Saudi Arabia’s Aramco Purchases $3.4B Stake in China’s Rongsheng
The integrated energy and chemicals company is seeking to expand its reach in China.
Saudi energy and chemicals company Aramco announced the closing of a deal to acquire a 10% interest in petrochemical company Rongsheng through its subsidiary Aramco Overseas Company BV, which is based in the Netherlands.
The deal was finalised following the signing of a strategic agreement between the two companies in March 2023.
“This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market,” Mohammed Y Al Qahtan, Aramco Downstream President, tells StartupScene.
The partnership aims to propel Aramco’s presence in China, and provide a supply of 480,000 barrels per day of Arabian crude oil to China’s largest integrated refining and chemicals complex, owned by Zhejiang Petroleum and Chemical (ZPC), of which Rongsheng owns a 51% equity stake.
“The completion of this transaction marks the entry of Rongsheng and Aramco into a new era together, and also signifies an important step forward in Rongsheng’s internationalisation strategy,” Li Shuirong, Chairman of Rongsheng, says.
The ZPC is equipped to process 800,000 barrels per day of Arabian crude oil, and is able to produce 4.2 million metric tonnes of ethylene per annum.
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