Saudi Aramco completes its acquisition of an additional stake in Petro Rabigh
Reinforced Petro Rabigh) from Sumitomo Chemical Company (Sumitomo) for US$702 million (7 Saudi riyals per share).
Under this step, Saudi Aramco becomes the largest shareholder in Petro Rabigh with an ownership stake of about 60%, while retaining "Sumitomo" With an ownership stake of 15%.
The deal reflects the commitment of Saudi Aramcotowards its partners and subsidiaries as part of its tireless endeavor to move forward with the refining, chemicals and marketing strategy that enhances value creation, business integration, and diversification of the investment portfolio.
The deal enhances Saudi Aramco’s ability to support the transformation program currently being implemented at Petro Rabigh, which includes targeted asset upgrades. To improve the productivity of products with high profit margins, and enhance the reliability of the facility.
On this occasion, the Senior Vice President of Fuel at Saudi Aramco, Mr. Hussein Al-Qahtani, said: "Petro Rabigh is a pivotal pillar of the Kingdom’s refining, chemicals and marketing sector, and this additional investment from Saudi Aramco reflects our strong confidence in its long-term future prospects."
He added: "It also confirms our focus on expansion in the refining and chemicals sector, marketing and value creation. We look forward to exploring closer integration with Petro Rabigh to unlock new opportunities and support Petro Rabigh’s broader transformation goals, which include improving product mix, enhancing asset reliability, and optimizing operations."
As part of the deal, which was first announced in August 2024, Saudi Aramco and Sumitomo agreed to inject a total of US$1.4 billion to prepay part of Petro Rabigh’s debts, in order to support its future growth opportunities and strengthen its financial position.
This injection process will involve Petro Rabigh issuing shares of Category "for " It will be fully subscribed by Saudi Aramco and Sumitomo. Through the issuance of class shares "for " Saudi Aramco and Sumitomo will each be able to inject new capital without changing Petro Rabigh’s current governance structure, or diluting the voting power of Petro Rabigh’s other shareholders.
As part of the deal, Saudi Aramco and Sumitomo waived a total of $1.5 billion in shareholder loans to Petro Rabigh, which was completed in two phases in August. 2024 and January 2025, which strengthened its capital structure and partially addressed its accumulated losses.
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