2023-07-21 09:03:00
The deal includes the acquisition of a 10% stake.
Dubai – Al Arabiya.net
Posted on: July 21, 2023: 01:03 PM GST Last updated: July 21, 2023: 01:27 PM GST
Saudi Aramco, a leading global integrated energy and chemicals company, today completed a transaction to acquire a 10% stake in Rongsheng Petrochemical Company for CNY 24.6 billion ($3.4 billion) through its wholly-owned subsidiary, Aramco Overseas.
The acquisition follows the signing of strategic agreements between Saudi Aramco and Rongsheng Petrochemical Company, which were announced on March 27, 2023.
The deal will contribute to the continued growth of Saudi Aramco and expand its presence in the refining, chemicals and marketing business in China. The deal includes the supply of 480,000 barrels per day of Arab crude to the largest integrated refining and chemicals complex in China owned by Zhejiang Oil and Petrochemical Co., Ltd., a subsidiary of Rongsheng Company, according to the Saudi Press Agency, “SPA”.
Mohammed bin Yahya Al-Qahtani, President of Refining, Chemicals and Marketing at Saudi Aramco, confirmed: “This partnership with Rongsheng contributes to strengthening Saudi Aramco’s strategy aimed at converting liquids into chemicals, strengthening Aramco’s presence in China, and highlighting its role as a reliable supplier of crude oil. The acquisition represents an important part of Saudi Aramco’s long-term growth strategy and expansion of its presence in vital markets.”
For his part, Chairman of the Board of Directors of Rongsheng Group, Li Shuirong, said: “The completion of this transaction marks the entry into a new era for both Rongsheng and Saudi Aramco, and also indicates an important step in the future strategy of Rongsheng at the international level.”
Rongsheng has a 51% stake in Zhejiang, which owns and operates the complex, which has a processing capacity of 800,000 barrels per day of crude oil and produces 4.2 million metric tons of ethylene annually.
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