea, avoid risks, increase efficiency and improve profitability
.
The proposed acquisition is also in line with the company's strategic development requirements for the deployment of acrylonitrile business
.
The field of new chemical materials is the company's key transformation and development direction in the future.
Considering the company's industrial base, resource endowment and other factors, the company plans to use Fudao Chemical's self-produced liquid ammonia and Dongfang Petrochemical's production of propylene, styrene and other raw materials to build an acrylonitrile project.
Based on this, it is an effective way for the company to transform and develop the new chemical material industry by extending to the downstream industry chain and deploying high-end chemical new material industries such as ABS
.
From the perspective of industrial development planning, product portfolio, location logistics, and local policies, Dongfang Petrochemical is a more suitable acquisition and integration target, and can further stimulate the profit potential of the assets through technological transformation and cost reduction and efficiency enhancement measures
.

The proposed acquisition is conducive to taking advantage of the location advantage and realizing synergistic economic effects
.
Dongfang Petrochemical and Fudao Chemical are located in the same production park.
After the delivery, Dongfang Petrochemical and Fudao Chemical will be managed by the company in a unified manner.
Through measures such as mutual supply of materials, optimized management, integration of land and public engineering resources, and streamlined management, they will take advantage of their integration to improve The overall safety level will help regional coordinated development
.