SINOPEC Corp. is planning to jointly operate 300 of its convenience stores with Taiwan’s Ruentex Group, a move that is likely to enhance the appeal of its massive fuel retail unit in which it is planning to offload a minority stake.

    The State-run oil giant has shortlisted 37 bidding consortia for a holding of up to 30 percent that could raise as much as US$20 billion. It is expected to choose a winning bidder by end-September.

    Sinopec and Ruentex have already started jointly managing eight stores in Shanghai and daily revenue at the stores rose nearly 50 percent during a trial operation in August, China Securities Journal reported, quoting an unidentified source from Sinopec.

    Under a pact signed earlier this year, the two firms will cooperate on merchandise procurement to cut costs. They are also looking into potential e-commerce cooperation.

    Sinopec, which has more than 30,000 petrol stations, operates over 23,000 convenience stores under the Easy Joy brand. Ruentex operates about 600 convenience stores under the C-Store brand in China.

    The report did not mention a timeframe for the cooperation in managing the 300 stores. Representatives for Sinopec were not immediately available for comment.

    Sinopec will also team up with Fosun Pharma to launch a 24-hour service selling over-the-counter medicine and magazines soon, the paper said.

    Unlike in Western markets, where non-fuel businesses — convenience stores and services like fast food or car washing — can account for more than half of a fuel station’s profits, more than 99 percent of Sinopec’s retail sales come from petrol.(SD-Agencies)