Daily Management Review

Saudi Aramco to expand presence in China


According to a press statement from Saudi Aramco, the country's national oil and gas company, the deal of purchasing a 10% stake in the Chinese Rongsheng Petrochemical will cost $3.6 billion and will see Saudi Aramco greatly increase its presence in the local petroleum products.

According to the firm, "Aramco... has signed definitive agreements to acquire a 10% stake in Shenzhen-based Rongsheng Petrochemical Co. Ltd. ("Rongsheng") for 24.6 billion yuan ($3.6 billion). This will greatly increase the company's downstream presence in China."

Aramco will also provide 480,000 barrels of oil per day to Zhejiang Petroleum and Chemical Co, a division of Rongsheng, as part of the long-term deal.

The deal is scheduled to close before the year's conclusion and is pending approval from the appropriate regulators.

source: bloomberg.com