As it increases its footprint in China, Saudi energy company Aramco intends to invest more in Rongsheng Petrochemical, a partner.
Aramco and Rongsheng Petrochemical are negotiating for Aramco to buy up to 50% of the Chinese company’s subsidiary, Ningbo Chongjin Petrochemical.
Additionally, Rongsheng Petrochemical is thinking about acquiring a 50% share in Saudi Aramco Jubail Refinery Company, the Saudi company’s refining division.
Additionally, the businesses might work together to create the gigantic Rongsheng New Materials (Zhoushan) project, which will generate high-performance petrochemicals for semiconductors and electronic devices, as well as modernize and expand the equipment of the Chinese subsidiary.
Since last year, Saudi Arabia and China have developed closer connections.
In March, Aramco agreed to pay 24.6 billion yuan ($3.5 billion) to acquire a 10% interest in Rongsheng.
China has also made an effort to strengthen its position in the Middle East country, Sinopec, the massive state-owned refining company, is in charge of a refinery project located in Yanbu Industrial City, Saudi Arabia.
The CEO of the city, John Lee, discussed the possibility of a secondary listing in Hong Kong with the CEO of Aramco at a meeting in February, 2023.
