Saudi Aramco is in negotiations to purchase a 10% stake in the Chinese Hengli Petrochemical Co., the press service of the Saudi state-owned company reported.
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Aramco and Hengli Group, the parent company of Hengli Petrochemical, signed an agreement about intentions regarding the proposed transaction. Its conclusion requires due diligence and obtaining permits from regulators.
Hengli Petrochemical owns and operates an oil refining and petrochemical complex in the Chinese province of Liaoning with a refining capacity of 400 thousand barrels per day, as well as a number of enterprises in the provinces of Jiangsu and Guangdong.
The purchase of a stake in this company is in line with Aramco's strategy to expand its presence in the downstream segment in key markets, as well as development in the petrochemicals sector and concluding long-term agreements in the oil supply sector.
Hengli shares Petrochemical in Shanghai has risen in price by 18% since the beginning of 2024, the company's capitalization is 113.26 billion yuan ($15.64 billion).
