Saudi Aramco is in discussions to purchase a 10% equity stake in Shandong Yulong Petrochemical, a Chinese petrochemical company currently constructing an oil refining and petrochemical complex in Shandong Province. The facility is designed to process around 400,000 barrels per day of crude oil and produce various petrochemicals and derivatives. Aramco has signed a memorandum of understanding with Nanshan Group, Shandong Energy Group, and Shandong Yulong to facilitate discussions for the potential acquisition. As part of the agreement, Aramco will also supply crude oil and other feedstock to Shandong Yulong. This deal aims to expand Aramco's global downstream operations and is subject to regulatory approval, transaction agreement negotiations, and due diligence.

Aramco's downstream president, Mohammed Al Qahtani, expressed the company's commitment to collaborating with Shandong to contribute to China's energy security, development, and energy transition. This follows Aramco's recent investments in the Chinese petrochemical sector, aligning with its efforts to strengthen its presence and partnerships in China.

The acquisition is in line with Aramco's strategy to expand its presence and investments in China, fostering collaborations and contributing to the nation's energy development and transition goals. The company has recently made significant investments in various sectors, including petrochemicals, LNG, and more, demonstrating its commitment to the Chinese market and its role in the global energy landscape.