By Christian Moess Laursen


Saudi Aramco has signed a preliminary deal with Hengli Group to buy a 10% stake in the Chinese company's petrochemical subsidiary, adding to its presence in China as it continues to grow its global downstream footprint.

Saudi Arabia's national oil company said Monday that the proposed transaction aligns with its strategy to expand downstream operations in what it sees as key high-value markets, to advance its liquids-to-chemicals program and to secure long-term crude oil supply deals.

No financial details were provided.

In December Saudi Aramco signed a deal to buy a 40% stake in Gas & Oil Pakistan for an undisclosed amount.

Saudi Aramco will continue to explore new opportunities in important markets as it seeks to progress its liquids-to-chemicals strategy, Aramco Downstream President Mohammed Y. Al Qahtani said.

Hengli Petrochemical owns and operates a 400,000-barrel-a-day refinery and integrated chemicals site in the Liaoning province, China, and a number of plants and production facilities in the Jiangsu and Guangdong provinces.


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

04-22-24 0934ET