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Saudi Aramco Expands Presence in Chinese Oil Market

Saudi Aramco Expands Presence in Chinese Oil Market

Friday, 6 September, 2019 - 04:30
Aramco and Zhejiang officials during the MoU singing ceremony. Asharq Al-Awsat

Saudi Aramco, the world's biggest oil producing company, said on Thursday that it signed a Memorandun of Understanding (MoU) with China’s Zhejiang free trade zone to facilitate its acquisition of 9 percent stake in Zhejiang integrated refinery and petrochemical complex.

The MoU was signed during a visit by Yuan Jiajun, governor of the Chinese province of Zhejiang, to Aramco’s headquarters in the Saudi city of Dhahran, Aramco said in a statement.

The MoU also included a long-term crude oil supply agreement and will allow Aramco to utilize Zhejiang Petrochemical’s large crude oil storage facility to serve its customers in Asia, according to the statement.

Aramco's new chairman Yasir al-Rumayyan said on Wednesday he would work with international parties and local ministries to prepare for a listing of the oil producing giant.

"I will work with my colleagues on Aramco's board to secure the highest standards of transparency and efficiency," state-run Saudi news agency, SPA, quoted him as saying.

Aramco is preparing an initial public offering (IPO) of up to a 5 percent stake by 2020-2021.

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