• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 29 mins Iran downs US drone. No military response . . Just Completely Destroy their Economy. Can Senator Kerry be tried for aiding enemy ?
  • 1 hour The Inconvenient Truth Of Electric Cars
  • 7 hours California and Oil
  • 5 hours The Plastics Problem
  • 2 mins Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 18 mins Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 9 hours Win Against Tyranny: Turkey's Opposition Strikes Blow To Erdogan With Istanbul Mayoral Win
  • 9 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 3 hours Hydrogen FTW... Some Day
  • 42 mins NATO Article 5: Attack on one member is attack on all. Members all must come to defense . . . NOT facilitate financial transactions to circumvent and foil US Sanctions. Somebody please tell Angela.
  • 19 hours Solar Panels at 26 cents per watt
  • 2 hours Oil Demand Needs to Halve: Equinor
  • 21 hours What's more Important Iran Nuke Deal or Strong China Trade Deal. Hypothetically, If China offered Trump North Korean and Iran deals in exchange for concessions on trade deal should he take it ?
  • 13 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)

Saudi Aramco In Talks To Buy $2B Stake In PetroChina Refinery

Refinery

Saudi Aramco is negotiating a deal to buy a stake of more than 30 percent in a 260,000-bpd refinery in China owned by state firm PetroChina, in a transaction valued at up to US$2 billion, The Wall Street Journal reported on Friday, quoting people familiar with the talks.

According to one of the people, Saudi Arabia could provide some of the crude oil for the refinery in the Yunnan province, and could also buy some of the retail assets of PetroChina, the WSJ reports.

Aramco and PetroChina have been discussing for years plans for Saudi Arabia to provide crude to a PetroChina refinery in exchange for a stake in the plant, but no deal has been sealed yet.

Back in 2011, Saudi Aramco said it had signed a memorandum of understanding to provide up to 200,000 bpd of Arabian crude oil via a long-term contract to the PetroChina refinery in Yunnan, which was then in the planning stage.

China is a crucial market for Saudi oil, and earlier this year Saudi King Salman visited China in a move 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.

Related: The Next Big Catalyst In The U.S. Oil Export Boom

During the king’s visit, China and Saudi Arabia signed preliminary deals that could be worth as much as US$65 billion if finalized. 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.

Saudi Arabia is also trying to build more investment ties with China, and according to The Journal, the Saudis hope that Chinese firms and funds would buy major chunks of Aramco’s IPO next year, expected to be the world’s biggest initial public offering ever.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on August 07 2017 said:
    So much for ARAMCO sale to invest in the Saudization of Saudi Arabia. King Salmon needs cash now. Investing at the top of the Chinese market is none too shrewd.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News