Saudi Arabia’s state oil company has suspended a deal to build a $10 billion refining and petrochemicals complex in China, according to people familiar with the matter, as the company slashes spending to cope with low oil prices.
Saudi Arabian Oil, or Aramco, decided to stop investing in the facility in China’s Northeastern province of Liaoning after negotiations with its Chinese partners, said the people, who asked not to be identified as the matter is private. The uncertain market outlook was behind the decision, they said.
Aramco declined to comment. China North Industries Group , or Norinco, one of the partners, didn’t immediately respond to an email seeking comment. No one answered a call to Panjin Sincen, the third partner, outside office hours, or responded to an email.
