Sinochem Xingzhong Oil Staging (Zhoushan) Co in Aoshan Island, Zhoushan, with a capacity of handling 40 million metric tons of oil every year, is currently the largest commercial oil transferring base in China. [Photo/IC] 

The global oil giant Saudi Arabian Oil Co, or Saudi Aramco, is seeking to tap the oil market in Zhejiang, East China, with three memorandums of understanding (MoUs) recently signed in Beijing to expand its downstream businesses in the province.

The MoUs will significantly contribute to the oil industrial chain development in the Zhejiang (Pilot) Free Trade Zone (FTZ) in Zhoushan, as well as the city's international green petrochemical base construction. 

According to the agreements, Saudi Aramco will purchase nine percent of the shares of the Zhoushan-based Zhejiang Petrochemical Co (ZPC) from the municipal government of Zhoushan, provide long-term crude oil supply for ZPC and take advantage of ZPC's oil storage facilities to serve Asian customers, while co-establishing an oil retailing network with Zhejiang Energy Group to distribute ZPC's refined oil.

"These agreements showcase our commitment to the Chinese market and help boost our downstream businesses in Asia. They will also strengthen our ties with Zhejiang province and the entire nation, and lay a good foundation for our further cooperation," said Amin Nasser, president and CEO of Saudi Aramco. 

Saudi Aramco, the State oil company of Saudi Arabia, is the world's largest oil producer and sixth largest oil refiner, producing one eighth of the world's crude oil. 

It revealed its plan to have a stake in ZPC at the second International Petroleum and Natural Gas Enterprises Conference held in Zhoushan last October. 

The Zhejiang FTZ, located in Zhoushan, is to be built into one of the world's largest oil and chemical product bases. Since ZPC is also based in Zhoushan Saudi Aramco's investment will facilitate its oil business in the Chinese market. 

ZPC is a privately controlled mixed ownership company that was established in June 2015. Its refining-chemical integration project for producing 40 million metric tons of petrochemicals per year is currently the largest of its kind in China being developed by a private company.