Aramco buys 10% stake in China's Rongsheng

Logo of Saudi Aramco

Saudi Aramco announced today, July 21, successfully closed a landmark transaction to acquire a 10% interest in China’s Rongsheng Petrochemical Co. Ltd. for RMB 24.6 billion ($3.4 billion), through its subsidiary Aramco Overseas Company BV, based in the Netherlands.

In an emailed statement to Argaam, Aramco said the acquisition follows the signing of definitive strategic agreements by both parties announced on March 27, 2023.

The deal represents the continued growth of Aramco’s downstream presence in China and includes the supply of 480,000 barrels per day of Arabian crude to the largest Chinese integrated refining and chemicals complex, which is owned by Rongsheng affiliate Zhejiang Petroleum and Chemical Co. Ltd (ZPC).

“Our strategic partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil,” said Mohammed Al Qahtani, Aramco Downstream President.

This acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market, he added.

In March, the world’s largest oil exporter signed definitive agreements to buy 10% of Rongsheng for $3.4 billion through its wholly-owned subsidiary, Aramco Overseas Co.