Aramco Seeks Hengli Petrochemical Stake in Push Into China

  • Saudi oil producer begins talks to buy 10% of Chinese company
  • Hengli Petrochemical has a $15 billion current market value
Aramco branding.Photographer: Christopher Pike/Bloomberg
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Saudi Aramco started talks to buy a 10% stake in China’s Hengli Petrochemical Ltd. as it looks to secure a long-term market for its oil.

State-owned Aramco and the Chinese company signed an initial agreement to explore a potential transaction, according to a statement from the Saudi company. No financial details or a timeline were provided. The 10% stake in Hengli, based in the Chinese port city of Dalian, has a market value of $1.5 billion based on its current share price.