Saudi Aramco has finalized an agreement to purchase a 10 per cent share in Rongsheng Petrochemical Company for £3.4B (CY 24.6B).
Through its wholly-owned subsidiary, Aramco Overseas, Saudi Aramco carried out the acquisition following the signing of strategic agreements between the two companies in March. This move will expectedly bolster the growth of Saudi Aramco and enhance its presence in China’s refining, chemicals, and marketing sectors.
As part of the deal, Saudi Aramco will supply 480,000 barrels per day of Arab crude to Zhejiang Oil and Petrochemical Co., which is Rongsheng’s subsidiary and operates the largest integrated refining and chemicals complex in China.
Mohammed bin Yahya Al-Qahtani, President of Refining, Chemicals, and Marketing at Aramco, affirmed that the partnership with Rongsheng aligns with their strategy to convert liquids into chemicals, strengthen their foothold in China, and reinforce their position as a dependable crude oil supplier. The acquisition is a key component of Saudi Aramco’s long-term growth plan and expansion into crucial markets.
Chairman of the Board of Directors of Rongsheng Group Li Shuirong said: “The completion of this deal 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 on the international level.”
Rongsheng currently holds a 51 per cent stake in Zhejiang, which operates the complex with a processing capacity of 800,000 barrels per day of crude oil and an annual production of 4.2 million metric tons of ethylene.
