Saudi Aramco signs cooperation agreement with China's Rongsheng

Logo of Saudi Aramco

Saudi Aramco signed a framework cooperation agreement with China’s Rongsheng Petrochemical Co. Ltd., to acquire 50% of Rongsheng’s Ningbo Zhongjin Petrochemical unit, and Rongsheng Petrochemical to acquire 50% of Saudi Aramco Jubail Refinery Co. (SASREF). 

According to a statement by Rongsheng, Saudi Aramco will participate in the expansion projects of the Ningbo Zhongjin Petrochemical unit, while Rongsheng will participate in the expansion projects of SASREF Refinery.

The agreement is expected to contribute to supporting cooperation between Saudi Aramco and Rongsheng, in the industrial chain of the downstream and upstream sectors, as well as achieving the strategic goals of both parties.

According to data available on Argaam, Rongsheng signed a memorandum of understanding (MoU) with Saudi Aramco to acquire 50% of Saudi Aramco Jubail Refinery Co. (SASREF). In addition, the two parties discussed Aramco’s potential acquisition of up to 50% of Rongsheng’s Ningbo Zhongjin Petrochemical unit.

Aramco announced, in July 2023, closing a landmark transaction to acquire a 10% interest in Rongsheng Petrochemical for RMB 24.6 billion ($3.4 billion), through its subsidiary Aramco Overseas Company BV.