 Saudi Aramco and China Petroleum and Chemical Corp, known as Sinopec, signed a preliminary agreement on Monday to cooperate in a wide range of areas, including oil exploration and development, refining and petrochemicals, according to a statement on Sinopec’s website today.
The agreement envisages that Aramco and Sinopec will coordinate closely on oil sales, trading, and project engineering, according to Sinopec.
The companies are already working together on a giant refinery at Yanbu in Saudi which will process 400,00bpd when completed. Stable supplies of Saudi crude are vital to China’s energy supply mix.
Aramco Chief Executive Khalid al-Falih and Sinopec Chairman Fu Chengyu were present to sign the memorandum of understanding in Beijing, Sinopec said.
Saudi Aramco currently exports about 240,000 barrels a day of crude oil to a Sinopec-operated joint venture refinery in southern China’s Fujian province. Saudi Aramco has a stake of nearly 25% in that refinery.
