Saudi Arabian Oil Co (Aramco) stated Thursday it had accomplished the acquisition of a 22.5 p.c stake in Rabigh Refining and Petrochemical Co (Petro Rabigh) from Sumitomo Chemical Corp for $702 million or SAR 7 ($1.9) per share.
The transaction has elevated the state-owned oil big’s possession in Petro Rabigh to 60 p.c. Tokyo-based Sumitomo retains 15 p.c.
“The transaction displays Aramco’s dedication to its companions and, because it forges forward with a downstream technique that promotes worth creation, enterprise integration and portfolio diversification”, Aramco stated in a press release on its web site.
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“The transaction additionally enhances Aramco’s skill to help the transformation program underway at Petro Rabigh, which incorporates focused asset upgrades to enhance the yield of high-margin merchandise and improve plant reliability”.
Petro Rabigh produces 14.9 million metric tons every year (MMtpa) of refined merchandise and 4.9 MMtpa of petrochemical merchandise, Petro Rabigh says on its web site.
As a part of the transaction, Aramco and Sumitomo agreed to inject $1.4 billion to prepay a part of Petro Rabigh’s debt. The capital will come from Petro Rabigh’s issuance of Class B shares to be totally subscribed to by Aramco and Sumitomo.
“Via the Class B share issuance, Aramco and Sumitomo will be capable of inject recent capital with out altering Petro Rabigh’s present governance construction or diluting the voting energy of Petro Rabigh’s different shareholders”, Aramco stated.
Additionally beneath the transaction, Aramco and Sumitomo had waived $1.5 billion in shareholder loans to Petro Rabigh, accomplished in two phases in August 2024 and January 2025, Aramco stated.
Aramco senior vp for fuels Hussain A. Al Qahtani stated, “Petro Rabigh is a key participant within the kingdom’s downstream sector and this extra funding by Aramco displays sturdy perception in its long-term prospects”.
“We stay up for exploring nearer integration with Petro Rabigh, with the purpose of unlocking new alternatives and complementing Petro Rabigh’s broader transformation goals, which embody upgrading its product combine, enhancing asset reliability and optimizing operations”, Al Qahtani added.
Earlier this 12 months Aramco accomplished the acquisition of a 50 p.c stake in Blue Hydrogen Industrial Gases Co (BHIG), with Air Merchandise Qudra retaining the remaining half.
BHIG will assist set up a hydrogen community within the Japanese Province and help a carbon seize and storage (CCS) hub Aramco is constructing within the metropolis of Jubail, Aramco stated in a press release March 24 asserting the completion of the deal. BHIG’s manufacturing will embody pure gas-derived hydrogen with emissions captured and saved, Aramco stated.
“BHIG is predicted to start business operations to provide blue hydrogen in coordination with Aramco’s carbon seize and storage actions in Jubail”, Aramco stated.
Elsewhere in its downstream growth, Aramco early in 2025 agreed to purchase 25 p.c in retail community operator Unioil Petroleum Philippines Inc. Aramco plans to make use of the Filipino firm to market its model and retail choices together with Valvoline lubricants within the Southeast Asian nation.
The acquisition “goals to capitalize on anticipated progress of the high-value fuels market within the Philippines”, Aramco stated in a press launch February 19.
Unioil has over 175 retail stations throughout the archipelago, Unioil says on its web site.
To contact the creator, e-mail jov.onsat@rigzone.com
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