Saudi Aramco has held advanced talks on acquisition deals with Chinese refiners Rongsheng Petrochemical and Hengli Petrochemical, it said on Wednesday, as it aims to bolster its downstream business in a top market for its crude.

Aramco said it had signed a framework agreement with Rongsheng on a potential joint development to expand facilities at refining unit Saudi Aramco Jubail Refinery Company (SASREF).

Aramco and Rongsheng earlier this year reached preliminary agreements on the potential expansion. They also agree to explore the Chinese company buying a 50% stake in SASREF and for Aramco to buy up to 50% of Rongsheng’s unit Ningbo Zhongjin Petrochemical Co.

Aramco also said it reached a strategic cooperation agreement with Hengli Group that “advances talks relating to Aramco’s potential acquisition of a 10% stake in Hengli Petrochemical Co” after signing a preliminary agreement in April.
Source: Reuters (Reporting by Yousef Saba; editing by Jason Neely)