Saudi Aramco in talks to buy 10% stake in Chinese refiner Yulong Petrochemical

Saudi Aramco is in talks to buy a 10 per cent stake in Shandong Yulong Petrochemical, it said on Wednesday (Oct 11), a deal that would further boost the state oil giant’s investments in China.

Shandon Yulong is building a refinery complex that can process 400,000 barrels of crude a day in eastern China’s Shandong province.

Under the terms of the preliminary agreement, Aramco may supply Shandong Yulong with crude oil and other feedstock. A deal is subject to due diligence, transaction documents being negotiated, and regulatory approvals.

“We believe this collaboration has the potential to enable all parties to contribute to China’s energy security and development, and aid in navigating the energy transition,” said Mohammed Al Qahtani, Aramco’s downstream president.

In March, the company raised its multi-billion US dollar investment in China by finalising and upgrading a planned joint venture in northeast China and acquiring an expanded stake in a privately controlled petrochemical group.