Saudi oil giant Aramco announced on Friday that it had finalized the acquisition of a 10% stake in a Chinese petrochemical company, as part of an expansion into the world’s largest crude-importing country.
Aramco strengthens its position in the Chinese oil market with a key acquisition
In March, Aramco revealed its intention to acquire a 10% stake in Rongsheng Petrochemical, worth $3.4 billion. The agreement provides for the supply of 480,000 barrels per day of oil to an integrated refining and chemical complex owned by a subsidiary of Rongsheng.
“Our strategic partnership with Rongsheng advances Aramco’s strategy to transform liquids into chemicals while strengthening our presence in China,” said Aramco Vice President Mohammed Al Qahtani in a statement.
“This key acquisition is an important part of Aramco’s long-term growth strategy, strengthening our presence in a vital market,” he added.
Rongsheng Chairman Li Shuirong said the agreement marked “the entry of Rongsheng and Aramco into a new era, together” and signified “an important step forward in Rongsheng’s internationalization strategy”.
China is Saudi Arabia’s biggest oil customer. Aramco, which is mainly state-owned, had announced record profits of $161.1 billion for 2022.
