(MENAFN) Aramco said it is in talks to buy a stake in China National Petroleum Corp (CNPC) refinery as well as retail assets, as such a deal would help it sell more of its output to China.
The Saudi oil producer giant said that the deal is estimated to be worth around USD1 billion to USD1.5 billion, although final valuations, assets and stakes are subject to change.
The stake sale in an established refinery marks a departure from the past for China as foreign energy firms have generally been restricted to investing in greenfield projects.
For China, the deal would ensure a steady supply of crude to feed growing demand, while providing fresh funds to cut down debt as their profits are under pressure from sliding oil prices.
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