SAUDI ARABIA - China.Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. has equity in the refinering business in China, which is to become a major market for the company. Chinese oil imports are expected to rise to more than 50m t/y by 2000 from 22m in 1996. During a visit to the kingdom by Chinese President Jiang Zemin Jiang Zemin (jyäng` zŭ`mĭn`), 1926–, Chinese government official, general secretary of the Chinese Communist party (1989–2002) and president of China (1993–2003), b. Jiangsu prov. on Nov. 1, 1999, the two governments signed several co-operation agreements including a contract raising Saudi Aramco's crude oil sales to Beijing and a deal on a joint oil refinery to be built in China. Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. is
China's biggest trading partner in the Middle East and North
Africa, and two-way trade in 1998 amounted to $1.7 bn.
Beijing considers Saudi Arabia an ideal source for oil imports, in view of supply security considerations, among other things. China needs more refineries or it will have to continue importing oil products. Saudi Aramco is studying this market, with refining ventures discussed since the early 1990s. It is the only OPEC OPEC: see Organization of Petroleum Exporting Countries. OPEC in full Organization of the Petroleum Exporting Countries Multinational organization established in 1960 to coordinate the petroleum production and export policies of its NOC (Network Operations Center) A central or regional location for monitoring a large network. Also called a "network management center" (NMC), "service management center" (SMC) or "network control center" (NCC), a NOC may be used to manage a large enterprise network, to have invested in Chinese refining. In 1995 Saudi Aramco bought a 45% interest in a small refinery at Thalin in north-east China. In early 1998, Saudi Aramco, Exxon and Fujian Petrochemical Co. signed an agreement to conduct a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. for expansion of a 80,000 b/d refinery at Fujian in south-east China. The plan is to raise its capacity to 240,000 b/d and have a related 600,000 t/y ethylene cracker built there. This will be a JV between the three. Saudi Aramco has for years been seeking a 50% stake in the 170,000 b/d Maoming refinery in Guangdom province on the coast, which is to be expanded to 270,000 b/d by 2000. Saudi Aramco has had protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. talks with Beijing for a new 200,000 b/d refinery to be built at Quingdao, in Shandong province, with its South Korean partner Ssangyong to be involved. The State Planning Commission approved the $2 bn project in 1994. Aramco was to have 45% in the JV, with Ssangyong to hold 15% and the rest to be held by Sinochem and the Quingdao municipality. Saudi Aramco has also had discussions for a refinery to be built at Koingto, in eastern China, and crude oil supply for a 100,000 b/d refinery in Dalian as a JV between TotalFina of France and the Chinese government. |
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