Saudi Aramco has agreed to acquire 10 per cent of a Chinese oil refiner for $3.6bn in the second in a pair of deals set to strengthen the relationship between the Middle Eastern state oil company and its biggest market.Under the arrangement with Shenzhen-listed Rongsheng Petrochemical Co, Saudi Aramco will supply 480,000 barrels a day of Saudi crude to China’s largest integrated refining and chemicals facility in Zhejiang province.
The investment comes a day after Saudi Aramco announced a joint venture with two other Chinese companies to build a new 300,000 b/d refinery and petrochemicals complex in China’s north-east.
The combined deals promise to increase Saudi Aramco’s supply contracts with China by up to 690,000 b/d just as Saudi Arabia’s share of the world’s largest oil import market is coming under pressure from a rise in shipments of discounted crude from Russia.