Saudi Arabia’s King Salman bin Adbulaziz Al-Saud oversaw the signing of deals worth potentially $65 billion as he began a visit to Beijing today as the world’s largest oil producer looks to cement ties with China, the world’s second-largest economy.

Deputy Chinese Foreign Minister Zhang Ming said the memorandums of understanding and letters of intent involved everything from energy to space, but he did not give details.

The monarch is on a month-long Asian tour aimed to promote investment opportunities in the Kingdom, including the sale of a stake in its giant state firm Saudi Aramco, according to media reports.

Saudi Arabia has sought to boost oil sales to China, the world’s second-largest oil market, after losing market share to Russia last year, by working mostly with China’s top three state oil firms.

Chinese President Xi Jinping told Salman in Beijing’s cavernous Great Hall of the People that his visit showed the importance he attached to relations with China. “This visit will push forward and continue to improve the quality of our relations and bear new fruit,” Xi told the media.

For Saudi Aramco, the potential investments fit with its strategy to expand its refining and chemicals portfolio in its bid to diversify assets and secure long-term agreements for its oil.

Saudi Basic Industries Corp (SABIC) and Sinopec have agreed to develop petrochemical projects in both nations. The two companies jointly run a refinery in Tinajin.

Source: www.thebig5hub.com