#mou

Tuesday, January 27, 2026 5:34 AM UTC
China’s leading electric vehicle manufacturer BYD and U.S. energy giant Exxon Mobil are set to deepen their collaboration in hybrid technology, marking another step in the evolving relationship between the global automotive and energy sectors. According to a statement released by BYD on Tuesday, the two companies have entered into a long-term strategic Memorandum of Understanding (MoU) aimed at expanding cooperation across multiple technology-driven areas.

The agreement, signed on Monday, focuses on joint efforts in customized product research and development, as well as collaboration in the application of new materials. This partnership reflects the growing demand for advanced hybrid and plug-in hybrid electric vehicle (PHEV) solutions as automakers seek to balance performance, efficiency, and sustainability. By combining BYD’s expertise in electric and hybrid vehicle manufacturing with Exxon Mobil’s deep experience in energy products and materials science, the collaboration is expected to accelerate innovation in next-generation automotive technologies.

This is not the first time the two companies have worked together. Last year, BYD and Exxon Mobil jointly launched a specialized engine oil designed specifically for BYD’s plug-in electric vehicles. The product was developed to meet the unique requirements of hybrid powertrains, including improved lubrication, enhanced engine protection, and optimized performance under frequent start-stop driving conditions common in PHEVs. The launch highlighted how traditional oil companies are adapting their product portfolios to remain relevant in an increasingly electrified automotive market.

The expanded partnership underscores a broader industry trend where electric vehicle manufacturers and oil majors collaborate rather than compete, especially in hybrid technology, advanced materials, and efficiency-enhancing solutions. As global regulations tighten around emissions and fuel efficiency, hybrid vehicles continue to play a critical transitional role between conventional internal combustion engines and fully electric vehicles.

For BYD, the collaboration strengthens its supply chain and technological capabilities as it continues to expand both domestically and internationally. For Exxon Mobil, the partnership provides an opportunity to align with one of the world’s fastest-growing electric vehicle makers while developing products tailored to the evolving mobility landscape. Together, the two companies aim to explore innovative solutions that support cleaner transportation without compromising performance or reliability.

https://www.econotimes.com/BYD-and-Exxon-Mobil-Strengthen-Hybrid-Technology-Partnership-1731950

Aramco and ExxonMobil Plan Major Upgrade to Transform SAMREF Refinery into Integrated Petrochemicals Complex

Saudi Aramco has recently taken significant steps toward upgrading the SAMREF refinery, a 50:50 joint venture between Saudi Aramco and ExxonMobil, located in Yanbu, on Saudi Arabia’s Red Sea coast.

It is one of the Middle East’s leading and most sophisticated refineries, processing over 400,000 barrels per day (b/d) of Arabian Light crude oil. It is one of the oldest and largest refineries in the Kingdom, exporting products to Europe, North America, and Asia. The refinery previously underwent a clean fuels upgrade in 2014 to reduce sulfur content in its products. The refinery is notable for its high yield of gasoline and distillate products, exceeding 80% per barrel—higher than many comparable refineries. Its product mix can be adjusted to meet seasonal or market-specific demands, reflecting its processing flexibility.

Key Developments:

MoU with ExxonMobil: In May 2025, Aramco and ExxonMobil signed a memorandum of understanding (MoU) to evaluate a significant upgrade of the SAMREF refinery. The planned upgrade aims to transform the facility from a conventional oil refinery into a world-class integrated petrochemicals complex. This move is part of Aramco’s broader strategy to increase the value derived from its crude oil by expanding into high-value petrochemicals.

Strategic Objectives: The SAMREF upgrade is a core component of Aramco’s $100 billion liquids-to-chemicals program, which seeks to convert up to 4 million barrels per day of crude oil into petrochemicals and chemical feedstocks by 2030. This initiative is central to Saudi Arabia’s ambition to maximize economic returns from its hydrocarbon resources and diversify its downstream portfolio.

Scope of Upgrade: The envisioned project involves adding a mixed-feed cr--ker to the existing refinery, enabling the production of a broader range of petrochemical products. This would align SAMREF with other major Aramco projects, such as the planned expansions at the SASREF and Yasref refineries, which are also being converted into integrated refining and petrochemical complexes

Recent Announcements:

The MoU was signed during the Saudi-US Investment Forum in Riyadh in May 2025, underscoring the importance of international partnerships in Aramco’s downstream expansion plans.

