Saudi Arabian Oil Company (Aramco) has signed a memorandum of understanding (MoU) 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 Aramco and Sinopec and supports the long-term relationship between the two companies and their existing joint ventures in China and Saudi Arabia.
The wide-ranging areas of potential cooperation include assessing refining and petrochemical integration opportunities; engineering, procurement and construction; oilfield services, upstream and downstream technologies; and collaboration across carbon capture and hydrogen processes.
The companies will also discuss the opportunities for the establishment of a manufacturing hub in King Salman Energy Park, a mega project being constructed between Dammam and Al-Ahsa in the Eastern Province of Saudi Arabia.
This latest collaboration builds on existing joint ventures between the two companies, including Fujian Refining and Petrochemical Company and Sinopec Senmei (Fujian) Petroleum Company in China, and Yanbu Aramco Sinopec Refining Company in Saudi Arabia.
Sinopec president Yu Baocai says the signing of the MOU opens a new chapter in the partnership between the two companies and advances China‘s Belt and Road Initiative and Saudi Arabia’s Vision 2030.