Aramco in Talks to Acquire 10% Stake in Hengli Petrochemical
Saudi Arabia’s state-owned oil giant Aramco has entered into discussions with Hengli Group regarding the potential acquisition of a 10% stake in Hengli Petrochemical, subject to due diligence and required regulatory clearances.
On Monday, the companies signed a Memorandum of Understanding (MoU) regarding the proposed transaction, which Aramco said is in line with the company’s strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements.
Hengli Petrochemical, a subsidiary of Hengli Group, owns and operates a 400,000 b/d refinery and integrated chemicals complex in Liaoning Province, China, and several plants and production facilities in Jiangsu and Guangdong provinces.
Mohammed Y. Al Qahtani, Aramco’s Downstream president, said: “This MoU supports our efforts to grow our global downstream footprint. We continue to explore new opportunities in important markets, as we seek to progress in our liquids-to-chemicals strategy. We look forward to forging new partnerships and are excited by the prospect of expanding our presence in the important Chinese market.”
