Saudi Aramco sets up subsidiary in Beijing

Saudi Arabian Oil Company (Saudi Aramco), one of the world's largest oil and chemicals producers, announced on Tuesday it has established its wholly owned subsidiary Aramco Asia in Beijing.

According to a statement on Saudi Aramco's website, the newly established entity will deepen the company's presence in one of the world's fastest growing regions and serve as a portal for business and cultural exchange between Saudi Aramco and China.

Aramco Asia will offer services of crude oil and chemicals marketing, joint venture coordination, procurement, research and development, and project management, the statement said.

Besides the head office in Beijing, the company has also set up two branches in Shanghai and Xiamen.

"Our new Asia office here in Beijing will be a hub for facilitating our joint activities and other business opportunities in Saudi Arabia and Asia," Abdulrahman F. Al-Wuhaib, Saudi Aramco senior vice president in charge of downstream business, said at the inauguration ceremony.

Aramco Asia currently holds interests in two joint ventures in China -- Fujian Refining and Petrochemical Company and Sinopec Senmei Petroleum Company Ltd, both located in southeastern Fujian province.

China is the world's second-largest consumer of crude oil, while Saudi Arabia is China's biggest supplier.

Saudi Aramco manages the largest proven reserves of conventional crude oil, estimated at 259.1 billion barrels.