Saudi Aramco is in talks to buy a 10% stake in Shandong Yulong Petrochemical Co, it said on Wednesday.
Aramco and the company have signed a MoU to “facilitate discussions relating to the possible acquisition by Aramco of a 10% strategic equity interest”, the Saudi group said.
Under the terms of the preliminary agreement, Aramco may supply Shandong Yulong with crude oil and other feedstock. A deal is subject to due diligence, transaction documents being negotiated, and regulatory approvals.
Shandon Yulong is building a refinery complex that can process 400,000 barrels of crude a day in eastern China’s Shandong province.