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Aramco takes control of Petro Rabigh with $702 million acquisition

Aramco becomes Petro Rabigh's majority shareholder after purchasing a 22.5% stake from Sumitomo, consolidating its downstream strategy and supporting the industrial transformation of the Saudi petrochemical complex.

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Aramco has completed the acquisition of an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh), previously held by Sumitomo Chemical Corporation, for $702 million (SAR2.63bn). This transaction raises Aramco’s shareholding to approximately 60%, making the Saudi company the main shareholder of one of the country’s largest integrated petrochemical complexes.

The deal is part of Aramco’s downstream expansion strategy aimed at strengthening industrial integration, diversifying its portfolio, and optimising the hydrocarbon value chain. The share purchase comes amid an operational transformation at Petro Rabigh, with planned investments to enhance plant reliability and increase the output of high-margin products.

Joint capital injection and debt restructuring

In parallel with the acquisition, Aramco and Sumitomo agreed to jointly inject $1.4 billion to ease Petro Rabigh’s debt burden. This capital injection, structured through the issuance of Class B shares, will allow the introduction of new funds without altering the existing governance structure or voting rights of other shareholders. Aramco and Sumitomo will fully subscribe to this issuance.

The financial support is accompanied by a total of $1.5 billion in waived shareholder loans, carried out in two phases in August 2024 and January 2025. This measure aims to improve Petro Rabigh’s capital structure and reduce the impact of its accumulated losses, facilitating its financial recovery path.

Industrial capacity and regional ambitions

The Petro Rabigh site, located on Saudi Arabia’s western coast, is a strategic axis in the national petrochemical development. It combines a refinery with chemical and plastics production units for export and domestic industry. Aramco’s increased shareholding strengthens industrial coordination within the Kingdom while securing the supply of high-value-added feedstocks.

The completion of this transaction marks a key step for Aramco in strengthening its positions in downstream activities, particularly in refining, petrochemicals, and performance materials. This strategy follows a logic of optimising industrial flows and responding to changes in regional demand.

Outlook for petrochemical sector consolidation

With this takeover, Aramco is positioned to benefit from future industrial synergies with Petro Rabigh while supporting its transformation efforts. The planned operational improvements aim to increase yields from existing units and optimise operating costs. The deal may also influence other restructurings in the regional petrochemical sector, amid asset rationalisation and strategic redeployment of investments.

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