Petroecuador (Ecuador) and Sinopec (China) Oil Joint Venture
Petroecuador and Sinopec agreed to create a Joint Venture that was supposed to be a big opportunity for both, the Latin American and the Asian country. These two companies are different in many ways, especially in the size of their profitability and technology development.
Sinopec International Petroleum belongs to Sinopec Corp., which is one of the largest integrated energy and chemical companies in China. It business mainly covers oil and gas activities. It is China's largest producer and supplier of refined oil products by annual volume processed and major petrochemical products and its second largest crude oil producer, following Petrochina. In 2007 it was ranked in the Top 500 Enterprises of China and in 2009, it was ranked in the 9th place in Fortune Global 500 and in 2010 in the 7th place (first Chinese corporation to place itself in the top ten). Sinopec reported in the first half of 2010 increased profits of 6.7% (35.46 billion yuan).
Petroecuador is the national oil company of Ecuador. This state-owned company operates three different divisions. The first is for exploration and extraction, the second is for refinery operations and the last one is for transportation and marketing of the refined products to the internal market of the country. It owns three large refineries in Esmeraldas, La Libertad and Shushufindi, each with a capacity of 110,000 bpd, 45,000 bpd and 20,000 bpd respectively. The production of Petroecuador ended in 2010 with a growth rate of 2.4%.
We can see by the difference of the growth rates, that Siponec has the power in the economic aspect. China is one of the biggest economies in the world nowadays and if Siponec y is one of the most important oil companies, that demonstrates that there’s no equity in power.
The goals of these countries are similar and different en many ways. To start, Ecuador is in the search of foreign investment and with this joint...
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