Sinopec, Saudi Aramco sign MoU to strengthen long-term cooperation

Aerial photo taken on March 23, 2021 shows a Sinopec construction site in Yangpu Economic Development Zone, south China's Hainan Province. (Xinhua/Pu Xiaoxu)

China Petroleum & Chemical Corporation (Sinopec), China's largest oil refiner, and Saudi Arabian Oil Company (Saudi Aramco) signed a memorandum of understanding (MoU) on Tuesday to strengthen long-term partnership, reported Shanghai Securities News Wednesday quoting Sinopec.

According to the MoU, the cooperation will cover Sinopec's existing refining and chemical projects and future expansion projects. Besides, the two sides will also work together to optimize the operation of their joint venture Fujian Refining & Petrochemical Company Limited (FREP).

It is learned that there are currently three joint ventures between Sinopec and Saudi Aramco, namely FREP and Sinopec SenMei (Fujian) Petroleum Company Limited located in China, and Yanbu Aramco Sinopec Refining Company located in Saudi Arabia.

The two sides have established a good partnership with cooperation covering crude oil trade, refining and chemical industry, engineering services and scientific and technological research and development, and the signing of the MoU will provide new opportunities in the optimization of raw materials for the refineries and the development of downstream petrochemical business of Sinopec, said Yu Baocai, president of Sinopec.

Mohammed Y. Al Qahtani, senior vice president of downstream operations with Saudi Aramco, noted that the signing of the MoU will further facilitate Saudi Aramco's downstream business integration and expansion in Asia, and meet China's growing energy needs by providing crude oil of low carbon intensity.