TTLV: The Role of Chinese State-Owned Enterprises in Energy Security Cooperation between China and Saudi Arabia (2013–2025): A Case Study of Sinopec

INFORMATION ABOUT THE MASTER'S THESIS

1. Student's full name: Vu Minh Dung

2. Gender: Male

3. Date of birth: December 21, 2002.

4. Place of birth: Hanoi

5. Decision number for student admission:7353/QD-XHNVDecember 31, 2024, by the Rector of the University of Social Sciences and Humanities, Vietnam National University, Hanoi

6. Changes in the training process:

(Note the types of changes and the corresponding times)

7. Thesis title: The Role of Chinese State-Owned Enterprises in Energy Security Cooperation between China and Saudi Arabia (2013–2025): A Case Study of Sinopec

8. Major:International Relations; Code: 8310601.01

9. Scientific supervisor: Dr. Tran Diep Thanh; School of Interdisciplinary Sciences and Arts, Vietnam National University, Hanoi.

10. Summary of the thesis results:

This thesis focuses on researching and evaluating the role of China Petrochemical Corporation (Sinopec) as a key entity in implementing China's energy security strategy in Saudi Arabia during the period 2013–2025.

Chapter 1 of the thesis presents a multi-layered theoretical framework combining energy security theory (emphasizing value chain security and strategic self-reliance) with state-owned enterprises (SOEs) through a "cooperation and competition" model, clarifying that Sinopec's international investment decisions are not purely based on independent commercial calculations, but rather a combination of top-down state-level strategic orientation (using institutional power, structures, and implicit power) with bottom-up incentives for business profit optimization.

Chapter 2 analyzes the macroeconomic policy context and governance mechanisms of the Chinese state regarding the energy sector. Faced with soaring dependence on imported oil (exceeding 70%) and risks from the Malacca Strait, Beijing has deployed a series of policy tools such as the "Going Out" strategy and the Belt and Road Initiative (BRI), supported by persistent financing from national development banks. Within this structure, Saudi Arabia holds a leading strategic position as a supplier of oil. Through its "dual governance" mechanism, Sinopec acts as a "complex political and economic actor," simultaneously securing commercial revenue and fulfilling national security objectives.

Chapter 3 analyzes Sinopec's investment decisions, implementation mechanisms, and reciprocal impacts in the local area. The thesis presents the key YASREF joint venture project along with technical services for gas exploration drilling. Sinopec helps China ensure a stable crude oil supply, control raw material sources, and minimize maritime transport risks thanks to its strategic location in the Red Sea. At the same time, Sinopec's presence contributes positively to Saudi Arabia's Vision 2030 through technology transfer, workforce localization, and increased industrial value-added, creating a strategically interdependent relationship.

Chapter 4 presents the challenges and barriers limiting Sinopec's operations in Saudi Arabia, including regional geopolitical fluctuations (conflicts, great power competition), instability in world oil prices, and institutional barriers such as stringent legal regulations restricting access to upstream oil fields and differences in management culture. Despite facing economic pressures during periods of oil price crises, Sinopec has maintained its commitment to operations thanks to strategic state backing. The thesis concludes that this cooperation model is a prime example of China transforming economic and trade tools into means of ensuring long-term energy security.

11. Practical applications:

The practical applicability of this thesis lies primarily in providing a "dual logic" analytical framework (both cooperation and competition) that can be used to distinguish between the commercial behavior and state-strategic behavior of Chinese state-owned enterprises, applicable to national oil and gas corporations other than Sinopec. At the same time, the thesis serves as a document for researchers and policymakers when evaluating how state-backed entities operate in key markets, helping to adjust the perception that the China-Saudi Arabia relationship is truly two-way rather than one-way exploitation.

12. Future research directions:

According to the thesis, future research directions include: expanding the comparative scope of the "dual logic" theoretical framework to other national oil and gas companies in China and Saudi Arabia; conducting direct interviews with relevant stakeholders when conditions permit; tracking the evolution of this relationship over time (vertical research) beyond the current timeframe; incorporating mixed research methods such as factual analysis or econometric analysis into Sinopec's capital flows; and comparing Sinopec's contribution with other international partners in Saudi Arabia's diversification strategy.

