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Aramco signs fresh agreements with two Chinese companies: State-owned oil giant Aramco signed two separate agreements with Chinese refineries Rongsheng Petrochemical and Hengli Group, according to a press release. The agreements bring Aramco closer to expanding the Saudi Aramco Jubail Refinery with Rongsheng, and the acquisition of a 10% stake in Hengli Petrochemical. Aramco is positioning the agreements as boosting its presence in the Asian downstream market.
Aramco inked a development framework agreement with Rongsheng, expanding on a cooperation framework signed in April. This agreement brings the pair closer to “the potential joint development of an expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities,” the statement notes.
Not Aramco’s first rodeo with Rongsheng: Aramco closed last year the acquisition of a 10% stake in Rongsheng Petrochemical for USD 3.4 bn through its Netherlands-based subsidiary, Aramco Overseas Company.
Aramco also inked a strategic cooperation agreement with Hengli Group, moving it closer to locking down a 10% stake in Hengli Petrochemical. This is a follow-up on an MoU that the pair had signed earlier in March, with the transaction now pending the usual due diligence and regulatory green lights. Hengli’s petrochemical empire includes a 400k bpd refinery, with the firm’s market value in April valuing a 10% stake at up to USD 1.5 bn.
There’s still a lot we don’t know: Aramco’s statement did not disclose further details on investment tickets or project timelines.
What they said: “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,” Aramco’s Downstream President Mohammed Al Qahtani said.
