Aramco has finalized the acquisition of an additional 22.5% stake in Petro Rabigh from Sumitomo Chemical for $702 million, making it the majority shareholder with approximately 60% ownership.
Aramco, the world’s leading integrated oil, gas and chemicals enterprise, successfully concluded the acquisition of the equity stake in the Rabigh Refining and Petrochemical Company (Petro Rabigh) from its long-time partner, Sumitomo Chemical Corporation (Sumitomo). The transaction, valued at $702 million (SAR 7 per share), immediately elevates Aramco’s total ownership to approximately 60%, positioning the Saudi energy giant as the majority and largest shareholder. Sumitomo will retain a 15% stake, shifting the dynamic of the 2005-established joint venture which has recently struggled with challenging market conditions.
The acquisition marks a decisive step in Aramco’s strategic downstream expansion, aligning the refining and petrochemical complex more closely with its core objectives of value creation, business integration, and portfolio diversification. By gaining majority control, Aramco is better equipped to implement a critical transformation program designed to stabilize Petro Rabigh's financial health and enhance its operational efficiency.
Hussain A. Al Qahtani, Aramco Senior Vice President of Fuels, underscored the significance: “Petro Rabigh is a key player in the Kingdom’s downstream sector and this additional investment by Aramco reflects strong belief in its long-term prospects."
The deal is underpinned by a comprehensive financial restructuring aimed at significantly strengthening the company’s precarious balance sheet and remediating accumulated losses. This restructuring package totals nearly $3 billion in financial commitment and liability reduction.
Aramco and Sumitomo have agreed to inject a combined total of $1.4 billion in fresh capital to partly prepay Petro Rabigh’s outstanding debt. This is executed through the issuance of innovative Class B shares, fully subscribed to by the two founding partners.
Aramco and Sumitomo have waived a total of $1.5 billion in shareholder loans provided to Petro Rabigh. This crucial waiver, completed in two phases (August 2024 and January 2025), provides an immediate and material boost to the company’s capital structure by directly reducing liabilities and offsetting accumulated financial losses.
The successful closure of this acquisition and the accompanying financial overhaul provides the necessary foundation for the multi-year turnaround strategy. The transformation program is specifically targeting asset upgrades to improve plant reliability and shift the product mix toward high-margin petrochemical derivatives.
