SABIC, China’s Sinopec sign cooperation deal

Saudi Basic Industries Corporation (SABIC) and the Chinese oil and gas company, Sinopec, signed a strategic agreement on Thursday to study opportunities for joint projects in Saudi Arabia and China, SABIC said in an emailed statement.

Under the agreement, the companies are planning--for the first time--to study a joint venture with Chinese investment in Saudi Arabia. The agreement also seeks to explore opportunities for further investments at the existing joint venture SINOPEC SABIC Tianjin Petrochemical Co. (SSTPC).

The studies will cover joint venture petrochemical projects in China and Saudi Arabia, which target downstream key markets, such as automotive, electronics, lighting, and building and construction, packaging, and medical equipment.

The agreement was signed by Prince Saud bin Abdullah Al-Saud, president of the Royal Commission for Jubail and Yanbu and chairman of SABIC, and Wang Yupu, chairman of Sinopec. The agreement supports Saudi Vision 2030 and China’s Silk Road Economic Belt initiative, the statement added.

Saudi King Salman is currently on a visit to Beijing as part of his Asia tour to strengthen mutual relations and attract more investments to the world’s largest oil exporter.