Saudi Aramco plans to acquire 10% stake in Hengli Petrochemical

Saudi Aramco, one of the world's leading integrated energy and chemical companies, has entered into discussions with Hengli Group Co., Ltd. to acquire a 10% stake in Hengli Petrochemical. The two companies signed a memorandum of understanding on the proposed transaction on April 22. Hengli Group will use the memorandum to support and promote strategic cooperation between the listed company and Saudi Aramco in crude oil supply, raw material supply, product offtake, technology licensing, etc. The MoU is in line with Aramco’s growth objectives to expand its downstream presence in key high-value markets, advance liquid chemicals projects and secure long-term crude oil supply agreements.

Hengli Petrochemical is a holding subsidiary of Hengli Group. It owns and operates an integrated chemical enterprise with a daily production capacity of 400,000 barrels of oil in Liaoning Province, China, and owns and operates multiple factories and production facilities in Jiangsu Province and Guangdong Province.

Mohammed Y. Al Qahtani, president of Saudi Aramco's downstream operations, said:"This memorandum of understanding supports the expansion of our global downstream business. As we continue to advance our liquid chemicals projects, we will continue to explore new opportunities in important markets. We look forward to establishing new partnerships and are confident about the prospects of expanding our business in the Chinese market."

This acquisition will help Saudi Aramco further expand its presence in the Chinese market. At the same time, Hengli Petrochemical will receive the support of its controlling shareholder and conduct in-depth cooperation with Saudi Aramco in various fields such as crude oil, raw material supply, and technology licensing, which will help Hengli Petrochemical further enhance its market competitiveness.