Wedoany.com Report-Oct. 13, Aramco has expanded its downstream presence by acquiring an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical Corporation of Japan for $702 million, at a share price of SAR 7. Following this transaction, finalized in early 2025, Aramco’s ownership in Petro Rabigh rises to 60%, while Sumitomo retains a 15% stake.

This acquisition aligns with Aramco’s strategy to strengthen its refining and petrochemical operations, enhancing integration and diversifying its portfolio. It supports Petro Rabigh’s transformation efforts, which aim to upgrade facilities, boost high-value production, and improve operational reliability.

Hussain A. Al Qahtani, Aramco’s Senior Vice President of Fuels, stated: “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. We aim to deepen integration with Petro Rabigh and help advance its transformation goals, including optimizing operations and improving asset reliability.”

As part of a broader agreement announced in August 2024, Aramco and Sumitomo will invest $1.4 billion to reduce Petro Rabigh’s debt through the issuance of Class B shares, fully subscribed by both companies. This capital injection strengthens the company’s financial position without altering its governance framework.

Additionally, Aramco and Sumitomo have forgiven $1.5 billion in shareholder loans in two stages, completed in August 2024 and January 2025. This move improves Petro Rabigh’s financial structure and addresses accumulated losses, supporting its long-term stability and growth.