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Saudi Arabia’s Aramco has signed agreements with China’s Rongsheng Petrochemical Ltd and Hengli Group, as both countries aim to increase their cooperation in energy and petrochemical sectors.
The oil giant will partner with Rongsheng Petrochemical to develop the Saudi Aramco Jubail Refinery Company (SASREF) facilities. Aramco will also acquire a 10% stake in Hengli Petrochemical Co Ltd.
This follows a joint venture announcement in April, which includes Rongsheng’s potential 50% acquisition of SASREF and Aramco’s potential acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC), and participation in ZJPC’s expansion project.
Aramco said it had advanced talks with Hengli Group related to its 10% acquisition of Hengli Petrochemical,subject to due diligence and required regulatory clearances, following an MoU signed in April.
Mohammed Y. Al Qahtani, Aramco downstream president, said the agreement reflected collective intention to elevate relationships in vital sectors to advance downstream objectives and contribute to China’s and Saudi Arabia’s energy and petrochemical sectors.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)
