China and Saudi Arabia reaffirmed the significance of global oil market stability and Riyadh's role in maintaining it, a joint statement said on Friday during Chinese President Xi Jinping's visit to the kingdom, the world's biggest oil exporter.
OPEC+ heavyweight Saudi Arabia is the top supplier for China, the world's biggest energy consumer, and the two sides had pledged in bilateral talks on Dec. 8 greater trade and economic cooperation as they move to deepen relations.
The OPEC+ oil producers alliance that includes Russia kept output unchanged at its last meeting on Dec. 4 as markets struggle to assess the impact of a G7 price cap on Russian oil and a slowing Chinese economy.
"The People's Republic of China welcomed the Kingdom’s role as a supporter of the balance and stability in the world oil markets, and as a reliable major exporter of crude oil to China," the joint statement carried on Saudi state media said.
It said the two sides would explore common investment opportunities in petrochemicals and enhance cooperation in renewable energy, including nuclear, and develop projects for energy supply chains, efficiency and advanced technology.
Saudi Aramco and China's Shandong Energy signed a memorandum of understanding that included a potential crude supply agreement and chemicals products offtake deal, Aramco said on Dec. 9.
It added that the two firms were exploring collaboration on integrated refining and petrochemicals in China.
When Xi first arrived in the kingdom, Saudi Arabia's energy minister said Riyadh and Beijing would seek to boost cooperation in energy supply chains by establishing a regional center in the Gulf state for Chinese factories.
Dec. 9's joint statement touched on enhancing the kingdom's location as a regional center for Chinese firms in producing and exporting energy sector products. It also raised the prospect of joint investment in energy projects in the region and "energy consuming countries in Europe and Africa."
Saudi Arabia's Crown Prince Mohammed bin Salman has launched an ambitious economic development program that includes building local capabilities across various sectors and creating new industries to reduce reliance on oil revenues.
Recommended Reading
The New Minerals Frontier Expands Beyond Oil, Gas
2025-04-09 - How to navigate the minerals sector in the era of competition, alternative investments and the AI-powered boom.
XCL Resources Team Launches X2, Targets Multibillion-Dollar M&A
2025-04-24 - X2 Resources, led by the team behind XCL Resources, is targeting $500 million to multibillion-dollar acquisitions across “premier” oil and gas basins with backing from EnCap and other investors.
Terra Team Launches New E&P with $300MM in Kayne Anderson Backing
2025-06-03 - Team members from Terra Energy Partners, a major Piceance Basin gas producer, are launching Terra II with backing from Kayne Anderson.
USEDC’s Plans for $1B in Capex, M&A on Track as Oil Prices Stumble
2025-04-11 - Volatility won’t affect Permian Basin-focused U.S. Energy Development Corp.’s day-to-day operations or its plans for deals, CEO Jordan Jayson told Hart Energy.
Waterous Raises $1B PE Fund for Canadian Oil, Gas Investments
2025-04-01 - Waterous Energy Fund (WEF) raised US$1 billion for its third fund and backed oil sands producer Greenfire Resources.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.