Aramco said on Friday it has acquired a $3.4 billion stake in Rongsheng Petrochemical through its subsidiary Aramco Overseas Co. based in the Netherlands.
The acquisition follows the signing of definitive strategic agreements by both parties announced on March 27. The acquisition builds on Aramco’s efforts to grow its downstream presence in China, Aramco said in a news release.
“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,” said Mohammed Y. Al Qahtani, Aramco’s downstream president. “This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market.”
As part of the agreement, Aramco will supply 480,000 barrels per day of Arabian crude to the largest Chinese integrated refining and chemicals complex, which is owned by Rongsheng affiliate Zhejiang Petroleum and Chemical Co.(ZPC).
Rongsheng owns a 51% equity interest in ZPC, whose complex has the capacity to process 800,000 barrels per day of crude oil and to produce 4.2 million metric tons of ethylene per year.
