Saudi Aramco's unit, Sinopec ink $4B JV deal

Logo of Saudi Arabian Oil Co. (Saudi Aramco)

Saudi Aramco's Singapore-based unit, Aramco Asia Singapore Pte. Ltd. (AAS), signed an agreement with China Petroleum & Chemical Corp. (Sinopec) and its unit Fujian Petroleum Chemical Company Ltd. (FPCL) to establish a joint venture (JV) company with a registered capital of $3.95 billion, Reuters reported.

Sinopec and its unit shall contribute $990 million and $1.98 billion in cash, respectively.

AAS will allocate the remaining amount, representing 25% of the JV’s registered capital.

The JV, named Fujian Sinopec Aramco Refining & Petrochemical Co., will engage in port operation, crude oil transportation, and other activities at the refinery and petrochemical complex in Gulei Port Economic Development Zone, located in Fujian Province’s Zhangzhou, China.

According to Argaam's data, in November 2024, Saudi Aramco, Sinopec, and FPCL broke ground on a new integrated refining and petrochemical complex in Gulei, Fujian Province, China.