Aramco announced today that it has strengthened its downstream portfolio by acquiring an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical Corporation (Sumitomo) for $702 million (SAR 7 per share). Following the transaction, Aramco now holds approximately 60% of Petro Rabigh’s shares, becoming its largest shareholder, while Sumitomo retains a 15% stake.
According to Aramco, the acquisition aligns with its downstream growth strategy aimed at driving value creation, business integration, and portfolio diversification. It also enhances Aramco’s ability to support Petro Rabigh’s ongoing transformation program, which focuses on targeted asset upgrades to boost high-margin product yields and improve plant reliability.
Hussain Al Qahtani, Aramco Senior Vice President of Fuels, said:
“Petro Rabigh is a key player in the Kingdom’s downstream sector, and this additional investment reflects Aramco’s strong confidence in its long-term prospects. It underscores our commitment to downstream expansion and value creation. We look forward to deeper integration with Petro Rabigh to unlock new opportunities and advance its transformation objectives, including product mix enhancement, asset reliability, and operational optimization.”
The transaction, first announced in August 2024, also includes a $1.4 billion capital injection jointly made by Aramco and Sumitomo to partially prepay Petro Rabigh’s debt, strengthening its balance sheet and supporting future growth. This will be achieved through the issuance of Class B shares by Petro Rabigh, fully subscribed to by both Aramco and Sumitomo. The innovative structure allows for capital infusion without altering Petro Rabigh’s governance framework or diluting existing shareholders’ voting rights.
Additionally, Aramco and Sumitomo have waived a total of $1.5 billion in shareholder loans to Petro Rabigh—completed in two phases in August 2024 and January 2025—further improving the company’s capital structure and helping address accumulated losses.
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