The world’s integrated energy and chemicals company Aramco announced the successful closing of a key transaction to acquire a 10% interest in Petrochemical company Rongsheng through its subsidiary Aramco Overseas Company BV, based in the Netherlands.
The step was taken after a primary signing of a strategic agreement between Aramco and Rongsheng last March.
The partnership will help Aramco grow its presence in China and provide a supply of 480,000 barrels per day of Arabian crude to the largest Chinese integrated refining and chemicals complex, owned by Zhejiang Petroleum and Chemical (ZPC).
Rongsheng is owning a 51% equity interest in ZPC.
The ZPC 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.
Mohammed Y Al Qahtani, Aramco Downstream President, said: “This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market.”
Li Shuirong, Chairman of Rongsheng, said: “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.”
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