Saudi Aramco completes purchase of10-percent stake in Chinese petrochemicals firm

Saudi Aramco said on Friday it had completed its purchase of a 10-percent stake in a Chinese petrochemicals firm, part of an expansion into the world’s top crude importer.

The Saudi energy giant unveiled plans in March to acquire the stake in Rongsheng Petrochemical, valued at $3.4 billion.

The deal calls for the supply of 480,000 barrels per day of Saudi crude to an integrated refining and chemicals complex owned by a Rongsheng affiliate.

“Our strategic partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil,” Aramco vice president Mohammed al-Qahtani said in a statement.

“This key acquisition is an important part of Aramco’s long-term growth strategy, expanding our presence in a vital market.”

Rongsheng chairman Li Shuirong said the deal “marks the entry of Rongsheng and Aramco into a new era together, and also signifies an important step forward in Rongsheng’s internationalization strategy.”