China has signed a major agreement with Saudi Arabian state-owned oil company Saudi Aramco to supply its Yunnan province with oil, which will likely travel through Burma to the southwestern Chinese region.
Aramco is the world’s most valuable company, worth somewhere between $US2.2 trillion to $US7 trillion. It announced the signing of the memorandum of understanding (MOU) with PetroChina Company Ltd., a subsidiary of China’s state-owned oil giant China National Petroluem Company (CNPC), to supply some 200,000 barrels of oil a day to the proposed Yunnan refinery that will serve as the endpoint of the trans-Burma Shwe pipeline.
The deal represents a new and very important strategic relationship between the world’s second top oil producer and what is becoming one of the top consumers that was underscored by Khalid A. Al-Falih, president and CEO of Aramco, in its press release:
“We don’t consider ourselves simply sellers of oil to China, but rather strategic partners whose many relationships in that important country are founded on mutual respect, interdependence and mutual benefit.”
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