Saudi Aramco, China’s Sinopec sign MoU to boost strategic collaboration

The world’s largest oil-exporting company Saudi Arabian Oil Company (Saudi Aramco) has signed a memorandum of understanding (MoU) with China Petroleum & Chemical Corporation (Sinopec).

According to an official statement from Aramco, the agreement outlines “pathways for strategic cooperation between Aramco and Sinopec and supports the long-term relationship between the two companies and their existing joint ventures in China and in the kingdom”.

Mohammed Y Al Qahtani, Aramco SVP of Downstream, said: “We are delighted to be able to extend our relationship with Sinopec and leverage our mutual strength and reach while creating a path to bring our long-standing cooperation in China to our facilities in Saudi Arabia. This latest collaboration will help to further advance our strategic relationship with Sinopec into key areas of mutual benefit within the kingdom.”

Yu Baocai, president of Sinopec, said: “Aramco is a very important partner of Sinopec. The two companies have yielded fruitful collaborations and developed a deep friendship over the years. The signing of the MoU introduces a new chapter of our partnership in the kingdom. The two companies will join hands in renewing the vitality and scoring new progress of the Belt and Road Initiative and Vision 2030.”

The companies will jointly assess refining and petrochemical integration opportunities; engineering, procurement and construction; oilfield services, upstream and downstream technologies, and in the areas of carbon capture and hydrogen processes.

The companies will also discuss the opportunities for the establishment of a local manufacturing hub in King Salman Energy Park.

This latest collaboration builds on existing joint ventures between the two companies, including Fujian Refining and Petrochemical Company (FREP) and Sinopec Senmei (Fujian) Petroleum Company (SSPC) in China, and Yanbu Aramco Sinopec Refining Company (YASREF) in Saudi Arabia.