Skip to content Skip to Search
Skip navigation

Aramco buys 10% of Chinese petrochemical firm for $3.6bn

Aramco
Aramco president & CEO Amin Nasser (centre) attends the signing ceremony for Aramco’s acquisition of a 10% interest in Rongsheng Petrochemical

Saudi Aramco has signed definitive agreements to acquire a 10 percent interest in Shenzhen-listed Rongsheng Petrochemical Co. Ltd. (Rongsheng) for $3.6 billion.

Aramco Overseas Company (AOC), a wholly-owned subsidiary of Aramco, will acquire the interest in Rongsheng, the Saudi oil producer said in a statement.

The deal seeks to expand the oil major’s downstream presence in China.

Aramco will supply 480,000 barrels per day (bpd) of Arabian crude oil to Rongsheng affiliate Zhejiang Petroleum and Chemical Co. Ltd (ZPC) under a long-term sales agreement.

Rongsheng owns a 51 percent equity in ZPC, which operates the largest integrated refining and chemicals complex in China with a capacity to process 800,000 bpd of crude oil and produce 4.2 million metric tons of ethylene per year.

Aramco executive vice president of downstream Mohammed Y. Al Qahtani said: “It is an important acquisition for Aramco in a key market, supporting our growth ambitions and advancing our liquids to chemicals strategy.”

The transaction involves an off-market secondary sale of Rongsheng shares by majority shareholder Zhejiang Rongsheng Holding Group, with potential for future collaboration between the parties in trading, refining, chemicals production and technology licensing.

The transaction is expected to close by the end of 2023, subject to regulatory approvals.

Last week, Aramco’s joint venture, Huajin Aramco Petrochemical Company (HAPCO), announced plans to start the construction of a $10 billion integrated refinery and petrochemical complex in northeast China in the second quarter of 2023.

Aramco will supply 690,000 bpd of crude to high chemical conversion assets through its partnership with Rongsheng and HAPCO.

Latest articles

Mubadala injects $250m to revive Turkey’s Getir

Abu Dhabi’s Mubadala Investment Company will invest $250 million in Turkish grocery delivery startup Getir as part of a restructuring programme that will split it into two standalone units. The first standalone business will focus on domestic online groceries and food delivery services, with Mubadala, an existing shareholder, holding the management and majority stake, Reuters […]

Machine, Architecture, Building

Arabian Mills gets nod to sell 30% stake on Saudi bourse 

Arabian Mills for Food Products will list 15.4 million shares, or a 30 percent stake, on the Saudi stock exchange, the kingdom’s market regulator has said. The Capital Markets Authority (CMA) approved the company’s public floatation application on Monday, adding that the prospectus will be published before the subscription start date. No other details of […]

Properties overlooking the bay in Muscat. Property prices in the capital fell more than 5 percent

Oman’s real estate sector continues to slide

Apartment prices in Oman dropped more than 17 percent in the first quarter of 2024, while villa prices rose a meagre 0.8 percent, according to the latest government figures. Residential real estate prices were down across the board quarter on quarter, including those for land. The Musandam region recorded the largest overall decline at 15.7 […]

Shoppers choose vegetables in Istanbul; inflation means people are spending on essentials

Turkish retailers’ confidence wavers as inflation bites

Confidence is falling among Turkish retailers, according to a survey from the country’s statistics agency Turkstat. Shoppers have been scaling back on big-ticket purchases, spending instead on basic consumer goods as inflation piles pressure on household incomes. May’s business confidence report, released by Turkstat on June 24, showed sentiment in the retail sector at its […]