The Saudi Arabian Oil Co, better known as Saudi Aramco, on Sunday announced the acquisition of Shell Saudi Arabia Refining Limited’s (Shell) 50% stake in the Saudi SASREF joint venture for SAR 2.366 billion ($631 million).
“Saudi Aramco will take full ownership and integrate the refinery into its growing downstream portfolio,” Saudi Aramco’s senior vice president of downstream, Abdulaziz Al-Judaimi, said in a statement.
“For Shell, the sale is part of an ongoing effort to focus its refining portfolio, integrating with Shell Trading hubs and Chemicals,” the statement added.
The acquisition will help Saudi Aramco enhance the complexity and capacity of its refineries as it aims to achieve long-term downstream growth.
The acquisition deal is forecast to complete later in 2019 after obtaining regulatory approval.
Based in Saudi Jubail Industrial City, the refinery has a capacity of 305,000 barrels per day (bpd) and the main products include liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil, and sulphur.