• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 18 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days Energy Armageddon
  • 1 day "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 20 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Goldman Betting on Cryptocurrencies
  • 8 days Сryptocurrency predictions
  • 13 days Putin and Xi Bet on the Global South
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

China, Saudi Arabia Ink $65-Billion Worth Of Preliminary Deals

China and Saudi Arabia have signed preliminary deals that could be worth as much as $65 billion if finalized, Xinhua reports. The news came on the first day of a four-day visit by Saudi King Salman to China.

China’s Deputy Foreign Minister Zhang Ming said that President Xi Jinping and King Salman inked a total 14 cooperation agreements, including a memorandum of understanding on 35 projects for “production capacity and investment cooperation”. Among the industries that the agreements cover are oil production, petrochemicals, and even space.

China is a crucial market for Saudi oil, and the king’s visit is widely seen as an attempt to secure future exports, preferably under long-term contracts, which is the standard approach of the Kingdom toward crude oil exports.

Outside oil exports, Saudi Arabia is also looking for opportunities to expand its refining and chemical production markets, Reuters notes, as part of its growth strategy.

One of the preliminary agreements, for example, envisages the joint development of downstream and petrochemical projects in China with local North Industries Corporation – a state company.

Another will see Saudi basic Industries Corp. and Sinopec work on petrochemical projects both in China and Saudi Arabia. The two already have a joint project – a refinery in Tianjin in northeastern China. Related: Saudi Arabia Tries To Reassure Markets After Oil Price Plunge

Besides the business aspect of the deals, they also signal Saudi Arabia’s willingness to see greater Chinese involvement in the Middle East. The Chinese Foreign Ministry said King Salman had encouraged China to play a more active role in regional affairs, quoting him as saying “Saudi Arabia is willing to work hard with China to promote global and regional peace, security and prosperity.”

Xi, for his part, acknowledged the mutually beneficial respect between China and “Islamic countries”, suggesting China would not mind a greater involvement in Middle Eastern affairs at all.

For Saudi Arabia, this greater Chinese involvement could perhaps mean additional leverage against its political and religious rival—Iran—although China is being wary: during King Salman’s visit, China’s Foreign Minister Wang Yi made a point of saying that “We hope that Saudi Arabia and Iran can resolve the problems that exist between them via equal and friendly consultations,” signaling the role of a mediator between the two is what China is aiming for.

By Irina Slav of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News