Saudi Aramco, China's Norinco said to sign $10 bln refinery deal

State-run oil company Saudi Aramco has signed a framework agreement with Chinese defense conglomerate, China North Industries Group Corp (Norinco), to build a refinery and chemicals complex in northeast China, Reuters reported on Tuesday, citing sources familiar with the matter.

The planned projects, which include a 300,000-barrel per day refinery and an ethylene complex with annual capacity of 1 million tons, will be built at an estimated cost of $10.09 billion, a source said.

The agreement was signed during China's Belt and Road Forum, following a memorandum of understanding (MoU) that was signed between Norinco and Aramco earlier in March.

The investment would boost Aramco's presence in China's massive refining industry, adding to its 25 percent stake in the Fujian refinery in southeast China operated by state refiner Sinopec Corp.