SHARE
Image courtesy of Saudi Aramco.

Saudi Aramco has reportedly signed a crude supply deal with a Chinese refinery firm.

Sources told Reuters that Saudi Aramco signed a crude supply deal with China-based refiner North Huajin Chemical Industries Group Corp (NORINCO).

The deal is reportedly covers 2017.

The contract is the first ever reached between Saudi Aramco and Huajin.

The sources told Reuters that Saudi Aramco will supply Arab Extra Light crude to Huajin that will allow the company to boost naphtha production.

State-owned Saudi Aramco has not commented on the matter.

According to Reuters, Huajin operated a crude refinery in the Liaoning province that can process up to 6 million tonnes per year along with a petrochemical plant that produces 700,000 of ethylene tonnes per year.

Earlier this month, Saudi Aramco reportedly selected Moelis & Company to advise the company on its highly anticipated initial public offering.

Saudi Aramco is expected to a 5 percent stake in the company’s entire business.

The kingdom’s government is expected to continue holding a majority stake in the company after the IPO is issued.

Saudi Arabian officials have said the company is targeting a 2018 listing date for the IPO.

Saudi Aramco has also reportedly tapped Gaffney, Cline and Associates to perform an audit of its reserves ahead of the IPO.

Gaffney, Cline and Associates is a unit of Baker Hughes.

Sources told Reuters last month that Saudi Aramco also asked Dallas-based DeGolyer and MacNaughton to conduct some audit work for the company, Reuters added.