Aramco to acquire a stake in Rongsheng Petrochemical

Published by Poppy Clements, Assistant Editor
Hydrocarbon Engineering, Monday, 24 July 2023 09:00

Aramco, an integrated energy and chemicals company, has successfully closed a landmark transaction to acquire a 10% interest in Rongsheng for US$3.4 billion, through its subsidiary Aramco Overseas Company BV, based in the Netherlands.

The acquisition follows the signing of definitive strategic agreements by both parties announced on 27 March 2023. It represents the continued growth of Aramco’s downstream presence in China and includes the supply of 480 000 bpd of Arabian crude to the largest Chinese integrated refining and chemicals complex, which is owned by Rongsheng affiliate Zhejiang Petroleum and Chemical Co. Ltd (ZPC).

Mohammed Y. Al Qahtani, Aramco Downstream President, said: “Our strategic partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil. 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 internationalisation strategy.”

Rongsheng owns a 51% equity interest in ZPC, whose complex has the capacity to process 800 000 bpd of crude oil and to produce 4.2 million tpy of ethylene.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/24072023/aramco-to-acquire-a-stake-in-rongsheng-petrochemical/

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