Aramco boosts stake in PetroRabigh with $702 million deal
According to an official statement, Aramco will purchase 22.5% of Rabigh Refining and Petrochemical Co. from the Japanese firm, thereby increasing its total ownership to 60%. Consequently, Sumitomo Chemical’s share will decrease to 15%.
In a strategic maneuver to solidify its standing in the petrochemical sector, Saudi Aramco has announced an agreement to acquire an additional stake in PetroRabigh from its joint venture partner, Sumitomo Chemical Co., for $702 million.
According to an official statement, Aramco will purchase 22.5% of Rabigh Refining and Petrochemical Co. from the Japanese firm, thereby increasing its total ownership to 60%. Consequently, Sumitomo Chemical’s share will decrease to 15%.
All proceeds from the sale are earmarked for reinvestment into the company. Additionally, Aramco has committed an extra $702 million to bolster PetroRabigh’s financial stability.
PetroRabigh operates a significant refining and petrochemical complex on Saudi Arabia’s west coast. The facility boasts a 1.6 million tons/year ethane cracker, 700,000 tons/year PP units, 600,000 tons/year LLDPE unit, 300,000 tons/year HDPE unit, and an 80,000 tons/year LDPE/EVA swing unit.
Currently, Saudi Aramco and Sumitomo have an agreement on the distribution ratio for the outputs from PetroRabigh. The statement did not specify whether this ratio agreement would be modified following the share acquisition.