Saudi Arabian Oil Company (SASE:2222) has entered into discussions with Hengli Group Co. Ltd. (?Hengli Group?) regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co.,Ltd. (SHSE:600346) (?Hengli Petrochemical?), subject to due diligence and required regulatory clearances. The companies signed a Memorandum of Understanding (MoU) regarding the proposed transaction, which aligns with Aramco?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.

Mohammed Y. Al Qahtani, Aramco 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".