Integration: Qatar Petroleum says QAPCO to operate QVC

QVC is part of Mesaieed Petrochemical and QAPCO is a unit of Industries Qatar

  
A view shows the Qatar Petroleum headquarters, which is under construction, in Doha February 21, 2013. REUTERS/Fadi Al-Assaad

A view shows the Qatar Petroleum headquarters, which is under construction, in Doha February 21, 2013. REUTERS/Fadi Al-Assaad

REUTERS/Fadi Al-Assaad

KHOBAR, Saudi Arabia, Feb 26 (Reuters) - Qatar Petrochemical Company (QAPCO) will operate the activities of Qatar Vinyl Company (QVC) through a service agreement by the end of the year, Qatar Petroleum (QP) said on Sunday.

QVC is part of Mesaieed Petrochemical and QAPCO is a unit of Industries Qatar.

QP, the parent company of Mesaieed Petrochemical and Industries Qatar, said the process would start next month.

"The integration will not result in any change to the shareholder ownership," QP said, adding that a single entity would be created to operate the assets on behalf of both companies' shareholders.

"The integration will reduce operating costs and enhance the profitability of both companies," the statement quoted QP CEO Saad Sherida Al-Kaabi as saying.

State-owned QP said last year it would cede control of parts of the industrial city of Mesaieed in 2017.

(Reporting by Reem Shamseddine; editing by Jason Neely) ((Reem.Shamseddine@thomsonreuters.com; +966503335202; Reuters Messaging: reem.shamseddine.thomsonreuters.com@reuters.net))

Keywords: QATAR PETROCHEMICALS/

More From Energy