Saudi oil giant Aramco inks $8.5 bn deal with Sinopec to set up refinery at Red Sea port

Riyadh, Jan 16(ANI): Saudi oil giant Aramco has inked a deal with Chinese counterpart Sinopec, which will allow a major oil refinery to become operational in the Yanbu Red Sea port by 2014.

The 8.5 billion dollar deal entitles Aramco to hold 62.5 percent stake in the plant, and Sinopec to own the remaining 37.5 percent.

The project, which covers an area of about 5.2 million square meters, would process 400,000 barrels of heavy crude oil per day.

Chinese Premier Wen Jiabao said the move reflected the firm resolve by both countries to work together to safeguard common interests amid the complex global scenario.

The deal "represents a strategic partnership in the refining industry between one of the main energy producers in Saudi Arabia and one of the world's most important consumers", The China Daily quoted Aramco President Khalid Al-Falih, as saying.

Sinopec Group chairman Fu Chengyu said the project, which represents strategic cooperation between both would augment ties between China and Saudi Arabia.

A China Institute of International Studies researcher Shen Yamei said the project would promote economic development. (ANI)