Aramco expands its presence in China by acquiring a 10% interest in Rongsheng Petrochemical

Dhahran, Saudi Arabia, March 28, 2023 (Reuters) /PRNewswire/ – The deal includes the delivery of 480,000 barrels per day of crude oil to the largest integrated refining and chemical complex in China

Aramco, one of the world’s leading integrated energy and chemical companies, has entered into definitive agreements to acquire a 10% interest in Shenzhen-listed Rongsheng Petrochemical Co. Ltd. (“Rongsheng”) for RMB24.6 billion (US$3.6 billion at current exchange rates). This transaction would significantly expand the Company’s downstream presence in China.

Under a strategic long-term sale agreement, Aramco will sell 480,000 barrels per day (bpd) of Arabian crude oil to Rongsheng subsidiary Zhejiang Petroleum and Chemical Co. Ltd. (ZPC) deliver. Aramco Overseas Company (“AOC”), a wholly owned subsidiary of Aramco, will acquire the interest in Rongsheng.

Among other things, Rongsheng owns a 51% interest in ZPC, which in turn owns and operates the largest integrated refining and chemical complex in China with a processing capacity of 800,000 bpd of crude oil and an annual production capacity of 4.2 million tons of ethylene.

Mohammed Y. Al Qahtani, Executive Vice President Downstream of Aramco, explained: “This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of China’s petrochemical sector. It is an important acquisition for Aramco in a key market that supports our growth ambitions and advances our liquid-to-chemical conversion strategy. It also promises to ensure a reliable supply of crude oil to one of China’s most important refineries.

Li Shuirong, Chairman of Rongsheng said: “This strategic cooperation will take our long-standing friendship and mutual trust to a new level and pave the way to a bright future for the high-quality development of the global petrochemical industry. I am convinced that the participation of Aramco will significantly help Rongsheng execute its petrochemical growth strategy.”

The investment would anchor an important link between Aramco, Rongsheng and ZPC, which operates one of the most advanced chemical conversion plants in the world.

The transaction involves an over-the-counter secondary sale of Rongsheng shares by majority shareholder Zhejiang Rongsheng Holding Group, which offers the potential for future cooperation between the players in trading, refining, chemical production and technology licensing. The transaction is expected to be completed by the end of 2023 and is subject to regulatory approvals.

Earlier, on March 26, it was announced that the Aramco joint venture Huajin Aramco Petrochemical Company (HAPCO) plans to start construction of a large-scale integrated refining and petrochemical complex in northeast China in the second quarter of 2023. Aramco, which owns a 30% interest in HAPCO, will supply up to 210,000 bpd of crude oil to the complex.

As part of the partnership with Rongsheng and the HAPCO joint venture, Aramco would ship a total of 690,000 bpd of crude oil to high chemical processing plants.

Information about Aramco

Aramco is a global integrated energy and chemical company. We are driven by the core belief that energy is an opportunity. From extracting approximately one in eight barrels of the world’s oil supply to developing new energy technologies, our global team strives to make a difference in everything we do. We focus on making our resources more reliable, sustainable and useful. This helps promote stability and long-term growth around the world.


This press release contains forward-looking statements. All statements, other than statements of historical or current fact, contained in the press release are forward-looking statements. Forward-looking statements provide the Company’s current expectations and projections with respect to its capital expenditures and investments, major projects, upfront investments, including peer comparisons, and growth in downstream and chemical businesses. These statements may include, without limitation, statements preceded by words such as “goal,” “anticipate,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,” “anticipate” , “will”, “may”, “likely”, “should”, “would”, “continue”, “advance” and other words and terms of similar meaning or their negation precede, follow or are contained in them. Such Forward-looking statements involve known and unknown risks, uncertainties and other factors that are beyond the Company’s control and could cause the Company’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements contained in such forward-looking statements statements expressed or implied, including the following factors: international crude oil supply and demand and the prices at which Aramco sells crude oil; the impact en of COVID-19 on business and economic conditions and supply and demand for crude oil, gas and refined and petrochemical products; adverse economic or political developments that could affect the Company’s results of operations; competitive pressures faced by the company; significant deviations or changes in existing economic and operational conditions that could affect the estimated quantity and value of proven reserves; operational risks and hazards in the oil and gas, refining and petrochemical industries; the cyclical nature of the oil and gas, refining and petrochemical industries; weather conditions; political and social instability and unrest and actual or potential armed conflict in the regions in which Aramco operates and other areas; losses due to risks related to inadequate insurance; the Company’s ability to complete current and future projects; litigation to which the Company is or may be exposed; the Company’s ability to realize benefits from its recent and future acquisitions, including with respect to SABIC; risks related to international business, including sanctions and trade restrictions, anti-corruption laws and other laws and regulations; risks related to oil, gas, environmental, health and safety regulations and other regulations affecting the industries in which Aramco operates; the Company’s dependence on its management and key personnel; the reliability and security of the company’s IT systems; climate change concerns and impacts; risks related to government-directed projects and other government requirements, including those related to government-set crude oil production ceilings and MSC target; fluctuations in interest and exchange rates; and other risks and uncertainties that could cause actual results to differ from the forward-looking statements contained in this press release as set out in the Company’s most recent periodic reports filed with Tadawul. For more information on potential risks and uncertainties that could cause actual results to differ from those projected, please refer to the Company’s most recent periodic reports on file with Tadawul. Such forward-looking statements are based on numerous assumptions about the Company’s current and future business strategies and the environment in which it will operate in the future. The information contained in the press release, including but not limited to any forward-looking statements, speaks only as of the date of this press release and is not intended to be a representation of future results. The Company expressly disclaims any obligation or undertaking to disseminate any update or revision of the press release, including any financial data or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulation. The press release should not be construed as financial, tax or investment advice. Undue reliance should not be placed on forward-looking statements.

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