China proposes to acquire a 5% stake in Saudi Aramco directly

Sources say China is proposing a direct purchase of 5% stake in Saudi Arabian National Oil Company (Saudi Aramco), which could give Saudi Arabia the flexibility to take into account various options for the Saudi Aramco listing program. Saudi Aramco is the world's largest producer of crude oil.

Industry sources told Reuters that China's state-owned oil company, China National Petroleum Corporation (0857.HK) and China Petroleum & Chemical Corporation (0386.HK), have sent a letter to Saudi Aramco in recent weeks to express Direct deals are interested. Sources said the companies are part of a state-owned consortium, including China's sovereign wealth fund.

"Chinese people want to protect the oil supply," one of the industry sources said. "They are willing to win the whole 5%, or even more."

PetroChina and Sinopec did not comment.