Sinopec And Saudi Aramco Sign A Memorandum! Strengthen Long-term Cooperative Relationship!

On March 9, the Sinopec Information Office learned that Sinopec Corp. ("Sinopec") signed a memorandum of understanding ("MOU") with Saudi Arabian Oil Company ("Saudi Aramco") yesterday. According to the memorandum, the scope of cooperation includes Sinopec's existing refining and chemical projects and future expansion projects. The two parties will give full play to their advantages and further strengthen long-term cooperation. At the same time, the two parties will jointly optimize the operation of the joint venture Fujian United Petrochemical Co., Ltd. (“Fujian United Petrochemical”).

It is understood that there are currently three joint ventures between Sinopec and Saudi Aramco, namely Fujian United Petrochemical Company, Sinopec Summi (Fujian) Petroleum Company located in China, and Yanbu Aramco Sinopec Refinery Company located in Saudi Arabia.

Yu Baocai, president of Sinopec Corp., said the cooperation between Sinopec and Saudi Aramco has a long history. The cooperation projects between the two parties include crude oil trading, refining and chemical engineering, engineering services, and scientific and technological research and development. They have a good strategic partnership, and a number of jointly implemented projects have become a model for energy cooperation between China and Saudi Arabia. In the context of the accelerated global energy transition, the signing of the memorandum will provide new opportunities for Sinopec refinery raw material optimization and downstream petrochemical business development to further deepen and expand.

Mohammed Y. Al Qahtani, senior vice president of Saudi Aramco's downstream business, said that the signing of the memorandum is a new chapter in the long-term partnership between Saudi Aramco and Sinopec. This will further facilitate the integration and expansion of Saudi Aramco's downstream business in Asia to meet its growing energy needs by supplying low-carbon-intensity crude oil to China.

Sinopec is a joint-stock company that integrates upstream, mid-stream and downstream operations in oil and gas business and is listed at home and abroad. Its parent company, Sinopec Group Corporation, is the world's largest oil refining company and the second largest chemical company, and has been ranked among the top 5 of the Fortune Global 500 for many years. Through its more than 30,000 gas stations, Sinopec provides services to 20 million customers every day.

Saudi Aramco is a globally integrated energy and chemicals company. The company produces about one-eighth of the world's crude oil, and at the same time develops new energy technologies, with employees all over the world, focusing on the reliable, sustainable development and efficient use of resources, promoting the stability and long-term growth of the world economy, and wholeheartedly committed to creating for the world positive influence.