Aramco Acquires Stake in Rongsheng Petrochemical

Aramco Completes Purchase of Stake in Rongsheng Petrochemical Aramco, one of the world's leading integrated energy and chemicals companies, has successfully completed a significant transaction to acquire a 10% stake in Rongsheng Petrochemical Co. Aramco acquired the 10% stake in Rongsheng Petrochemical for USD 3.4 billion through its Netherlands-based subsidiary Aramco Overseas Company BV. The acquisition was completed following definitive strategic agreements signed between both parties on 27 March 2023. Representing the continued growth of Aramco's downstream presence in China, the agreement also includes the supply of 480,000 barrels per day of Arab crude oil to China's largest integrated refinery and chemical complex, owned by Zhejiang Petroleum and Chemical Co. Ltd (ZPC), an affiliate of Rongsheng. Mohammed Y. Al Qahtani, President of Aramco Downstream, stated: "Our strategic partnership with Rongsheng advances Aramco's liquids-to-chemicals strategy, grows our presence in China and demonstrates our importance as a reliable crude oil supplier. This significant acquisition is a key part of Aramco's long-term growth strategy and expands our presence in a vital market." Rongsheng Board Chairman Li Shuirong said: "The completion of this transaction shows that Rongsheng and Aramco are entering a new era together and that Rongsheng has taken an important step in its internationalization strategy." Rongsheng holds a 51% stake in ZPC, which has crude oil processing capacity of 800,000 barrels per day and ethylene production capacity of 4.2 million metric tonnes per year. Source