Aramco plans to acquire additional 22.5 percent share in Japan’s Petro Rabigh
(MENAFN) energy giant Aramco is poised to increase its stake in Rabigh Refining and Petrochemical Co. (Petro Rabigh) by acquiring an additional 22.5 percent share from Tokyo-based Sumitomo Chemical for USD702 million. This transaction, which values the shares at SR7 (USD1.86) each, will elevate Aramco's ownership in the refining and petrochemical complex located on Saudi Arabia's west coast to approximately 60 percent, making it the majority shareholder. As a result, Sumitomo Chemical’s stake will be reduced to 15 percent.
Prior to this acquisition, both Aramco and Sumitomo Chemical held equal shares of 37.5 percent in Petro Rabigh, a company that has been listed on the Saudi Exchange since 2008. This acquisition aligns with Aramco’s broader strategy to expand its downstream operations and solidify its position in the refining sector. It also reflects Sumitomo Chemical’s strategic shift from commodity chemicals toward specialty chemicals.
Hussain Al-Qahtani, Aramco's senior vice president of fuels, emphasized that the acquisition is part of Aramco’s ongoing efforts to enhance its downstream value chain. By securing a greater stake, Aramco aims to better integrate its upstream crude oil production with affiliated refineries and convert more hydrocarbons into high-value materials. The company anticipates that the acquisition will also bolster Petro Rabigh’s financial stability and liquidity, thereby improving the company’s overall profitability.
Al-Qahtani expressed confidence that increasing their shareholding will foster closer integration with Petro Rabigh and support its turnaround strategy. He noted that this move is in line with Aramco's strategic goals and will strengthen their existing relationship with the company.
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