Rongsheng Petrochemical Co Ltd in Zhejiang province and Saudi Aramco planned to buy stake in each other's units, according to a memorandum of understanding (MOU) the two sides signed on Tuesday.

The MOU is another milestone following the agreement the two parties reached in March last year, marking an important step forward in fostering cross-border investment, said Saudi Aramco.

Under the MOU, Saudi Aramco and Rongsheng are in talks for the Chinese private refiner to buy a 50 percent stake in Saudi Aramco Jubail Refinery Company (SASREF), the Saudi company's refining unit.

Meanwhile, Rongsheng is also negotiating to sell Aramco an up to a 50 percent stake in its unit Ningbo Zhongjin Petrochemical, allowing two sides to upgrade the existing facilities and jointly develop Rongsheng new materials (Zhoushan) project, it said.

The deal will help Aramco achieve its strategic goals of expanding its chemical industrial chain and provide Rongsheng with reliable feedstock and advanced technology and expertise.

zhengxin@chinadaily.com.cn