Dhahran, October 11, 2023, Aramco, a globally renowned integrated energy and chemical corporation, has entered into a momentous Memorandum of Understanding (MoU) with Nanshan Group Co., Ltd., Shandong Energy Group Co., Ltd., and Shandong Yulong Petrochemical Co., Ltd. The purpose of this MoU is to pave the way for discussions regarding Aramco's potential acquisition of a 10% strategic equity stake in Shandong Yulong Petrochemical Co., Ltd., contingent upon the completion of due diligence, negotiation of transaction agreements, and securing necessary regulatory approvals.
Situated in Longkou, Yantai City, within China's Shandong Province, Shandong Yulong is presently in the final stages of constructing a state-of-the-art refining and petrochemical complex. This complex is designed to process approximately 400,000 barrels per day (bpd) of crude oil, producing a substantial volume of petrochemicals and their derivatives. Notably, as specified in the MoU, Aramco is poised to become a prospective supplier of crude oil and other feedstock to Shandong Yulong.
Aramco's Downstream President, Mohammed Al Qahtani, expressed his enthusiasm regarding this collaboration, emphasizing Shandong's prominence as one of China's major refining and chemical hubs. He underscored the strategic importance of this endeavor for both the present and the future. Al Qahtani asserted that this partnership holds the potential to facilitate collective contributions toward China's energy security, developmental progress, and adaptation to the evolving energy landscape. Leveraging Aramco's well-established reputation as a dependable energy supplier to China and the dedication and expertise of Shandong Province, the future appears to be brimming with promise for this alliance.
This significant MoU signing closely follows Aramco's recent announcement of a cooperation framework agreement with Jiangsu Eastern Shenghong Co., Ltd., ("Eastern Shenghong"). In a similar vein, this agreement seeks to foster discussions related to Aramco's potential acquisition of a 10% strategic equity interest in Jiangsu Shenghong Petrochemical Industry Group Co., Ltd., a wholly-owned subsidiary of Eastern Shenghong, pending due diligence, negotiation of transaction documents, and requisite regulatory approvals. These developments mark a crucial step in Aramco's strategic expansion and engagement in the dynamic energy landscape.
