Saudi Aramco recently completed its acquisition of a further 22.5 per cent stake in Petro Rabigh from Japanese corporation Sumitomo Chemical for $702 million.
Founded in 2005, Petro Rabigh is a refining and petrochemical company based in Saudi Arabia and a joint project between Aramco and Sumitomo. The acquisition now raises Aramco’s ownership share to 60 per cent, making it the company’s largest shareholder.
Plans for the newly completed transaction were first announced back in 2024. The deal includes a massive funding injection of $1.4 billion capital, supplied jointly by the petrochemical company’s co-owners to help prepay its debt and provide it with working capital.
The recent acquisition represents a substantial step in Saudi Aramco’s continuing strategy to grow its integrated marketing, chemicals and refining activities. Owner of the Valvoline brand and supplying lubricants like hydraulic oil and cutting fluid, Saudi Aramco is the largest oil producer in the world. It is also the largest integrated chemical and energy company globally.
Aramco’s senior vice president for fuels, Hussain Al-Qahtani, commented:
“Petro Rabigh is a key player in the Kingdom’s downstream sector, and this additional investment by Aramco reflects strong belief in its long-term prospects. It also underscores Aramco’s focus on downstream expansion and value creation.”
The new deal follows a string of Aramco acquisitions. These include Esmax Distribucion SpA and a stake in Horse Powertrain Limited in late 2024, as well as a 50 per cent stake this year in the Blue Hydrogen Industrial Gases Company.
