Saudi purchases 10% stake in Rongsheng Petrochemical Co for $3.4 bn

Dhahran, July 21 (BNA): Saudi Aramco acquired a 10 percent stake in Rongsheng Petrochemical Company, a China-based company, for $3.4 billion.

The two companies already signed strategic agreements on March 27, a move that will spur the growth of Aramco’s downstream presence in China.

Under the agreement, Saudi Aramco will export 480,000 barrels per day of Arab crude to China’s largest integrated refining and chemicals complex, owned by Rongsheng’s Zhejiang Petroleum & Chemical Company.

The agreement was concluded through Aramco Overseas Company, a subsidiary of the Saudi company based in the Netherlands.

Rongsheng holds a 51 percent stake in ZPC, whose complex has the capacity to process 800,000 barrels per day of crude oil and produce 4.2 million tons of ethylene annually.

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