Saudi Aramco to ink China's Yunnan refinery deal in 6 months, says Al-Falih

Saudi Arabian Oil Co. (Saudi Aramco), the world’s largest crude exporter, is expected to sign a final deal with PetroChina, China's second-largest state-run refiner, in six months to invest in its Yunnan refinery, Saudi energy minister Khalid Al-Falih told Reuters.

Saudi Aramco seeks to proceed with oil investments in China to become the country's biggest crude supplier, Al-Falih added.

"Yunnan talks have reached an advanced stage, we seek to finalize the deal in six months”, Al-Falih noted.

Saudi Aramco is expected to own a controlling stake in the 260,000-barrel per day Anning refinery.

Also, Aramco is seeking to invest $1 billion -1.5 billion in the refinery in addition to the retail assets of PetroChina, unnamed sources told Reuters.

PetroChina will start operations in the new refinery by next October after being delayed for more than once, which will boost the country’s crude imports.

PetroChina will consider taking part in Aramco's initial public offering (IPO) slated for next year, pending market conditions.