Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) signed agreements with key Chinese partners to bolster its ongoing contribution to the Republic’s long-term energy security and development.
The deals were announced during a visit by a senior delegation led by Chinese Premier Li Qiang to Saudi Arabia, according to a press release.
Meanwhile, the joint agreements back China’s participation in the Kingdom’s economic growth and reinforce collaboration in new technology development.
JV with Rongsheng
The oil giant announced preliminary documentation relating to a development framework agreement with Rongsheng Petrochemical Company Limited to expand Saudi Aramco Jubail Refinery Company (SASREF) facilities.
This follows Aramco and Rongsheng’s cooperation framework agreement, signed in April, to develop a joint venture (JV) in SASREF.
Rongsheng is expected to acquire a 50% stake in SASREF, while Aramco will have a 50% shareholding in the China-based group’s affiliate Ningbo Zhongjin Petrochemical Company Limited (ZJPC).
Under this deal, the Tadawul-listed firm is set to participate in ZJPC’s expansion project.
Acquisition Deal with Hengli
In line with its memorandum of understanding (MoU) with Hengli Group Company Limited in April, Aramco seeks a 10% stake in Hengli Petrochemical Company Limited.
The strategic cooperation agreement is still subject to due diligence and required regulatory clearances.
Mohammed Al Qahtani, Aramco Downstream President, said: “China is an important country in our global downstream growth strategy, and we look forward to building on a relationship that spans more than three decades to unlock new opportunities in this crucial market.”
“These agreements reflect our collective intention to elevate our relationships in vital sectors to advance our downstream objectives, contribute to both China’s and Saudi Arabia’s vibrant energy and petrochemicals sectors, and help develop future technology solutions,” Al Qahtani indicated.
Last July, Aramco unveiled two contract awards exceeding a value of $3.30 billion to JV formed by the Spanish company Técnicas Reunidas and the Chinese Sinopec Engineering Group.
