China Re-enforce Oil Trade Deal With Saudi Arabia In 2022

China has moved to deepen its relationship with OPEC+ heavyweight Saudi Arabia, the country’s top oil supplier for the past few years. The world’s biggest energy consumer and Saudi Arabia pledged to deepen their relationship in trade and economic cooperation through bilateral talks on Thursday, 9, December 2022.

The two parties would explore common investment opportunities in petrochemicals and enhance cooperation in renewable energy, including nuclear, and develop projects for energy supply chains, efficiency and advanced technology.

Saudi Aramco and China’s Shandong Energy signed a memorandum of understanding that included a potential crude supply agreement and chemicals products offtake deal, Aramco said on Friday.

Aramco also added that the two firms were exploring collaboration on integrated refining and petrochemicals in China.

When Xi first arrived in the kingdom, Saudi Arabia’s energy minister said Riyadh and Beijing would seek to boost cooperation in energy supply chains by establishing a regional centre in the Gulf state for Chinese factories.

Friday’s joint statement touched on enhancing the kingdom’s location as a regional centre for Chinese firms in producing and exporting energy sector products. It also raised the prospect of joint investment in energy projects in the region and “energy-consuming countries in Europe and Africa”.

Saudi Arabia’s Crown Prince Mohammed bin Salman has launched an ambitious economic development programme that includes building local capabilities across various sectors and creating new industries to reduce reliance on oil revenues.