Saudi Aramco hires Deutsche Bank for CNPC deal: report

Saudi Arabian Oil Co. (Saudi Aramco) has hired Deutsche Bank to advise it on a potential acquisition of some marketing, retail and refining assets from China National Petroleum Corp. (CNPC), Bloomberg reported, citing informed sources.

The kingdom-based energy giant is looking to boost ties in Asia at it expands into refining and petrochemicals.

The CNPC deal, still in its early stages, could be worth several billion dollars, the sources added, while Saudi Aramco was said to have set aside at least $70 billion for overseas acquisitions in the upcoming five years.

In May, the world’s largest oil exporter secured a $10 billion revolving credit facility with a number of international and Middle Eastern banks, which is believed to be used in the future for deals and other investments.

China’s government has recently urged state enterprises to open up their businesses to foreign investors as a means of stimulating its economy, which is set to see its slowest growth in 25 years.

Last month, Saudi Aramco formed a $3.1 billion synthetic rubber joint venture with Germany’s Lanxess AG. It also previously acquired a $2 billion stake in S-Oil Corp., South Korea’s third-largest oil refiner.