Saudi Aramco is in talks to buy 10 percent of Shandong Yulong Petrochemical Company, in a deal that will boost the state oil giant's investments in China, according to a company statement.
Shandong Yulong is building a refining complex capable of processing 400,000 barrels of crude oil per day in Shandong Province, eastern China.
The Saudi group said, in a statement on its website, that Aramco and the Chinese company signed a memorandum of understanding to facilitate discussions regarding a possible acquisition by Saudi Aramco of a ten percent strategic stake in Shandong Yulong Petrochemical Company Limited.
Under the terms of the initial agreement, Aramco will supply Shandong Yulong with crude oil and other raw materials. The Aramco statement stated that the agreement is subject to evaluations, negotiation of the necessary deal documents and approvals.
“We believe this cooperation has the potential to enable all parties to contribute to China’s energy security and development, and help manage the energy transition,” Mohammed Al-Qahtani, President of Aramco Refining, Chemicals and Marketing, said in a company statement.
Aramco said last month that it was looking to acquire 10 percent of Jiangsu Xinghong Petrochemical Company.
Aramco in March boosted its multibillion-dollar investment in China by completing and modernizing a planned joint venture in northeastern China and acquiring an expanded stake in a privately controlled petrochemical group.
