Saudi Arabia’s state oil company Aramco suspends 10 bn dollar China oil refinery project

Saudi Arabia’s state oil company Aramco has suspended a deal to build a 10 billion dollar refining and petrochemicals complex in China. Aramco decided to stop investing in the facility in China’s Northeastern province of Liaoning due to uncertain market outlook.

The oil-price crash and Corona’s impact on energy demand have changed the calculations for energy companies’ projects around the world. Aramco plans deep cuts to its capital spending as it tries to maintain a 75 billion dollar dividend amid low crude prices and rising debt. The kingdom — Aramco’s main recipient of those dividends — is suffering a major squeeze on its public finances.

The joint venture was signed when Crown Prince Mohammed bin Salman was in Beijing in February last year.