Sinopec to Form nearly $4 Billion Joint Venture with Saudi Aramco Subsidiary

Sinopec said on April 28 that it had signed an agreement with a subsidiary of Saudi Aramco to establish a joint venture with a registered capital of 28.8 billion yuan (3.95 billion U.S. dollars).

The agreement was signed by Sinopec, its subsidiary Fujian Petrochemical, and Saudi Aramco's Singapore subsidiary Aramco Asia Singapore Pte Ltd (AAS).

Sinopec and its subsidiary Fujian Petrochemical will contribute 7.2 billion yuan and 14.4 billion yuan in cash, respectively, while the rest will be contributed by AAS.

The joint venture Fujian Sinopec Aramco Refining and Petrochemical Co. will engage in port operations, crude oil transportation and other activities at the refining and petrochemical complex in Gulei Port Economic Development Zone, Zhangzhou City, Fujian Province, China.

Sinopec and Saudi Aramco started building the complex in November last year as part of the Middle Eastern company's plan to expand downstream business outside Saudi Arabia and supply 1 million barrels of crude oil per day to China for petrochemical investment.