Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) is currently in talks with China-based Hengli Group for a potential acquisition of a 10% stake in its controlled subsidiary Hengli Petrochemical Company.
The equity acquisition is still subject to due diligence and required regulatory clearances, yet the Saudi and Chinese companies signed a memorandum of understanding (MoU) on 22 April 2024 regarding the proposed transaction, according to a press release.
Aramco Downstream President, Mohammed Al Qahtani, said: “This MoU supports our efforts to grow our global downstream footprint. We continue to explore new opportunities in important markets, as we seek to progress in our liquids-to-chemicals strategy.”
Aramco stated that the acquisition transaction aligns with the oil giant’s strategy to expand its downstream presence in key high-value markets, in addition to advancing its liquids-to-chemicals programme and securing long-term crude oil supply agreements.
Al Qahtani added: “We look forward to forging new partnerships and are excited by the prospect of expanding our presence in the important Chinese market.”
It is worth noting that Hengli Petrochemical owns and operates a 400,000 barrel-per-day (bpd) refinery and integrated chemicals complex in Liaoning Province in China, as well as other plants and production facilities in Jiangsu and Guangdong provinces.
In 2023, Aramco generated net profits worth SAR 454.76 billion in addition to revenues of SAR 1.65 trillion.
