The China Petroleum & Chemical Corporation (Sinopec) has said it has been invited to invest in Saudi Aramco as part of what could be the world’s biggest-ever initial public offering (IPO).
The two companies are in talks about the opportunity, Wang Yupu, chairman of the Chinese refiner, has told Bloomberg. During a visit to China this month, Aramco’s chief executive officer Amin Nasser told officials he hoped the company could invest in the listing, Wang said.
Saudi Arabia is preparing for the flotation by deepening relationships with its biggest buyers and locking in future demand for its oil.
“We talked with them on the plan, and generally speaking we had a very good conversation,” Wang said of the offer from Aramco, speaking during a briefing in Hong Kong. “Going forward, based on our own reality and needs, we will get into more detailed conversations with them.”
A Saudi Aramco spokesman declined to comment to Bloomberg’s request for a confirmation.
China is growing more reliant on overseas crude as its domestic reserves dwindle and economic growth spurs higher demand.
China’s $814bn sovereign wealth fund, China Investment Corp., and Sinopec-rival China National Petroleum Corporation (CNPC) may invest in the IPO, Bloomberg News had earlier reported.
