Through this partnership, Aramco will, according to a statement issued on Monday, supply 480,000 barrels per day of oil to Zhejiang Oil and Petrochemical Co., Ltd., a subsidiary of Rongsheng Corporation.
Saudi Aramco has signed an agreement to acquire a 10 percent stake in China’s Rongsheng Petrochemical Company in a deal worth $3.6 billion, which will contribute to strengthening the Saudi oil giant’s position in China.
Through this partnership, Aramco will, according to a statement issued on Monday, supply 480,000 barrels per day of oil to Zhejiang Oil and Petrochemical Co., Ltd., a subsidiary of Rongsheng.
Aramco said in the statement, “The deal will significantly further expand its presence in the refining, chemicals and marketing business in China.”
The deal comes to increase Saudi-Chinese ties after the recent agreement between Tehran and Iran to resume diplomatic relations, which was sponsored by China.
“This announcement confirms Saudi Aramco’s long-term commitment to China and its belief in the strength of the Chinese petrochemical sector,” said Mohammed Yahya Al-Qahtani, Executive Vice President, Refining, Chemicals and Marketing at Aramco.
He continued, “It is an important acquisition for the company in a major market that reinforces our ambitions for growth and moving forward towards the strategy of converting liquids to chemicals. It also contributes to securing reliable supplies of crude oil to one of the most important refineries in China.”
This follows Sunday’s announcement that Saudi Aramco’s joint venture “Aramco Huajin” intends to start construction work on a huge integrated refinery and petrochemicals complex in northeastern China in the second quarter of 2023. Saudi Aramco, which owns 30% of Aramco Huajin, will supply what Up to 210 thousand barrels per day of crude oil to the complex.
Through this partnership with Rongsheng and the Aramco Huajin joint venture, Saudi Aramco will supply a total of 690,000 barrels per day of crude oil to higher chemical conversion facilities.
