Manama, March 27 (BNA): Aramco has signed definitive agreements to acquire a 10% stake in Shenzhen-listed Rongsheng Petrochemical Company Limited (“Rongsheng”) for 24.6 billion Chinese yuan ($3.6 billion at current exchange rates), in a manner that It significantly expands its downstream presence in China.
Through the strategic arrangement, Aramco will supply 480,000 barrels per day of Arab crude oil to Zhejiang Petroleum and Chemical Co. Ltd subsidiary of Rongsheng, under a long-term sales agreement.
Aramco Overseas Company (“AOC”), a wholly owned subsidiary of Aramco, will acquire a stake in Rongsheng, SPA reports.
Among other assets, Rongsheng owns a 51% stake in ZPC, which in turn owns and operates the largest integrated refining and chemicals complex in China with the capacity to process 800,000 barrels per day of crude oil and produce 4.2 million metric tons of ethylene annually. .
The investment would solidify an important relationship between Aramco, Rongsheng and ZBC, which operates one of the world’s most modern chemical conversion assets.
The transaction includes a secondary off-market sale of Rongsheng shares by majority shareholder Zhejiang Rongsheng Holding Group, with the possibility of future cooperation between the two parties in trading, refining, chemical production and technology licensing. The transaction is expected to close by the end of 2023, subject to regulatory approvals.
This follows the March 26 announcement that Aramco’s joint venture, Huajin Aramco Petrochemical Company (HAPCO), intends to begin construction of a major integrated refinery and petrochemical complex in northeastern China in the second quarter of 2023.
Aramco, which owns a 30% stake in HAPCO, will supply up to 210,000 barrels per day of crude oil to the complex.
Combined, the partnership with Rongsheng and the HAPCO joint venture will see Aramco supply a total of 690,000 barrels per day of crude to high chemical conversion assets.
insignificant