Saudi Aramco has acquired an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical Corporation for USD 702 million, Aramco announced on Thursday.
The deal makes Aramco the largest shareholder in the refining and petrochemicals firm, bringing its total stake to 60%, and enhances the Saudi giant’s ability to support an ongoing transformation programme at Petro Rabigh. Sumitomo retains a 15% interest following the transaction, which was first announced in August 2024.
Petro Rabigh’s overhaul aims to improve the plant’s operational reliability and includes asset upgrades to boost the output of higher-margin products. Aramco and Sumitomo will inject USD 1.4 billion through a Class B share issuance to reinforce Petro Rabigh’s balance sheet and help prepay outstanding debt.
In a further effort to strengthen Petro Rabigh’s capital structure, Aramco and Sumitomo have waived a combined USD 1.5 billion in shareholder loans in two settlements completed in August 2024 and January 2025.
“Petro Rabigh is a key player in Saudi Arabia’s downstream sector, and this additional investment by Aramco reflects a strong belief in its long-term prospects. It also underscores Aramco’s focus on downstream expansion and value creation. We look forward to exploring closer integration with Petro Rabigh,” said Aramco senior vice-president of fuels Hussain A. Al Qahtani.
Petro Rabigh was established as a joint venture between Aramco and Sumitomo Chemical in 2005. It focuses on the production of petroleum products and ethylene and propylene derivatives.
Source: Theenergyyear.com