27 Mar 2023
Aramco to expand presence in China by acquiring 10 percent stake in Rongsheng Petrochemical
On July 21, 2023, Aramco has successfully closed its acquisition of a 10% stake in Rongsheng Petrochemical Co. Ltd for CAN$4.84 billion (US$3.4 billion) via its Netherlands-based subsidiary, Aramco Overseas Company BV. This move follows the strategic agreements announced on March 27, 2023, emphasizing Aramco's commitment to expanding its downstream operations in China. The deal entails Aramco's supply of 480,000 barrels of Arabian crude daily to China's largest integrated refining and chemical complex, owned by Rongsheng's affiliate, Zhejiang Petroleum and Chemical Co. Ltd (ZPC).
Aramco's Downstream President, Mohammed Y. Al Qahtani, highlighted the transaction as a strategic advancement of Aramco's liquids to chemicals strategy and a significant step in solidifying their role as a trusted crude oil supplier in China. Li Shuirong, Rongsheng's Chairman, emphasized the partnership as a milestone in Rongsheng's global strategy. Importantly, Rongsheng holds a 51% stake in ZPC, which boasts the capability to process 800,000 barrels of crude oil daily and produce 4.2 million metric tons of ethylene each year.
