Saudi Aramco bolsters China investments with $3.6bn refinery deal

Saudi Aramco bolsters China investments with $3.6bn refinery deal

Saudi Aramco, the world’s biggest oil producer, has agreed to acquire a 10 per cent stake in China’s oil refining giant Rongsheng Petrochemical for $3.6bn (SAR784bn), a deal that will significantly expand the state-owned energy giant’s refining presence the country. The oil major said the deal includes the supply of 480,000 bpd of crude oil to Rongsheng-controlled Zhejiang Petroleum and Chemical Company (ZPC) for 20 years. Aramco Overseas Company, a wholly owned subsidiary of Aramco, will acquire an interest in Rongsheng. Mohammed Y. Al Qahtani, Aramco executive vice president of downstream said the transaction is an important acquisition for the company in a key market, “supporting our growth ambitions and advancing our liquids to chemicals strategy.” Rongsheng owns a 51 per cent equity interest in ZPC, which in turn owns and operates the largest integrated refining and chemicals complex in China with a capacity to process 800,000 bpd of crude oil and to produce 4.2 million metric tons of ethylene per year. The deal involves an off-market secondary sale of Rongsheng shares by majority shareholder Zhejiang Rongsheng Holding Group, with the potential for future collaboration between the parties in trading, refining, chemicals production and technology licensing. It is expected to