Aramco has strengthened its downstream portfolio with the acquisition of an additional 22.5 per cent stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical Corporation for USD 702 million (SR7 per share).
Following the transaction, Aramco now holds approximately 60 per cent of Petro Rabigh’s shares, making it the company’s largest stakeholder, while Sumitomo retains a 15 per cent interest.
The company said the acquisition underscores its commitment to partners and affiliates and aligns with its downstream strategy aimed at value creation, operational integration, and portfolio diversification.
Aramco added that the investment will further support Petro Rabigh’s ongoing transformation programme, which focuses on asset modernisation to increase the production of high-margin products and improve plant efficiency.
Hussain Al Qahtani, Senior Vice President of Fuels at Aramco, stated: “Petro Rabigh is a key player in the Kingdom’s downstream sector, and this additional investment by Aramco reflects a strong belief in its long-term potential.
“It also reinforces Aramco’s commitment to downstream growth and value creation. We look forward to exploring closer integration with Petro Rabigh to unlock new opportunities and advance its transformation agenda, including product optimisation, improved reliability, and operational excellence.”
As part of the transaction initially announced in August 2024, Aramco and Sumitomo will jointly inject USD 1.4 billion to partially prepay Petro Rabigh’s debt, supporting its long-term growth prospects and strengthening its financial position.
The capital infusion will be facilitated through the issuance of Class B shares by Petro Rabigh, which will be fully subscribed by both Aramco and Sumitomo.
This mechanism allows both partners to provide new capital without changing the company’s governance framework or diluting the voting rights of existing shareholders.
Additionally, Aramco and Sumitomo have waived a combined USD 1.5 billion in shareholder loans to Petro Rabigh, completed in two phases between August 2024 and January 2025, improving its capital structure and helping offset accumulated losses.
