Saudi Arabia-based oil giant Aramco and China will co-operate to develop new technologies and fight climate change, media reports said. Saudi Aramco has pledged a 50-year partnership with China.
In this regard, Aramco chief executive officer Amin Nasser said during the2021 China Development Forum, “Ensuring the continuing security of China’s energy needs remains our highest priority – not just for the next five years but for the next 50 and beyond.
“To help China meet its innovation, modernization, and sustainability goals, Aramco’s Research Center in Beijing is already working with Chinese universities and companies in areas such as cleaner engine-fuel systems of the future, catalytic crude-to-chemicals technology, and focusing heavily on reducing and removing greenhouse gas emissions.”
Recently, the CEO also said that he expects oil demand to increase in 2021. He said that the company is pleased that there are signs of a recovery. Hence he expects this to continue as governments and authorities around the world reopen economies.
Recently, Aramco also a 44.4 percent slump in net profit for 2020 as a result of weak demand for oil amid the coronavirus pandemic. This means now Aramco will also cut its capital expenditure.
In this regard, Hasnain Malik, head of equity research at Tellimer told the media, “The dividend is in line with expectations, which is what holders of Aramco will care about most, but lower capex implies the company does not expect high oil prices to last for the long-term.”