- Saudi Aramco may deepen investment in China’s oil industry as part of $65B worth of potential deals signed today between the two countries involving areas ranging from energy to manufacturing.
- An MoU with China's state-run Norinco will look into building refining and chemical projects in China, while Saudi Arabia's SABIC, one of the world's largest petrochemical firms, and Sinopec agree to develop petrochemical projects in the two countries.
- The countries also are said to be in talks for China’s sovereign wealth fund and largest energy company, CNPC, to invest in Saudi Aramco's coming IPO.
- “It is a win-win if China can take a sizable stake in the Aramco IPO,” says Nomura analyst Gordon Kwan. “China needs to ensure oil supplies from Saudi Arabia, given the structural decline of the country’s aging mature fields. Saudi Arabia can ensure market share in China, which might want to insist Aramco be listed in Hong Kong instead of London or the U.S.”
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