Riyadh – Mubasher: Saudi oil giant Aramco is facing tough competition from the US, a new player among the black gold’s top producers, and Russia.
Such difficulties have propelled the Middle Eastern oil company to find new opportunities in China, the World’s second economy and the would-be first.
However, the new land was not that fertile for Aramco, as the Chinese market is full of oil titans like PetroChina and Sinopec Corp.
“Aramco had been talking to PetroChina for years about a refining venture in Yunnan province in the southwest, but industry sources said the plans had been effectively shelved due to poor economics and disagreement over marketing rights,” Reuters revealed on Thursday.
Saudi Aramco resorted then to independent players in the Chinese refining and petrochemical market.
Last month, Aramco signed an agreement to create a joint-venture with NORINCO Group and Panjin Sincen to develop a $10 billion (SAR 37.51 billion) fully- integrated refining and petrochemical complex, located in the city of Panjin in the Liaoning province of China.
“The private players are more open and entrepreneurial. They also need the oil and the experience,” Reuters reported, citing a source familiar with China’s deals as saying.