Aramco’s CEO Amin Nasser reported that, as of the end of 2024, the company had achieved 45% of its liquids-to-chemicals program target, with ongoing progress at SAMREF and other key sites.

This latest development comes on the heels of Aramco’s recent announcements of other mega-project transformations, including the $10 billion expansion of the SASREF refinery (to add 400,000 b/d of petrochemicals capacity) and the $7 billion upgrade of the Yasref refinery (to integrate a 2.5 million-ton-per-year ethylene cr--ker). These projects are part of Aramco’s broader $100 billion liquids-to-chemicals program, which aims to shift its downstream focus from fuels to high-value chemicals.

Mohammed Al-Qahtani, Aramco’s downstream president, previously explicitly affirmed the 4 million b/d target in a 2024 statement:

“The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.”

However, as industry analysts, while recognizing the impressive scale of the recently announced petrochemical transformation projects, we must caution this ambitious 4 million b/d target faces significant hurdles:

To put things in perspective, 4 million b/d of crude oil—corresponding to approximately 200 million tonnes/year—is equivalent to about half of today’s global plastics market, which would require unprecedented speed and scale in petrochemical conversion project execution.

Critically, full-barrel conversion technology—which would enable near-total transformation of crude oil into chemicals without producing fuels—does not yet exist at commercial scale. Current state-of-the-art refineries convert only 15–20% of each barrel to chemicals, with the rest yielding fuels.

S-Oil's Shaheen project employing TC2C technology developed by Saudi Aramco Technology Company (SATC) is presently about half-way complete and has a scheduled oil uptake capacity of 2.3 million tonnes of Arab Light, corresponding to 1.15% of the stated objective.

Aramco’s timeline (less than six years to 2030) would also require parallel delivery of many more mega-projects than those recently announced, each typically requiring 5–7 years to complete, to reach this upper target.

https://portfolio-pplus.com/Communicator/Details/3845#:~:text=MoU%20with%20ExxonMobil%3A%20In%20May%202025%2C%20Aramco%20and,oil%20refinery%20into%20a%20world-class%20integrated%20petrochemicals%20complex.

xxon Mobil (XOM) is reportedly planning to re-enter Iraq after exiting in early 2024 by signing agreements to lay the groundwork for exploring the country’s vast Majnoon field.

According to a Bloomberg News report, citing a person familiar with the matter, the oil major plans to sign a heads of agreement with Basra Oil Co. and SOMO, Iraq’s oil marketing company, in the coming days. The report further stated that the deal will include discussions on export infrastructure and potential oil marketing projects in the southern part of the country.

Despite being one of the first Western oil firms to be allowed into Iraq following the toppling of Saddam Hussein’s government, Exxon's operations in the West Asian country have often been marred by major political standoffs, security risks, and contractual disputes. Exxon sold its primary investment in the country, a stake in the West Qurna-1 oil field in southern Iraq, in January 2024.

Retail sentiment on Stocktwits about Exxon was in the ‘neutral’ territory at the time of writing.

Majnoon, located 60 km (37 miles) from Basra in southern Iraq, is one of the biggest oil fields in the world with an estimated reserve of 38 billion barrels. However, Western oil firms have struggled to agree on profit-sharing terms with the Iraqi government, with a prominent example being Shell’s exit from the field in 2017.

The Bloomberg report stated that Exxon would need to complete a series of commercial and technical studies and agree to a production-sharing contract before it begins pumping oil, a process that could take years.

Exxon stock has gained 5.5% this year. Earlier this week, the company stated that it anticipates higher refining margins will boost its third-quarter earnings by $300 million to $700 million, compared to the previous quarter.

However, the Texas-based firm also flagged that restructuring costs could lower its earnings by $400 million to $600 million. The company said last week that it is laying off 2,000 workers amid a decline in oil prices.

https://www.msn.com/en-us/money/markets/exxon-eyes-return-to-iraq-plans-to-explore-majnoon-oil-field-report/