Netherlands-based chemical company, Aramco is set to purchase stake in Rongsheng Petrochemicals.
The deal was closed for USD 3.4bn in which Rongsheng’s 10% interest was acquired by Aramco by its subsidiary, Aramco Overseas Company BV.
The deal is a landmark deal that is in line with the announcement made on March 27, 2023, and represents the growth of Aramco’s presence in China. According to the transaction, a Chinese integrated refining and chemicals complex owned by Rongsheng’s affiliate Zhejiang (ZPC) shall receive a supply of 480,000 bpd of Arabian crude. The complex presently can process 800,000 bpd of crude oil and additionally to generate 4.2mn tpy of ethylene.
The President of Aramco, Mr. Mohammed Y. Al Qahtani stated that their partnership with Rongsheng expands the company’s presence in China and depicts the importance of Aramco as a crude oil supplier.
While Rongsheng’s Chairman Li Shuirong, added, “The completion of this 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.”
ZPC has given its 51% equity interest to Rongsheng
