Saudi Aramco will acquire Shell Saudi Arabia Refining Limited's 50 percent share in the SASREF refining joint venture in Saudi Arabia for $631 million, the two companies announced Sunday.
According to the joint statement, the refinery, located in Jubail Industrial City, has a output capacity of 305,000 barrels per day. The main products are liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil and sulphur.
'The acquisition supports Saudi Aramco's plan to increase the complexity and capacity of its refineries, as part of its long-term downstream growth strategy,' the press release read.
'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,' it added.
Abdulaziz Al-Judaimi, Saudi Aramco's senior vice president of Downstream, said Saudi Aramco would take full ownership of the refinery and integrate it into its growing downstream portfolio adding that it would continue to be a critical facility in the refining and chemicals business.
Shell Downstream Director John Abbott commended the long and successful partnership of both companies through the SASREF joint venture.
'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,' he added.
By Hale Turkes