The signing ceremony between the two companies was presided over by the leaders of the two nations, Prime Minister Thaksin Shinawatra of Thailand and Chinese President Hu Jintao.
Under the terms of the agreement, all oil and gas exploration, production and transportation, natural gas exploitation, trading and marketing, and other petroleum-related business activities - where the two firms could cooperate - would be studied by a joint cooperation committee to seek out if those projects warranted a joint-venture between PTT and Sinochem.
One of the projects, which the committee could look into, would be the energy landbridge project that PTT was planning to build. This is an oil pipeline and depot project that will link the Andaman shore in Phangnga province to the Gulf of Thailand shore in Nakhon Si Thammarat province.
In related news, Sinochem is expected to buy a 37% stake in ThaiOil from the company's foreign creditors. The details of the deal remain to be finalised.
