Saudi Aramco to acquire 10% stake in Chinese petrochemical company Rongsheng Petrochemical

The transaction amount amounted to 3.6 billion US dollars (24.6 billion yuan).

Saudi Aramco has signed an agreement to acquire a 10% stake in the petrochemical company Rongsheng Petrochemical Co from China. This is stated in a message published on March 27 on the Saudi Aramco website. The transaction amount amounted to 3.6 billion US dollars (24.6 billion yuan).

It is expected to be closed by the end of 2023, after approval by all regulatory authorities. In addition, the agreement assumes that Saudi Aramco will supply to the subsidiary of Rongsheng – Zhejiang Petroleum and Chemical Co. Ltd (ZPC) – 480 thousand barrels/day of Arabian oil.

Earlier it was reported that the joint venture of Saudi Aramco (30%), Norinco Group (51%) and Panjin Xincheng Industrial Group (19%) – Huajin Aramco Petrochemical Company (HAPCO) – will build a petrochemical complex with a production capacity of 1.65 million tons/year of ethylene and 2 million tons/year in the Chinese city of Panjin by 2026 the year of paraxylene. The partnership with Rongsheng and HAPCO will allow Aramco to supply a total of 690 thousand barrels/day of oil to assets with high chemical conversion.