Saudi Aramco will acquire Shell Saudi Arabia Refining Limited’s (Shell) 50 percent stake in the SASREF joint venture in Jubail Industrial City for $631 million, the state-owned oil major said in a statement.
The acquisition supports Aramco’s plan to increase the complexity and capacity of its refineries, as part of its long-term downstream growth strategy.
The sale is expected to complete later this year, subject to regulatory approval, the statement said.
The refinery, which has a capacity of 305,000 barrels per day, produces liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil and sulphur.
“The partnership with Shell has led to a strong record of performance and delivery of refined products. Saudi Aramco will take full ownership and integrate the refinery into its growing downstream portfolio,” said Abdulaziz Al-Judaimi, senior vice president of downstream, Saudi Aramco.
“SASREF will continue to be a critical facility in our refining and chemicals business and we look forward to further optimizing its performance and long term viability,” he added.
John Abbott, downstream director, Shell, stated: “SASREF has been a long and successful partnership between Shell and Saudi Aramco. The refinery has operated with good reliability, and has an impressive safety record. We will continue to explore new business opportunities.”
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