Saudi Arabian Oil Co. is taking a 10% stake in a Chinese petrochemical company to expand its crude oil presence in the country.

Saudi Aramco

Aramco, as it is known, said it would pay around $3.6 billion to buy the interest in Rongsheng Petrochemical Co. Ltd. 

Aramco Overseas Co. (AOC) would manage the stake. Under a long-term sales agreement, Aramco would supply 480,000 b/d to Rongsheng affiliate Zhejiang Petroleum and Chemical Co. Ltd (ZPC). 

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“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector,” Aramco’s Mohammed Y. Al Qahtani, executive vice president of...