Aramco, Sinopec sign MoU to collaborate on new projects in Saudi Arabia

ANKARA

The Saudi Arabian Oil Company Aramco signed a memorandum of understanding (MoU) with China Petroleum & Chemical Corporation (Sinopec) for multiple potential collaborations in Saudi Arabia, the Saudi company said on Wednesday.

The MoU cements the bilateral ties between the parties and builds cooperation in several areas including refining and petrochemical integration; engineering, procurement and construction; oilfield services, upstream and downstream technologies as well as collaboration across carbon capture and hydrogen processes.

The companies will also discuss the opportunities for the establishment of a local manufacturing hub in King Salman Energy Park.

The existing joint ventures between the two companies include Fujian Refining and Petrochemical Company (FREP) and Sinopec Senmei Petroleum Company (SSPC) in China, and Yanbu Aramco Sinopec Refining Company (YASREF) in Saudi Arabia.

"This latest collaboration will help to further advance our strategic relationship with Sinopec into key areas of mutual benefit within the Kingdom," Aramco’s Senior Vice President of Downstream Mohammed Al-Qahtani was quoted as saying in the statement.

Sinopec President Yu Baocai, for his part, underlined "fruitful collaborations and developed deep friendship" between the two companies over the years.

"The signing of the MOU introduces a new chapter of our partnership in the Kingdom. The two companies will join hands in renewing the vitality and scoring new progress of the Belt and Road Initiative and Vision 2030," Baocai said.