PRESSR: Aramco completes acquisition of additional stake in Petro Rabigh
PETRO RABIGH 2380.SA | 10.53 | 0.00% |
SAUDI ARAMCO 2222.SA | 27.40 | +0.44% |
Planned upgrades of Petro Rabigh assets expected to improve yields and enhance reliability
DHAHRAN, Saudi Arabia – Aramco, one of the world’s leading integrated energy and chemicals companies, has advanced its strategic downstream expansion with the acquisition of an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical Corporation (Sumitomo) for $702 million (SAR 7 per share). Aramco is now Petro Rabigh’s largest shareholder with an equity stake of approximately 60%, while Sumitomo retains an equity stake of 15%.
The transaction reflects Aramco’s commitment to its partners and affiliates, as it forges ahead with a downstream strategy that promotes value creation, business integration and portfolio diversification. The transaction also enhances Aramco’s ability to support the transformation program underway at Petro Rabigh, which includes targeted asset upgrades to improve the yield of high-margin products and enhance plant reliability.
Hussain A. Al Qahtani, Aramco Senior Vice President of Fuels, said: “Petro Rabigh is a key player in the Kingdom’s downstream sector and this additional investment by Aramco reflects 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, with the aim of unlocking new opportunities and complementing Petro Rabigh’s broader transformation objectives, which include upgrading its product mix, enhancing asset reliability and optimizing operations.”
As part of the transaction, first announced in August 2024, Aramco and Sumitomo agreed to inject a total of $1.4 billion to partly prepay Petro Rabigh’s debt, supporting its future growth opportunities and strengthening its balance sheet. This injection will involve the innovative issuance by Petro Rabigh of Class B shares, which will be fully subscribed to by Aramco and Sumitomo. Through the Class B share issuance, Aramco and Sumitomo will be able to inject fresh capital without altering Petro Rabigh’s existing governance structure or diluting the voting power of Petro Rabigh’s other shareholders.
As part of the transaction, Aramco and Sumitomo have also waived a total of $1.5 billion in shareholder loans to Petro Rabigh (completed in two phases in August 2024 and January 2025), improving its capital structure and partially remediating its accumulated losses.
Aramco Contact Information
Media Relations: media.inquiries@aramco.com
@aramco
About Aramco
As one of the world’s leading integrated energy and chemicals companies, our global team is dedicated to creating impact in all that we do, from providing crucial oil supplies to developing new energy technologies. We focus on making our resources more dependable, more sustainable and more useful, helping to promote growth and productivity around the world. https://www.aramco.com
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.