By Miyoko Ishigami (with photos) BEIJING, Oct 16 (KUNA) -- Kuwait Petroleum Corporation (KPC) attaches most importance to excellent experience and unique technology in petrochemical when choosing potential international partners for a USD 9 billion joint project with China, in consideration of its highly profitable petrochemicals part, KPC Chief Executive Officer Farouk Al-Zanki said.

"The selection process of the third investors for the refinery and petrochemical plant will be finalized soon," Al-Zanki said in an interview with Kuwait News Agency (KUNA) during his just-concluded Asian trip.

"This project is one of the pillars of our expansion strategy for 2030 and expectation for success is very high," he said.

The project with Asia's top refiner Sinopec, potentially to be the largest Sino-foreign joint venture in China, involves a 300,000 barrel-per-day refinery, a 1 million-ton-a-year ethylene plant and a network of retail stations in the southern Guangdong Province. With an eye to starting operations at the end of 2014, the construction has already begun.

State-owned KPC and Sinopec will each hold an equal 50 percent stake in the joint venture. "We KPC still plan to give around 20 percent of our share to potential international investors, but a final decision will be made after ample studies of pivotal issues, such as number of petrol stations we can obtain," Al-Zanki said. Teaming up with international oil majors enables KPC to reduce its financial risks while utilizing their know-how and worldwide experience.

Kuwait Petroleum International (KPI), KPC's international refining and market unit, has been representing Kuwait in lengthy negotiations with the Chinese side since 2005. Kuwait has pledged to supply all the crude feedstock for the world-class integrated complex, to be located in the southern coastal city of Zhanjiang.

"We have achieved a substantial progress so far, and now discussions with Sinopec on retail sites are underway," Al-Zanki said, noting that KPC seeks larger share of the retail rights, particularly ownership of petrol stations, in order to secure satisfactory economic returns from the project. "In our last meeting, Sinopec promised to seriously consider our requests." With a population of some 100 million, Guangdong is China's largest oil consuming province that creates a huge energy market.

In addition to seeking greater retail rights, the Kuwaiti side also stresses the need for simultaneous startup of both refinery and ethylene plant, Al-Zanki said.

"The petrochemicals facility should be commissioned without delay, and this profit-earning part is inseparable from the refinery part." The National Development and Reform Commission (NDRC), China's top economic planner, regulates fuel prices at 20-30 percent below world market levels to curb inflation and Chinese refineries often lose money on their refining operations when crude oil prices are soaring.

KPC commits to the whole project as approved by the NDRC in March, which includes both refinery and petrochemicals.