Aramco, one of the world’s leading integrated energy and chemicals companies, has advanced its strategic downstream expansion by acquiring an additional 22.5% stake in Rabigh Refining and Petrochemical Company (Petro Rabigh) from Sumitomo Chemical Corporation for $702 million (SAR 7 per share). With this transaction, Aramco becomes Petro Rabigh’s largest shareholder, holding approximately 60% equity, while Sumitomo retains a 15% stake.
The acquisition marks a significant step in Aramco’s strategy to enhance integration, value creation, and portfolio diversification across its downstream business. It also strengthens Aramco’s ability to support Petro Rabigh’s transformation program, which focuses on asset upgrades, higher-yield product output, and improved operational reliability.
Hussain A. Al Qahtani, Aramco’s Senior Vice President of Fuels, said:
“Petro Rabigh is a key player in the Kingdom’s downstream sector, and this additional investment reflects our strong belief in its long-term prospects. We look forward to exploring closer integration with Petro Rabigh to unlock new opportunities and advance its broader transformation objectives, including upgrading its product mix, enhancing reliability, and optimizing operations.”
As part of the transaction, first announced in August 2024, Aramco and Sumitomo will inject a total of $1.4 billion to partly prepay Petro Rabigh’s debt, supporting its future growth and strengthening its balance sheet. The injection will be facilitated through an innovative issuance of Class B shares, fully subscribed by Aramco and Sumitomo. This mechanism allows for capital infusion without altering Petro Rabigh’s governance structure or diluting existing shareholders’ voting power.
Additionally, Aramco and Sumitomo have waived a combined $1.5 billion in shareholder loans, completed in two phases in August 2024 and January 2025, further improving Petro Rabigh’s capital structure and addressing accumulated losses.
The move reinforces Aramco’s commitment to sustainable downstream growth and its strategic vision to create greater integration between refining and petrochemical operations—positioning Petro Rabigh for long-term competitiveness in the global energy landscape.
