China’s oil and gas major Sinopec said it has been invited to invest in Aramco as part of what could be the world’s biggest-ever initial public offering.
Talks are ongoing between the companies, Wang Yupu, the chairman of the Chinese refiner, said on Monday. During a visit to China this month, Aramco’s chief executive Amin Nasser told officials he hoped the Chinese company could invest in the listing, Mr Wang said.
Saudi Arabia is preparing for the flotation by deepening relationships with its biggest buyers and locking in future demand for its oil. King Salman bin Abdulaziz led a Saudi delegation to Asia this month that saw the Middle East explorer pledge at least US$13 billion worth of investments in refining projects.
“We talked with them on the plan, and generally speaking we had a very good conversation,” Mr Wang said of the offer from Aramco, speaking during a briefing in Hong Kong. “Going forward, based on our own reality and needs, we will get into more detailed conversations with them.”
Saudi Aramco did not immediately respond to a request for comment.
China is growing more reliant on overseas crude as its domestic reserves dwindle and economic growth spurs higher demand. China’s $814bn sovereign wealth fund, China Investment, and the Sinopec rival China National Petroleum may invest in the IPO, it was reported this month.
President Xi Jinping said in a meeting with King Salman that the nations should step up energy cooperation, Xinhua News Agency reported this month, adding that the countries signed $65bn worth of memorandums of understanding during the visit.
* Bloomberg
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