This latest MoU builds on existing partnerships between the two, as well as an agreement signed in March this year for potential downstream collaboration in China.

“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,” said Aramco’s senior vice president of downstream Mohammed Al Qahtani. “This latest collaboration will help to further advance our strategic relationship with Sinopec into key areas of mutual benefit within the Kingdom.”

The potential areas of collaboration include assessing refining and petrochemical integration opportunities; engineering, procurement and construction; oilfield services; upstream and downstream technologies; and carbon capture and hydrogen.

The companies will also discuss opportunities for establishing a local manufacturing hub in King Salman Energy Park, a project that Aramco is developing between Dammam and Al-Ahsa in the Eastern Province of Saud Arabia.

In March, Aramco announced that it had taken a final investment decision to participate in a major integrated refinery and petrochemical project in Panjin, China, being developed by Huajin Aramco Petrochemical, a joint venture with North Huajin Chemical Industries and Panjin Xincheng Industrial.

Other joint ventures between Aramco and Sinopec include Fujian Refining and Petrochemical and Sinopec Senmei (Fujian) Petroleum in China, and Yanbu Aramco Sinopec Refining in Saudi Arabia.

Aramco boosts lubricants with Valvoline buy

In separate news, Aramco has agreed to buy Valvoline for $2.65 billion. Valvoline produces premium-branded automotive, commercial and industrial lubricants, and automotive chemicals.

Al Qahtani commented: “Valvoline’s global products business fits perfectly with Aramco’s growth strategy for lubricants as it will leverage our global base oils production, contribute to our R&D capabilities and strengthen our existing relationships with OEMs. Valvoline’s brand strength and global recognition will continue to be developed and extended under Aramco’s stewardship.”

Completion of the transaction remains subject to the usual closing conditions, including regulatory approval.

Author: Elaine Burridge, Freelance Journalist