Saudi Aramco shifts strategy in China to boost oil sales

Rising Russian and U.S. competition has pushed Saudi Aramco to find new buyers for its oil in China, encouraging a shift toward independent refiners and newcomers to the business. It reflects a new strategy for the Saudi Arabian oil giant after years of dealing almost exclusively with major state-owned Chinese energy firms, industry sources say. But the change in tack may not offer the same returns. Aramco's new partners lack the scale and marketing reach of PetroChina and Sinopec Corp, the state-run firms that dominate China's refining, petrochemical and retail fuel business, analysts say. Aramco had been talking to PetroChina for years about a refining venture in Yunnan province in the southwest, but industry sources said the plans had been effectively shelved due to poor economics and disagreement over marketing rights.