Saudi Aramco To Acquire 22.5 Pct Stake In Petro Rabigh From Japan's Sumitomo

MOSCOW, Aug 7 (Bernama-Sputnik) -- Saudi state-owned oil and gas giant Aramco announced on Wednesday that it will acquire an additional 22.5 per cent stake in the Petro Rabigh refining venture from Sumitomo Chemical, one of Japan's largest chemical companies, reported Sputnik.

"Aramco, one of the world’s leading integrated energy and chemicals companies, has signed a definitive agreement to acquire an additional stake of approximately 22.5 per cent in Rabigh Refining and Petrochemical Co. ("Petro Rabigh"), the refining and petrochemical complex located on the Kingdom of Saudi Arabia’s west coast, from Sumitomo Chemical for US$702 million," the company said in a statement.

Currently, Aramco and Sumitomo Chemical each hold a 37.5 per cent stake in Petro Rabigh. Upon completion of the sale, which is valued at 7 Saudi rials (US$1.86) per share, Aramco will become Petro Rabigh's largest shareholder with a stake of approximately 60 per cent, while the Japanese company will retain a 15 per cent stake, the statement said.

"Under the terms of the share sale and purchase agreement, all proceeds received by Sumitomo Chemical from the sale will be injected into Petro Rabigh, through a mechanism to be agreed with Petro Rabigh. Aramco will also provide additional funds to Petro Rabigh ... bringing the aggregate injection amount to US$1.4 billion," the company said.

These measures are expected to improve Petro Rabigh's balance sheet and liquidity, the statement said, adding that the companies are developing a refinery modernisation initiative to improve the business's profitability.

Aramco is the national oil company of Saudi Arabia, founded in 1933 and headquartered in Dhahran. The company controls nearly all of the country's oil production facilities and operates in the three major global energy markets of Asia, Europe, and North America.

--BERNAMA-SPUTNIK