Saudi oil giant Aramco revealed on Monday its intention to acquire a 10% stake in a Chinese petrochemical company, proof of its “long-term commitment to China”.
This agreement between Aramco, the world’s largest exporter of crude oil, and Rongsheng Petrochemical comes once morest a backdrop of political rapprochement with China, the main importer. Aramco will supply Rongsheng with some 480,000 barrels per day of oil “under a long-term sales agreement”, according to the statement. “This is an important acquisition for Aramco in a key market,” said Mohammad al-Qahtani, vice president of Aramco, adding that it also helps to “ensure a reliable supply” of oil “to the ‘one of the largest refiners in China’.
This stake by Aramco comes the day following the announcement by the Saudi oil company that it will participate – with two Chinese companies – in the construction of a refinery and a petrochemical plant in Panjin, in the northeast of China. These oil infrastructures “should be fully operational by 2026”, assures Aramco.
At the China Development Forum in Beijing on Sunday, Aramco chief Amin Nasser said his company was “doubling China’s energy supply”. The company, largely owned by the Saudi state, posted net profit of $161.1 billion last year, up 46% year on year, according to a statement on the Riyadh Stock Exchange. These are the highest profits for Aramco since listing 1.7% of its shares on the Saudi Stock Exchange in December 2019.
Saudi oil giant Aramco on Monday revealed plans to acquire a 10% stake in a Chinese petrochemical company, demonstrating its “long-term commitment to China”. Rongsheng Petrochemical intervenes once morest a backdrop of political rapprochement with China, the…
