China Petroleum & Chemical Corp. (Sinopec) said it was invited to invest in Saudi Aramco as part of what could be the world’s biggest initial public offering (IPO), Oil and Gas People informed.
Sinopec’s Chairman, Wang Yupu, informed that talks between the two companies are ongoing whereas Aramco’s CEO, Amin Nasser, told officials he hoped Sinopec would invest in the listing, Bloomberg reported.
Yupu said: “Going forward, based on our own reality and needs, we will get into more detailed conversations with them.”
As Saudi Arabia prepares for the IPO by deepening relationships with its most significant buyers, China counts as one of the kingdom’s targets with imports reaching as much as 1.24mb/d from Saudi markets.
Aramco’s hunt for new deals, especially in refining, is part of the firm’s long-standing strategy to help lock in demand for its crude.
In February, the company signed a contract to supply Arab Extra Light crude to the Chinese oil refiner North Huajin Chemical Industries Group Corp. Furthermore, Aramco expanded its ownership of refineries and petrochemical plants in Indonesia and Malaysia with investments totaling $13b.