Saudi Aramco, a leading global integrated energy and chemicals company, completed a deal to acquire a 10% stake in Rongsheng Petrochemical Company for CNY 24.6 billion (US$3.4 billion) through its wholly-owned subsidiary, Aramco Overseas, it was reported today.

The acquisition follows the signing of strategic agreements between Saudi Aramco and Rongsheng Petrochemical Company, announced on March 27, 2023. The deal will contribute to the continued growth of Saudi Aramco and expand its presence in the refining, chemicals and marketing business in China. The deal includes the supply of 480,000 barrels per day of Arab crude to the largest integrated refining and chemicals complex in China, owned by Zhejiang Oil and Petrochemical Co., Ltd., a subsidiary of Rongsheng.

On this occasion, the President of Refining, Chemicals and Marketing at Saudi Aramco, Mohammed bin Yahya Al-Qahtani, confirmed that this partnership with Rongsheng contributes to strengthening Saudi Aramco's strategy aimed at converting liquids into chemicals, strengthening Aramco's presence in China, and highlighting its role as a reliable supplier of crude oil. He added that the acquisition represents an integral part of Saudi Aramco's long-term growth strategy and expansion of its presence in vital markets.

For his part, Chairman of the Board of Directors of Rongsheng Group Li Shuirong said: "The completion of this deal marks the entry into a new era for both Rongsheng and Saudi Aramco, and also indicates an important step in the future strategy of Rongsheng on the international level."

Rongsheng has a 51% stake in Zhejiang, which owns and operates the complex, enjoys a processing capacity of 800,000 barrels per day of crude oil and produces 4.2 million metric tons of ethylene annually.

Source: Saudi Press Agency