13. Published works related to the thesis: None

INFORMATION ON MASTER'S THESIS

1. Full name: Vu Minh Dung 2. Sex: Male

3. Date of birth: December 21, 2002 4. Place of birth: Hanoi

5. Admission decision number:7353/QD-XHNVDated 31/12/2024

6. Changes in academic process:

(List the forms of change and corresponding times)

7. Official thesis title: The Role of Chinese State-Owned Enterprises in Energy Security Cooperation between China and Saudi Arabia (2013–2025): A Case Study of Sinopec

8. Major: International Relations 9. Code:8310601.01

10. Supervisors: Dr. Tran Diep Thanh, VNU School of Interdisciplinary Sciences and Arts, Vietnam National University

11. Summary of the findings of the thesis:

This study assesses the role of Sinopec (China Petrochemical Corporation) as an operational link in the practical implementation of China's energy security strategy in Saudi Arabia over the 2013–2025 period.

Chapter 1 constructs a multi-layered theoretical framework that combines energy security theory (emphasizing value-chain security and strategic resilience) with state-owned enterprise (SOE) theory through the "coopetition" model, clarifying that Sinopec's international investment decisions are not based purely on independent commercial calculation, but instead reflect a complex fusion of top-down state-level strategic direction (exercised through institutional, structural, and discreet forms of power) with bottom-up profit-maximizing motives.

Chapter 2 examines the macro-level policy context and the governance mechanisms through which the Chinese state directs the energy sector. Facing mounting import-dependence pressure (exceeding 70%) and the risks posed by the Malacca Strait, Beijing has deployed a series of policy instruments, including the "Going Out" strategy and the Belt and Road Initiative (BRI), underpinned by patient financing from national development banks. Within this structure, Saudi Arabia holds the position of China's foremost strategic oil-supply partner. Through a mechanism of "dual governance," Sinopec functions as a complex political-economic agent, simultaneously securing commercial revenue and fulfilling national security missions.

Chapter 3 provides an empirical analysis of Sinopec's investment decisions, implementation mechanisms, and bidirectional local impact. The thesis presents the flagship joint-venture project YASREF, along with engineering services related to natural gas exploration and drilling. Sinopec helps China secure a stable crude oil supply and reduce maritime transport risk thanks to YASREF's strategic location on the Red Sea. At the same time, Sinopec's presence contributes positively to Saudi Arabia's Vision 2030 through technology transfer, workforce localization, and enhanced industrial value-added, creating a relationship of strategic interdependence.

Chapter 4 identifies the challenges and constraints limiting Sinopec's operations in Saudi Arabia, including regional geopolitical volatility (conflict, great-power competition), the volatility of world oil prices, and institutional barriers such as strict regulations restricting access to upstream oil fields, as well as cross-cultural management differences. Despite economic pressures during periods of oil-price crisis, Sinopec has maintained its operational commitments owing to strategic backing from the state. The thesis concludes that this cooperation model exemplifies how China converts commercial economic instruments into a means of securing long-term energy security.

12. Practical applicability, if any:

The practical applicability of the thesis is reflected mainly in its provision of a reusable "dual-logic coopetition" analytical framework for distinguishing commercial behavior from state-strategic behavior in Chinese state-owned enterprises, one that can be applied to national oil companies beyond Sinopec. It also serves as an updated, ground-level reference for researchers and explores how state-backed entities operate in critical markets, helping to correct the perception that the China–Saudi relationship is a one-way extractive flow rather than a truly bidirectional partnership.

13. Further research directions, if any:

According to the thesis, future research directions include: extending the comparative scope of the "dual-logic" theoretical framework to other Chinese national oil companies and Saudi Arabia; conducted direct interviews with relevant officials where access becomes feasible; tracking the evolution of this relationship over time (longitudinal research) beyond the current timeframe; incorporating mixed-methods approaches such as event-study or econometric analysis of Sinopec's capital flows; and comparing Sinopec's contribution against that of other international partners within Saudi Arabia's diversification strategy.

14. Thesis-related publications: None