Chinese leader ends Saudi visit

By Kim Ghattas
BBC News, Beirut

President Hu Jintao signed deals on energy, security, defence and health

China's president Hu Jintao has ended a three-day state visit to Saudi Arabia.

The Chinese leader's visit to the desert kingdom was all about trying to secure energy sources for development and can be considered a success.

He signed a series of agreements in the fields of energy, security, defence and health among others.

Mr Hu, accompanied by the Saudi oil minister Ali al-Nuaimi, visited the headquarters of Sabic, Saudi Basic Industries Corporation.

Sabic is the world's most profitable petrochemical firm.

The two sides discussed a plan to establish a $5.2bn (£2.9bn) refinery and petrochemical project in north-eastern China.

The deal is not finalised yet but is said to be on track.

Strategic reserve

Mr Hu also visited the headquarters of Saudi Arabia's state oil firm, Aramco, in the eastern oil hub of Dhahran.

Saudi media reported that Aramco and Sinopec, China's top refiner and petrochemical producer, signed an unspecified memorandum of understanding on trade co-operation.

Sinopec is already drilling for gas in the Saudi desert while Aramco is involved in refinery joint ventures in China.

It has also been reported that President Hu and King Abdullah discussed a proposal to set up a strategic reserve of Saudi oil in south-east China to be used by Beijing in case of emergency.

This would be on top of the oil that Saudi Arabia already exports to China for its daily needs.

The Chinese and Saudis also signed a security agreement and a contract on defence systems, but no details were given.