Saudi Aramco, Norinco sign deal for $10bn oil refinery


Saudi Aramco signs refinery-petrochemical deal in China

Saudi Aramco on Friday signed a joint venture agreement with Chinese defence conglomerate Norinco, to establish a refining and petrochemical complex in northeastern China.

The deal, worth over $10 billion according to the state-controlled oil giant, includes a 300,000-barrel per day (bpd) refinery with a 1.5 million metric tonnes per year ethylene crack under a new joint venture company.

The new refinery named Huajin Aramco Petrochemical Co is expected to become operational by 2024.

The agreement entails that the state-run Aramco will supply 70 percent of the crude feedstock for the refinery.

READ ALSO  NNPC denies knowledge of memo directing Shell oil bloc takeover

The investments could help Saudi Arabia regain its place as the top oil exporter to China, a position Russia has held for the last three years.