Deal Aligns With Energy Company’s Downstream Expansion Plans
Saudi Aramco has become the majority shareholder in the Petro Rabigh refinery and petrochemical complex in Saudi Arabia after purchasing an additional 22.5% stake in the business from Japan’s Sumitomo Chemical for US$702 million.
Petro Rabigh, located on Saudi’s Red Sea coast north of Jeddah, was previously owned equally by Aramco and Sumitomo with a 37.5% stake each. The deal will see Aramco’s stake rise to 60% and Sumitomo’s fall to 15%.
The agreement, subject to regulatory approval, is part of a package of measures designed to boost Petro Rabigh’s financial position. Aramco and Sumitomo have pledged to invest in the project and explore opportunities to upgrade the 400,000-bpd refinery.
“Aramco continues to identify opportunities to strengthen its downstream value chain, secure placement of its upstream crude oil with affiliated refineries and convert more of its hydrocarbons into high-value materials,” said Hussain A. Al Qahtani, senior vice president of fuels at Aramco.
“By increasing our shareholding, we expect to achieve even closer integration with Petro Rabigh and facilitate its turnaround strategy. We look forward to building on our existing relationship with Petro Rabigh, in alignment with our strategic goals.”
Aramco said the deal aligns with its downstream expansion plans and Sumitomo Chemical’s move away from commodity chemicals toward specialty chemicals.
Saudi Aramco is a member of the Breakbulk Global Shipper Network. The next in-person meet-up for BGSN members will be at Breakbulk Americas 2024 on 15-17 October at the George R. Brown Convention Center in Houston.
