DHAHRAN, Saudi Arabia -- Saudi Aramco and China Petrochemical Corp. (Sinopec Group) have signed a Memorandum of Understanding (MOU) to increase cooperation between the two companies and to strengthen their relations and business development opportunities.
The MOU was signed by Saudi Aramco president and CEO Abdallah S. Jum'ah and Sinopec president Su Shulin, reaffirming the companies' interest in exploring further opportunities that support their current joint ventures and strategic cooperation.
The MOU aims to revitalize the relations between Saudi Aramco and Sinopec, reflecting both China's view of the crucial role of Saudi oil in the world as well as the Kingdom's view of China's crucial role in the global economy.
The crude oil trade between the two parties has been steadily increasing. In 2007, Sinopec imported nearly 23 million tons (20.9 million metric tons) of crude oil from Saudi Aramco at an average of 460,000 b/d.
With the current expansion of Fujian Refinery, Sinopec will be looking this year to import 32.4 million tons (29.4 million metric tons) at an average of 650,000 b/d.
It is expected that by 2010, the average rate will increase to 1 MMb/d, as per an MOU in 2006. By 2015, the rate is to reach 1.5 MMb/d.