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.