Chinese China seeks greater control state-owned refineries are discussing the formation of a group to buy oil together, to increase China’s negotiating ability, and to avoid any wars between these organizations.
Talks are currently taking place between companies: China Petroleum, Kimcal Corp, Petro China, Konk and Sinochem at an advanced level to reduce differences and announce a detailed plan, according to Bloomberg’s informed sources, and these sources have hidden their identity because the talks are ongoing. The agreement garnered support from China’s central government and from industry regulators.
China seeks greater control
First, the group is preparing to offer purchase prices for the types of crude oil from Russia and Africa on the spot market (physical or physical). It is not yet clear how these entities will cooperate in the future, as the group represents refineries that import 5 million barrels per day of oil. What they consume is nearly a fifth of what OPEC produces, becoming the largest buyer of oil in the world, in theory. And that initiative has had its roots since 2019, and talk has increased about it in the light of the Coronavirus, and historical cuts from OPEC + aimed at controlling the market.
China was the first epicenter of the virus, and consequently, it was the first economy to reopen after the outbreak declined, and China embarked on oil, fuel, and derivatives consumption at very high levels, which drove it to where it was before the start of the crisis. China has stimulated hopes for a quick V-shaped economic recovery in recent months, and domestic refineries have begun to increase purchases of Brazilian and Russian oil on the Fiscal market, pushing prices up.
The combined state-owned refineries may apply for Russian oil trucks, ESPO, starting next month, according to the sources. The group may expand its dealings with non-state oil refineries, which call themselves teapots, according to the sources.
The feasibility study is divided into several different types, including the economic feasibility, as it analyzes all the points of the economic side, the costs of the project, what is the return from that project, and the most important required and unavailable resources, which gives you an integrated graph of the economic situation of the project that you wish to implement on the ground Which reduces the percentage of risks that are likely to be exposed, so we will get acquainted with an economic feasibility study.