Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, has successfully closed a landmark transaction to acquire a 10 percent interest in Rongsheng Petrochemical for $3.4 billion, through its subsidiary Aramco Overseas Company BV, based in the Netherlands.
It represents the continued growth of Aramco’s downstream presence in China and includes the supply of 480,000 barrels per day of Arabian crude to the largest Chinese integrated refining and chemicals complex, which is owned by Rongsheng affiliate Zhejiang Petroleum and Chemical (ZPC).
The investment would anchor an important association between Aramco, Rongsheng, and ZPC, which operates one of the world’s most state-of-the-art chemical conversion assets.
Mr. Mohammed Y. Al Qahtani, Aramco Downstream President, said that, “Our strategic partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil. This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market.”
“The completion of this transaction marks the entry of Rongsheng and Aramco into a new era together, and also signifies an important step forward in Rongsheng’s internationalization strategy,” commented Mr. Li Shuirong, Chairman of Rongsheng.
Rongsheng owns a 51 percent equity interest in ZPC, whose complex has the capacity to process 800,000 barrels per day of crude oil and to produce 4.2 million metric tons of ethylene per year.
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