Saudi oil giant Aramco said on Monday it is in talks to acquire a 10% stake in China's Hengli Petrochemical (600346.SS), opens new tab, a deal which would further bolster Aramco's growing downstream presence in China.

Aramco (2222.SE), opens new tab is in talks with parent Hengli Group Co and signed a memorandum of understanding over the proposed transaction, which is subject to due diligence and regulatory approvals, Aramco said in a statement.

The potential deal "aligns with Aramco's strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements," it said.

An agreement would be the latest in a string of Aramco deals with Chinese refiners.

In January, Chinese privately-controlled refiner Rongsheng Petrochemical (002493.SZ), opens new tab, and Aramco announced they were in talks to take a 50% stake in each other's refineries in China and Saudi Arabia.

Aramco in July closed a deal valued at $3.4 billion to buy a 10% stake in Rongsheng, attached to a 20-year crude oil supply deal with Rongsheng-controlled Zhejiang Petrochemical Corp.

Aramco has also been in talks to buy a 10% stake in Shandong Yulong Petrochemical Co and last year announced plans to become a strategic investor in another private Chinese refiner Jiangsu Shenghong Petrochemical.

Aramco subsidiary SABIC said in January it will go ahead with building a petrochemical complex in southeastern China's Fujian province, expected to cost around $6.4 billion, in a joint venture with state-owned Fujian Fuhua Gulei Petrochemical.

Hengli Petrochemical owns and operates a 400,000 barrels a day refinery and integrated chemicals complex in China's Liaoning Province, as well as several facilities in the provinces of Jiangsu and Guangdong.