Aramco acquires additional 22.5% of Petro Rabigh

Aramco has reached a definitive agreement to acquire an additional 22.5 per cent stake in Petro Rabigh for $702 million, increasing its shareholding to approximately 60 per cent. The deal, subject to regulatory approvals, will make Aramco the largest shareholder in the Saudi refining and petrochemical complex. Currently, both Aramco and Sumitomo Chemical each hold 37.5 per cent of Petro Rabigh’s shares.

After the acquisition, Sumitomo Chemical will retain a 15 per cent stake. The transaction includes a commitment to inject $1.4 billion into Petro Rabigh to bolster its financial position and support its turnaround strategy. This includes matching contributions from Aramco and Sumitomo Chemical, as well as a phased waiver of $1.5 billion in shareholder loans.

The financial measures aim to enhance Petro Rabigh’s balance sheet and liquidity, with further plans to upgrade the refinery to improve profitability. This move aligns with Aramco’s downstream expansion strategy and Sumitomo Chemical’s shift towards specialty chemicals.

Hussain A. Al Qahtani, Aramco’s Senior Vice President of Fuels, highlighted that the increased shareholding will strengthen Aramco’s integration with Petro Rabigh and support its strategic goals. Moreover, Seiji Takeuchi, Sumitomo Chemical’s Senior Managing Executive Officer, noted that the transaction supports both companies’ strategic directions and will significantly improve Petro Rabigh’s financial health.

Attribution: Sumitomo Chemical, Aramco joint statement released on Wednesday