China Welcomes Aramco’s Increased Investments in Beijing

The Chinese Ministry of Commerce announced that the Chinese Assistant Minister of Commerce met with the Deputy CEO of Aramco Saudi Arabia in Beijing on Thursday.

Assistant Minister of Commerce, Tang Yin Hong, informed Yasser Mufeed, the Executive Vice President of Business Sector and Customers at “Saudi Aramco” in Saudi Arabia, that the company is welcome to increase its investments in China.

The two countries have deepened their economic relations in recent months. Recently, the Chinese refining company, privately owned by “Rongsheng” Petrochemicals, mentioned that they are considering selling up to a 50% share of their unit “Ningbo Zhongjin” Petrochemicals to “Aramco”.

Last March, Aramco announced that it had signed final agreements to acquire a 10 percent stake in Rongsheng Petrochemicals Limited, a company listed on the Shanghai Stock Exchange, for 24.6 billion Chinese yuan (3.6 billion dollars). This deal will significantly contribute to expanding its presence in refining, chemicals, and marketing operations in China.

Through this strategic partnership, Saudi Aramco will supply 480,000 barrels per day of Arabian crude oil to the Guizhou Province-based company, Sinopec, under a long-term sales agreement. Furthermore, Aramco Overseas Company, a fully owned subsidiary of Saudi Aramco, has acquired a stake in Sinopec.