Aramco, Sinopec sign oil supply agreement
Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 24 -- Saudi Aramco Pres. and Chief Executive Abdallah S. Jum'ah and Sinopec Group Pres. Chen Tong Hai have signed a memorandum of understanding committing Aramco to supplying Sinopec and its affiliates with 1 million b/d of Arabian crude by 2010.
Sinopec and Aramco also reemphasized their interest in expanding their long-term business relationship.
The memorandum focuses on commercial and technical aspects of the companies' collaboration in the areas of crude processing and commercial storage, natural gas exploration and production, petroleum products, and petrochemicals derivatives.
The MOU also covers the countries' joint developments in China: the Fujian Refining and Ethylene Project and the Qingdao Refinery Project.
Aramco and Sinopec agreed to establish the Fujian Ethylene Joint Venture and the Fujian Marketing Joint Venture this year. They agreed that the Refining and Ethylene Integrated Project would begin production by early 2009.
For the Qingdao Refinery Project, the companies agreed to further their joint efforts to reach agreement on terms for Aramco's participation and to meet the plant's on stream date of 2008.
Contact Eric Watkins at [email protected].