BAKU, Azerbaijan, October 11. Aramco has strengthened its downstream portfolio with the acquisition of an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Japan’s Sumitomo Chemical Corporation for $702 million, at SAR 7 per share, Trend reports.
Following the transaction, Aramco now holds a 60% equity stake in Petro Rabigh, while Sumitomo retains 15%.
The move underscores Aramco’s commitment to expanding its downstream operations and integrating its refining and petrochemical assets to drive value creation and portfolio diversification. It also supports Petro Rabigh’s ongoing transformation program, which focuses on upgrading assets to increase high-margin output and enhance plant reliability.
“Petro Rabigh is a key player in the Kingdom’s downstream sector, and this additional investment reflects our strong belief in its long-term potential,” said Hussain A. Al Qahtani, Aramco’s Senior Vice President of Fuels. “We aim to deepen integration with Petro Rabigh and help advance its transformation goals, including optimizing operations and improving asset reliability.”
As part of the broader transaction first announced in August 2024, Aramco and Sumitomo will inject a combined $1.4 billion to partly prepay Petro Rabigh’s debt through the issuance of Class B shares, which both companies will fully subscribe to. This capital infusion will strengthen the company’s balance sheet without affecting its governance structure.
Additionally, Aramco and Sumitomo have waived $1.5 billion in shareholder loans in two phases, completed in August 2024 and January 2025, to improve Petro Rabigh’s capital structure and address accumulated losses.