Saudi Aramco has completed the acquisition of an additional 22.5% stake in its joint venture, Petro Rabigh, from Japan’s Sumitomo Chemical Corporation for SAR 2.63 billion (approximately $701.8 million). This move raises Aramco’s ownership in Petro Rabigh to approximately 60%, solidifying its position as the largest shareholder, while Sumitomo retains a 15% stake.
The transaction is part of a broader turnaround strategy aimed at revitalizing the loss-making venture, which has accumulated net losses of SAR 12.4 billion between 2022 and mid-2025. As part of the recovery plan, Aramco and Sumitomo have agreed to inject a total of SAR 5.26 billion into Petro Rabigh and waive SAR 5.63 billion in shareholder loans.
Additionally, Aramco has assumed marketing rights for Petro Rabigh’s products, enhancing its downstream operations by increasing the conversion of crude oil into high-value products. This strategic move aligns with Aramco’s focus on downstream expansion and value creation.
The acquisition underscores Aramco’s commitment to strengthening its downstream value chain and supporting Petro Rabigh’s transformation, which includes upgrading its product mix, enhancing asset reliability, and optimizing operations.
This development reflects a broader trend in the energy sector, where major players are consolidating their positions in joint ventures to enhance operational efficiency and profitability amid challenging market conditions.
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