Dhahran, Saudi Arabia — Aramco has signed an MoU that paves the way for Aramco’s potential acquisition of a 10 percent strategic equity stake in Shandong Yulong Petrochemical Company, subject to rigorous due diligence, negotiation of transaction terms, and the necessary regulatory approvals.
The MoU was signed with Nanshan Group, Shandong Energy Group, and Shandong Yulong Petrochemical.
Shandong Yulong is presently in the final stages of constructing a significant refining and petrochemical complex with the capacity to process approximately 400,000 barrels per day (bpd) of crude oil.
This facility will be a vital producer of petrochemicals and their derivatives, strategically located in Longkou, Yantai City, within China’s Shandong Province. Under the terms of the MoU, Aramco could become a crucial supplier of crude oil and other feedstock to Shandong Yulong, Aramco said.
Aramco Downstream President, Mohammed Al Qahtani, expressed the company’s enthusiasm for the venture: “As one of China’s largest refining and chemical centers, Aramco values Shandong for its current strength and future prospects.”
“We believe this collaboration has the potential to enable all parties to contribute to China’s energy security and development and assist in navigating the energy transition. With Aramco’s long-standing reputation as a reliable energy supplier to China, combined with the expertise and dedication of Shandong Province, we envision a prosperous future together,” he said.
This MoU follows a recent announcement made last month, where Aramco had initiated discussions with Jiangsu Eastern Shenghong, concerning the possible acquisition of a 10 percent strategic equity interest in Jiangsu Shenghong Petrochemical Industry Group, a wholly owned subsidiary of Eastern Shenghong. Like the Shandong Yulong deal, this agreement is contingent upon due diligence, the negotiation of transaction agreements, and the necessary regulatory approvals.
