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Saudi Aramco plans to increase investment in Chinese market

As the global economic landscape continues to change and energy demand grows, the Saudi energy giant is actively seeking new paths for economic diversification and energy transformation

As the global energy market becomes increasingly competitive, major oil companies are looking for new development opportunities.

His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia

Recently, international energy giant Saudi Aramco announced its financial report for the year 2023, and the data showed that despite failing to surpass the record profit level set in 2022, the company still achieved a net profit of $121.3 billion, the second highest in history.

Coinciding with the release of the financial report, Amin Nasser, President and CEO of Saudi Aramco, revealed that the company is actively seeking investment opportunities in the Chinese market.

This "tactical" move not only highlights the importance the Saudi company attaches to the Chinese market, but also reflects its strategic thinking of globalization and diversification.

Last year, Saudi Aramco established a joint venture in China, Huajin Aramco Petrochemicals Co Ltd, and started construction of a large-scale refining and chemical complex, which is expected to be fully operational by 2026.

In addition, in September this year, Saudi Aramco announced plans to acquire a 10 percent strategic stake in each of Dongfang Shenghong and Shandong Yulong Petrochemicals to consolidate its position as a long-term supplier of crude oil to downstream refineries in China.

China is the world's largest importer of crude oil, and for Saudi Aramco it is not only an important market for its crude, but also an important partner in seeking diversified investment and cooperation, said Mutib Al-Khalbi, head of Saudi Aramco Asia.

In fact, the Saudi firm is not only engaged in crude oil trading, but also actively invests in China's downstream industries, particularly in refining and chemical integration projects, in order to achieve broader market coverage and greater value creation.

Industry experts point out that Saudi Aramco's increased investment in China's energy industry chain has undoubtedly brought great encouragement and opportunities for local governments and the petrochemical industry in provinces and coastal cities.

As for Saudi Aramco itself, with the continuous changes in the global economic model and the increasing demand for energy, economic diversification and energy transformation have become an urgent task.

During the results video conference, Saudi Aramco CEO Nasser further highlighted the company's structure and plans in the new energy sector.

He said his company is actively exploring new energy sectors and technologies to drive the company's economic diversification and sustainable development. These include LNG, international retail business, overseas refining and chemical projects, and the portfolio of new energy products that represent the company's future development direction and priorities.

In addition, Nasser noted that the current energy transition requires more realistic and sound plans. In his view, while advancing the deployment of new energy sources, the demand for thetraditional sources still exists and will persist for some time to come. Investment should therefore focus more on innovation and technology to further reduce the carbon footprint of traditional energy sources and achieve more sustainable development.

Earlier this year, the company announced that it had allocated additional funds for its venture capital organizations to increase investment in companies engaged in disruptive technologies outside the energy sector. This initiative will not only help promote the development and application of new energy technologies, but also give new impetus to Saudi Aramco's economic diversification and sustainable development.

In its financial report for fiscal year 2023, Saudi Aramco demonstrated its strong profitability and investment disposition in the Chinese market.

Going forward, Saudi Aramco will continue to maintain its leading position and actively explore new development opportunities and challenges as the global energy market continues to change and new energy technologies develop rapidly.

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