China’s privately-owned refinery Zhejiang Petroleum & Chemical Co (ZPC) signed a purchase deal with Saudi Arabian state oil producer Saudi Aramco for supply of 7.88 million barrels of crude oil, Chinese government-backed newspaper Zhoushan Daily reported.
The deal, worth $735 million, was sealed during the weekend at the 5th China International Import Expo in Shanghai.
According to Chinese Customs data, Saudi Arabia delivered 1.76 million bpd in shipments to China over the January to August period, marking an increase in its market share to 17.7% from 16.9% a year earlier.
Despite uncertainty in energy markets, China and Middle East oil companies continue long term cooperation. In August, a memorandum of understanding was signed between Saudi Aramco and Sinopec to partner on a wide range of joint venture projects in both countries.
Saudi Arabia recently stated that in addition to continuing in its role as China’s partner of choice in the oil market, the two countries would continue “close communication and strengthen co-operation to address emerging risks and challenges,” according to a joint communique from Saudi Energy Minister, Prince Abdulaziz bin Salman and Beijing’s National Energy Administrator, Zhang Jianhua.