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Saudi Aramco Strengthens its Bond With China

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Saudi Aramco has signed definitive agreements to acquire a 10% stake in Rongsheng Petrochemical Co., Ltd. for 24.6 billion Chinese yuan (3.6 billion US dollars at the current exchange rate).

Aramco said in a statement posted on its website that the deal will significantly expand its presence in China’s refining, chemicals and marketing business.

Aramco said the partnership includes the delivery of 480,000 barrels of Arabic crude oil per day to Zhejiang Oil and Petrochemical Company Limited, a subsidiary of the Rongsheng Company, under a long-term sale agreement.

And it stated that Aramco Overseas Company, a subsidiary of Aramco, would acquire a stake in Rongsheng.

Among other assets, Rongsheng is acquiring a 51% stake in Zhejiang Corporation, which in turn owns and operates China’s largest refining and chemical complex, with a processing capacity of 800,000 barrels of crude oil per day and an annual production of 4.2 million metric tons of ethylene. . .

Commenting on the signing of these agreements, Mohammed Yahya Al-Qahtani, Executive Vice President of Refining, Chemicals and Marketing at Saudi Aramco, said: “This announcement confirms Saudi Aramco’s long-term commitment to China and its belief in the strength of the Chinese petrochemical sector. This is an important acquisition for a company in a key market that strengthens our ambition to grow and move forward.” to one of the most important oil refineries in China.”

Source: RT

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