Chinese privately-controlled refiner Rongsheng Petrochemical Co., Ltd. (SZSE:002493) and Saudi Arabian Oil Company (SASE:2222) are in talks for the Chinese company to buy a 50% stake in the Saudi company's refining unit SASREF, a filing showed on January 2, 2024. Rongsheng is also negotiating to sell Aramco an up to a 50% stake in its unit Ningbo Zhongjin Petrochemical Co., Ltd., the Chinese company said in a statement to the Shenzhen stock exchange, citing a memorandum of understanding signed on January 2, 2024. Saudi Aramco Jubail Refinery Company (SASREF), located in Jubail Industrial city, processes crude oil into petroleum products and has a production capacity of 305,000 barrels per day (bpd), its website shows.

If the SASREF stake acquisition happens, it would be the first investment by a private Chinese firm in a significant Saudi refining asset. State refining giant Sinopec Corp. is so far the only Chinese company that owns a refinery stake in Saudi Arabia.

The companies also discussed expanding the Saudi refinery and upgrading its products. The final investment decision is pending due diligence on Ningbo Zhongjin and SASREF by the two buyers respectively, Rongsheng Petrochemical said. Aramco said in March it had agreed to acquire a 10% stake in Rongsheng, an investment attached to a 20-year crude oil supply deal with Rongsheng-controlled Zhejiang Petrochemical Corp.

The deal closed in July at a valuation of $3.4 billion.