Saudi Arabia oil giant Saudi Aramco and China's Sinopec on Tuesday signed a framework agreement for strategic cooperation.
The agency said the agreement was one of 14 agreements and memoranda of understanding signed between Saudi Arabia and China on the first day of a state visit by Chinese President Xi Jinping to Riyadh. Xi is also scheduled to visit Iran and Egypt on his Jan. 19-23 tour.
Saudi Aramco, the world's biggest oil producer, had been in talks to acquire a stake in a China National Petroleum Corp refinery as well as retail assets, people familiar with the matter said last October - a deal that would help it sell more of its output to China amid growing competition.
The deal is estimated to be worth around $1-$1.5 billion, although final valuations, assets and stakes were subject to change, they said.
It was also reported that Saudi Arabia and China signed a memorandum of understanding to build a high energy nuclear reactor that would use gas for cooling.