Aramco and Sinopec agree to collaborate on projects in Saudi Arabia
Both companies have signed a MoU to strengthen its upstream and downstream businesses as well as operations centred on alternative fuels.
Saudi Arabian Oil Company (Aramco) has signed a memorandum of understanding with China Petroleum & Chemical Corporation (Sinopec) covering multiple areas of potential collaboration between the parties in Saudi Arabia. The MoU outlines pathways for strategic cooperation between both companies and supports the long-term relationship for both and their existing joint ventures in China and in the Kingdom.
“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,” said Mohammed Y. Al Qahtani, Senior Vice President of Downstream at Aramco.
The potential areas of cooperation include assessing refining and petrochemical integration opportunities; engineering, procurement and construction; oilfield services, upstream and downstream technologies as well as collaboration across carbon capture and hydrogen processes. The firms will also discuss the opportunities for the establishment of a local manufacturing hub in King Salman Energy Park.
“The two companies have yielded fruitful collaborations and developed deep friendship over the years. 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,” added Yu Baocai, President of Sinopec Corp.
This latest collaboration builds on existing joint ventures between the two companies, including Fujian Refining and Petrochemical Company (FREP) and Sinopec Senmei (Fujian) Petroleum Company (SSPC) in China, and Yanbu Aramco Sinopec Refining Company (YASREF) in Saudi Arabia.
