On September 11, Saudi Aramco announced that it had signed a framework agreement with Rongsheng Petrochemical. The two parties are discussing Rongsheng Petrochemical's proposed acquisition of a 50% stake in Saudi Aramco's wholly-owned subsidiary, SASREF. They are considering expanding production capacity to enhance product flexibility, complexity, and quality. Additionally, there is a potential acquisition of up to 50% of the equity in Rongsheng Petrochemical's wholly-owned subsidiary, Zhongjin Petrochemical, and a joint development plan for upgrading and expanding Zhongjin Petrochemical's existing facilities. At the same time, Saudi Aramco has signed a strategic cooperation agreement with Hengli Group to advance negotiations for a potential acquisition of a 10% stake in Hengli Petrochemical, though this still requires due diligence and regulatory approval.
In recent years, Saudi Aramco has engaged in numerous collaborations with leading Chinese private petrochemical enterprises. Saudi Aramco's substantial investments in Chinese oil refining companies are mutually beneficial. For Saudi Aramco, standing at the cusp of a global energy green revolution, fossil fuels face the risk of declining value, and the oil market is likely to shift towards a "buyer’s market." Investing in downstream oil refining facilities can facilitate crude oil sales. Chinese companies accepting Saudi investment are large private enterprises without upstream oil and gas exploration rights. Gaining Saudi capital not only helps address concerns about resource supply but also mitigates the risk of resource dependency.