Saudi Aramco to acquire Shell’s $631mn share of SASREF refining joint venture
This is part of its long-term downstream growrth strategy, which recently saw it agree to purchase 70% of Saudi chemicals giant SABIC
Saudi Aramco will acquire Shell Saudi Arabia Refining Limited’s (Shell) 50% share of the SASREF joint venture in Jubail Industrial City, in the Kingdom of Saudi Arabia, for $631mn.
“The partnership with Shell has led to a strong record of performance and delivery of refined products," Abdulaziz Al-Judaimi, Saudi Aramco‘s senior vice president of Downstream, said. "Saudi Aramco will take full ownership and integrate the refinery into its growing Downstream portfolio. SASREF will continue to be a critical facility in our refining and chemicals business and we look forward to further optimising its performance and long term viability.”
Saudi Aramco wrote in a statement that the acquisition is part of its plan to "increase the complexity and capacity of its refineries" as it moves towards downstream growth.
“SASREF has been a long and successful partnership between Shell and Saudi Aramco," John Abbott, Shell Downstream director, said. "The refinery has operated with good reliability, and has an impressive safety record. We’re proud of what we have achieved together over the past four decades and will continue to explore new business opportunities.”
For Shell, the sale is part of an ongoing effort to focus its refining portfolio, integrating with Shell Trading hubs and Chemicals.
The sale is expected to complete later this year, subject to regulatory approval.
The refinery has a capacity of 305,000 barrels per day. The main products are liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil and sulphur.