Aramco announces new agreements with China’s Rongsheng, Hengli

11/09/2024 Argaam
Logo ofSaudi Arabian Oil Co. (Saudi Aramco)

Logo of Saudi Arabian Oil Co. (Saudi Aramco)


Saudi Aramco announced agreements with key Chinese partners Rongsheng and Hengli to reinforce Aramco’s ongoing contribution to China’s long-term energy security and development, support China’s participation in Saudi Arabia’s economic growth, and foster collaboration in new technology development.

 

In an emailed statement to Argaam today, Sept. 11, Aramco said the agreements include preliminary documentation relating to a Development Framework Agreement with Rongsheng Petrochemical Co. Ltd. (Rongsheng) and a Strategic Cooperation Agreement with Hengli Group Co., Ltd.

 

For more news and details on M&As

 

The preliminary documentation relating to a Development Framework Agreement with Rongsheng is connected to the potential joint development of an expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities. It follows an announcement in April that Aramco and Rongsheng had signed a Cooperation Framework Agreement relating to the planned formation of a joint venture in Saudi Aramco Shell Refinery Co. (SASREF), as well as significant investments in the Saudi and Chinese petrochemical sectors.

 

The deal includes Rongsheng’s potential acquisition of a 50% stake in SASREF, the development of a liquids-to-chemicals expansion project at SASREF, Aramco’s potential acquisition of a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC), and participation in ZJPC’s expansion project.

 

The agreement with Hengli Group Co., Ltd. advances talks relating to Aramco’s potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd., subject to due diligence and required regulatory clearances, Aramco added.

 

In April, Aramco signed a memorandum of understanding (MoU) regarding the proposed transaction, Argaam earlier reported.

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