Saudi Aramco announced Friday that it has successfully closed a landmark transaction to acquire a 10% interest in China’s Rongsheng Petrochemical Co. Ltd. for RMB24.6 billion ($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 March 27, Aramco said in a statement. It represents the continued growth of Aramco’s downstream presence in China and includes the supply of 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. Ltd (ZPC), the statement added.
“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,” said Aramco Downstream President Mohammed Al Qahtani.
As for Rongsheng Chairman, Li Shuirong, he said that the completion of the transaction “marks the entry of Rongsheng and Aramco into a new era together, and also signifies an important step forward in Rongsheng's internationalization strategy.”
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.
