The Saudi Arabian Oil Company (Saudi Aramco) is to acquire Shell Saudi Arabia Refining Limited’s 50% share of the Saudi Aramco Shell Refinery Co. (SASREF) joint venture in Jubail Industrial City, in Saudi Arabia, for USD631 million. 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.
The sale is expected to complete later this year, subject to regulatory approval.
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.
For Shell, the sale is part of an ongoing effort to focus its refining portfolio, integrating with Shell Trading hubs and Chemicals. The company has offloaded more than USD30 billion worth of assets as it shifts its focus towards lower carbon markets such as natural gas and petrochemicals.
“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. 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,” said Abdulaziz Al-Judaimi, Saudi Aramco‘s senior vice president of Downstream.
“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’re proud of what we have achieved together over the past four decades and will continue to explore new business opportunities,” said John Abbott, Shell Downstream director.