As it increases its presence in China, the world’s biggest integrated oil and gas corporation, Aramco, a Saudi energy powerhouse, intends to increase its investment in the Chinese partner.
In a report to the Shenzhen Stock Exchange on Wednesday, Aramco claimed that it is in discussions with Rongsheng Petrochemical to purchase up to 50% of the latter’s subsidiary, Ningbo Chongjin Petrochemical.
Citing a memorandum of understanding the two parties had signed the day before, Rongsheng, a privately held refiner with headquarters in Hangzhou, stated that it is also considering the prospect of acquiring a 50% share in Saudi Aramco Jubail Refinery Company, the Saudi company’s refining subsidiary.
According to Rongsheng, the businesses might also work together to develop the enormous Rongsheng New Materials (Zhoushan) project and to improve and expand the equipment of the Chinese subsidiary.
According to the statement, the project will produce high-performance petrochemicals that may be utilized in semiconductors and electronic devices, such as engineering plastics, unique polyesters, and premium resins.
Since last year, Saudi Arabia’s energy links with China have grown dramatically.
Aramco agreed to pay 24.6 billion yuan ($3.5 billion) in March to acquire a 10% share in Rongsheng. It agreed to provide the Chinese business with 480,000 barrels of crude oil per day as part of the agreement.
China has also made an effort to increase its influence in that Middle Eastern nation.
The state-owned refinery behemoth Sinopec and Aramco jointly run a refinery facility in Saudi Arabia’s Yanbu Industrial City. 400,000 barrels of Arabian heavy crude oil are used daily by the Yanbu Aramco Sinopec Refining Company, which has been in business since 2016, to provide premium transportation fuels.
During an investment conference held last month, Hong Kong lavished the Saudi elites with a red carpet treatment. Additionally, according to a government statement, the city’s CEO, John Lee, visited Riyadh in February 2023 and discussed the possibility of a secondary listing in Hong Kong with the CEO of Aramco.
