MOU Signed for Refinery in Yunnan, China

Aramco Overseas Company B.V., a subsidiary of Saudi Aramco, and PetroChina Company Limited, a subsidiary of CNPC, signed on March 17, 2011, a Memorandum of Understanding related to the planned development of a 10 million metric tons per annum (200,000 barrels per day) grassroots full conversion refinery in Yunnan Province in the People’s Republic of China .

The proposed refinery will be designed to process 200,000 bpd of Arabian crude oil and will produce high-quality refined products, such as ultra low-sulfur gasoline and diesel that meet current and future China products specifications.

The project represents an opportunity for Saudi Aramco to partner with CNPC, a leading Chinese petroleum company, to support growing demand for high quality refined products and capture an investment opportunity in China ’s promising refining industry. Additionally, it enhances a strategic partnership of close cooperation between a major producer and a major consumer of hydrocarbons while also presenting an opportunity for additional energy security and increased industrialization in the inner part of China .

“This agreement is a significant step forward in our expanding relationship with CNPC and in our global downstream strategy,” said Khalid A. Al-Falih, Saudi Aramco's President and Chief Executive Officer. “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. We are proud to contribute to China 's steady economic growth and continued social development through our strategic long term investment and reliable supply of energy.”

"As the national oil company of the world's largest developing country, CNPC joins hands with Saudi Aramco to establish a long term, stable and reliable partnership between the two companies," Jiang Jiemin, President of CNPC said.

Saudi Aramco will supply the project company with up to 200,000 barrels per day of Arabian crude oil via a long-term contract while PetroChina will contribute its refined products retail network assets in the targeted market to the project company.

About Aramco Overseas Company B.V.
Aramco Overseas Company B.V. (AOC) is a subsidiary of the Saudi Arabian Oil Company (Saudi Aramco), based in The Hague , the Netherlands . AOC operates primarily in Europe, Asia, Australia and Africa , providing its affiliates in the Saudi Aramco global oil and gas enterprise with a wide range of services including finance support, supply chain management, technical support services and a variety of administrative support services. For more information, please visit http://www.aramcooverseas.com/en.

About Saudi Aramco
Owned by the Saudi Arabian Government, Saudi Aramco is a fully-integrated, global petroleum enterprise and a world leader in exploration and producing, refining, distribution, shipping and marketing. The company manages the largest proven reserves of conventional crude oil, 260.1 billion barrels, and the fourth-largest gas reserves in the world, 275.2 trillion cubic feet. For more information, please visit www.saudiaramco.com.

About PetroChina
PetroChina Company Limited (http://www.petrochina.com.cn) is the largest oil and gas producer and distributor, in China . It is one of the largest companies in China by revenue, and one of the largest oil companies in the world. PetroChina was established as a joint stock company with limited liabilities by China National Petroleum Corporation on November 5th, 1999. With its headquarters in Beijing , PetroChina is China 's biggest oil producer and as of September 2010 is the world’s largest company by market value. Traded in Hong Kong and New York , the mainland enterprise announced its plans to issue stock in Shanghai in November 2007 and following its debut on the Shanghai index its market value has tripled, making PetroChina the first company to reach a trillion dollar market capitalization. The company employs around 540,000 people and has a turnover of around $157 billion.

About CNPC
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a globally reputed contractor in engineering construction, with businesses covering petroleum exploration & production, natural gas & pipelines, refining & marketing, oilfield services, engineering construction, petroleum equipment manufacturing and new energy development, as well as capital management, finance and insurance services. For more information, please visit http://www.cnpc.com.cn/en/.

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