BRICS Oil Giant Enters Chinese Market: A Crypto Perspective

• Aramco Set to Expand its Chinese Investments
• Proposed Financial Stake in Chinese and Saudi Companies
• An Expanding Partnership for Energy Trade
• Possibility of Joint Upgradation and Expansion
• A Win-Win Deal between China and Saudi Arabia
• Benefits of the Partnership

Aramco Set to Expand its Chinese Investments

With an aim to reinforce relations between China and Saudi Arabia, Saudi Arabian oil enterprise, Aramco, is planning to escalate its investments in the Chinese firm, Ningbo Chongjin Petrochemical.

Proposed Financial Stake in Chinese and Saudi Companies

In a recent notification submitted to the Shenzhen Stock Exchange, it was mentioned that Aramco is negotiating with Rongsheng Petrochemical, a privately-owned refiner from Hangzhou, to acquire a majority 50% stake in Ningbo Chongjin Petrochemical. Furthermore, discussions are underway about the possibility of Aramco obtaining a 50% stake in the refining unit of the Saudi company, Saudi Aramco Jubail Refinery Company.

An Expanding Partnership for Energy Trade

The prospective collaborations hint towards a strengthening relationship between the two corporations, which could potentially benefit the energy trade ties between China and Saudi Arabia.

Possibility of Joint Upgradation and Expansion

Rongsheng Petrochemical further suggests that the companies might jointly upgrade and expand the Chinese subsidiary's equipment. Such a partnership could pave the way for the Rongsheng New Materials (Zhoushan) project, aimed at the production of high-performance petrochemicals, such as engineering plastics, special polyesters, and high-end resins. These materials have extensive utility in the manufacturing of electronic devices and semiconductors, as per Rongsheng.

A Win-Win Deal between China and Saudi Arabia

This potential agreement represents one of the several initiatives that China and Saudi Arabia have undertaken in the past year to bolster their partnership. With Saudi Arabia officially becoming a part of BRICS at the beginning of the year, the nation is eager to leverage its wealth in resources to amplify its global influence and alliances with other BRICS nations.

Benefits of the Partnership

The partnership is mutually advantageous, and it is expected that, if any transactions occur, they will be conducted independently of the US dollar. Consequently, China, Saudi Arabia, and the other BRICS countries stand to gain on the energy and oil front, meanwhile potentially diminishing the strength of the US dollar.

Edited by Jonathan Stoker