Sinopec to pay state-owned parent $562m for Saudi refinery stake

Sinopec (386.HKG) will buy its state-owned parent company’s stake in a Saudi Arabia oil-processing plant for US$562 million, Bloomberg reported, citing a Hong Kong stock exchange filing by the company. After the purchase from China Petrochemical, Sinopec will own 37.5% of the refinery company Yanbu, the rest of which is owned by Saudi Aramco. China Petrochemical signed an agreement with Aramco in 2012 to develop a refinery in the Saudi city of Yanbu at a cost of as much as US$10 billion. At the time Saudi Aramco’s CEO said the 400,000 barrel-a-day plant might start production in 2014.