Aramco has signed a Memorandum of Understanding (MoU) with China Petroleum & Chemical Corporation (Sinopec) covering multiple areas of potential collaboration, including the assessment of refining and petrochemical integration opportunities; continued engineering, procurement and construction; oilfield services; upstream and downstream technology development as well as collaboration across carbon capture and hydrogen processes.

The MoU outlines pathways for strategic cooperation between Aramco and Sinopec and supports the long-term relationship between the two companies and their existing joint ventures, including Fujian Refining and Petrochemical Company (FREP) and Sinopec Senmei (Fujian) Petroleum Company (SSPC) in China, as well as Yanbu Aramco Sinopec Refining Company (YASREF) in Saudi Arabia.

Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said of the signing, “We are delighted to be able to extend our relationship with Sinopec and leverage our mutual strength and reach while creating a path to bring our long-standing cooperation in China to our facilities in Saudi Arabia. This latest collaboration will help to further advance our strategic relationship with Sinopec into key areas of mutual benefit within the Kingdom.”

Meanwhile, Yu Baocai, President of Sinopec Corp., stated, “The signing of the MOU introduces a new chapter of our partnership in the Kingdom. The two companies will join hands in renewing the vitality and scoring new progress of the Belt and Road Initiative and Vision 2030.”

The companies will also discuss the opportunities for the establishment of a local manufacturing hub in King Salman Energy Park.

In June, Aramco had offered to build a “one-stop shop” in the city of Shandong that could help with China’s long-term energy security, economic development and climate change mitigation goals.

Addressing the gathering at the 3rd Qingdao Multinationals Summit in China, Al Qahtani had told that China’s rising energy needs and the challenging environment underlined the strategic case for a more resilient energy system.

“The impact of an Aramco ‘one-stop shop’ on Shandong would be profound. And it would solidify Shandong’s crucial role in making some of China’s most important goals a reality,” said Al Qahtani

"Stronger ties with the world’s largest oil exporter would enhance China’s energy security, especially as we work on increasing our production capacity to 13 million barrels per day," he stated.