2009 Media Release

This is a joint release by Shaanxi Yanchang Petroleum (Group) Co. Ltd, Shaanxi Tianli Investment Company Limited and Shell (China) Limited

Xi’an, 12 October, 2009: Shaanxi Yanchang and Shell Petroleum Company Limited, a joint venture between Shaanxi Yanchang Petroleum (Group) Co. Ltd (Yanchang Petroleum Group), Shaanxi Tianli Investment Company Limited (Shaanxi Tianli) and Shell (China) Limited (Shell), opened today its tenth gas station in Xi’an, Shaanxi Province.  It plans to build and operate around 100 gas stations in the province. 

The three parties signed a joint venture contract in June 2008 and obtained government approval with a license to operate at the end of the year.  Yanchang Petroleum Group has a 46% shareholding, Shaanxi Tianli 9% and Shell 45%.

All gas stations under the joint venture will adopt Shell’s Health, Safety, Security and Environment (HSSE) management system as well as standard customer service process.

Shen Hao, Chairman of Yanchang Petroleum Group, said: “We are very pleased to work with Shell in the joint venture. This cooperation is mutually beneficial.  It allows us to distribute products of both Yangchang and Shell while benefiting from the management expertise and service standards of Shell.”

Lim Haw Kuang, Executive Chairman of Shell Companies in China, said: “We value our partnership with Yanchang Petroleum Group and feel very pleased about the smooth operation of the joint venture. We are looking forward to providing Shaanxi customers with quality oil products and services.”

For inquiries, please contact:

Yanchang Petroleum Group

Bai Dong

Tel: 029-88899431;  13709210096  

Email: ycsy-xc@163.com    

Shell Companies in China
Li Lusha 
Tel: 010-65054501 ext. 2685
Email: lusha.li@Shell.com

Notes to Editors

Shaanxi Yanchang Petroleum (Group) Co. Ltd is one of four state owned enterprises in China entitled to oil and gas exploration and production.  It is subsidiary to the Shaanxi Provincial Government.  Core businesses include oil and gas exploration, production, processing, pipeline transport, marketing as well as petrochemicals.  It is also involved in coal chemicals, machinery, engineering and technology research and development.  Established in 1905, it was restructured in 1998 and 2005. By 2007, it had developed a 10-million-ton oilfield.  It now ranks 87 among the 500 top companies in China. In 2008, its sales revenue exceeded RMB60 billion (about $8.8 billion).

Shaanxi Tianli Investment Company Limited is a wholly owned subsidiary of Kingswood, a Shaanxi company group. Its businesses include project investment, project financing and capital management.

Shell (China) Limited is a company of Shell in China.  Shell has more than 30 wholly owned or joint venture companies in China employing some 8,000 staff, about 98% of whom are citizens of the People’s Republic of China. All Shell’s core businesses are in China across a portfolio of upstream, mid-stream and downstream, including Exploration and Production, Gas and Power, Oil Products, Chemicals as well as Clean Coal.