Companies sign MoU regarding proposed acquisition.

Aramco in Talks to Acquire 10% Stake in Chinese Company Hengli Petrochemical
Pictured at the MoU signing are Janet Kong, CEO of Hengli Petrochemical International Pte. Ltd., sitting left, and Saleh Al Zaid, acting president of Aramco Asia, sitting right. Standing, from left, are Nasser Lasloom, Aramco Asia senior vice president of Downstream Business Development; Li Feng, Hengli Petrochemical director, vice general manager, and board secretary; Andrew Katz, Aramco vice president of Downstream Growth and Development; Yasser Mufti, Aramco executive vice president of Products and Customers; An Jinxiang, Hengli Group general manager; Nader Arfaj, Aramco China acting director; and Albert Lam, Hengli Petrochemical International Pet. Ltd head of Origination and Business Development.

Aramco, one of the world’s leading integrated energy and chemicals companies, has entered into discussions with Hengli Group Co., Ltd. (“Hengli Group”) regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (“Hengli Petrochemical”), subject to due diligence and required regulatory clearances.

The companies today signed a Memorandum of Understanding (MoU) regarding the proposed transaction, which aligns with Aramco’s strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements.

Hengli Petrochemical, a controlled subsidiary of Hengli Group, owns and operates a 400,000 barrel per day refinery and integrated chemicals complex in Liaoning Province, China, and several plants and production facilities in Jiangsu and Guangdong Provinces.

“This MoU supports our efforts to grow our global downstream footprint. We continue to explore new opportunities in important markets, as we seek to progress in our liquids-to-chemicals strategy.”

Mohammed Y. Al Qahtani, Aramco Downstream president

“We look forward to forging new partnerships and are excited by the prospect of expanding our presence in the important Chinese market,” added Al Qahtani.

Caption for top photo: Pictured at the MoU signing are Janet Kong, CEO of Hengli Petrochemical International Pte. Ltd., sitting left, and Saleh Al Zaid, acting president of Aramco Asia, sitting right. Standing, from left, are Nasser Lasloom, Aramco Asia senior vice president of Downstream Business Development; Li Feng, Hengli Petrochemical director, vice general manager, and board secretary; Andrew Katz, Aramco vice president of Downstream Growth and Development; Yasser Mufti, Aramco executive vice president of Products and Customers; An Jinxiang, Hengli Group general manager; Nader Arfaj, Aramco China acting director; and Albert Lam, Hengli Petrochemical International Pet. Ltd head of Origination and Business Development.

— The Arabian Sun: April 23, 2024