Sector News

Aramco to buy Shell out of Sasref for $631 million

April 23, 2019
Chemical Value Chain

Saudi Aramco on Sunday confirmed reports that it is to acquire the 50% it does not already own in the Saudi Aramco Shell Refinery (Sasref) oil refinery joint venture (JV) with Shell for $631 million. The sale is expected to be completed later this year, subject to regulatory approvals.

“Saudi Aramco will take full ownership and integrate the refinery into its growing downstream portfolio,” said Abdulaziz al-Judaimi, Aramco’s senior vice president/downstream. Sasref will continue to be a critical facility in Aramco’s refining and chemicals business and the company plans to optimize its performance, he said. The Jubail, Saudi Arabia–based refinery has a capacity of 305,000 b/d. Its main products are liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil, and sulfur.

For Shell, the sale is the second major exit from Saudi Arabia. Two years ago, Sabic, which itself is being acquired by Aramco, bought Shell out of Saudi Petrochemical Co. (Sadaf) for $820 million, terminating a long-term agreement with Shell that was due to expire in 2020. Sabic plans to fold Sadaf into its Arabian Petrochemical Co. (Petrokemya) subsidiary in the second half of this year with Petrokemya as the surviving entity.

For Aramco, the Sasref deal is another push downstream. The company bought Lanxess out of their Arlanxeo (Maastricht, Netherlands) synthetic rubber JV last year and it also bought Shell out of Motiva Enterprises in Texas. Aramco is, at the same time, acquiring more downstream assets around the world to beef up its portfolio.

By Natasha Alperowicz

Source: Chemical Week

comments closed

Related News

May 21, 2022

Sika opens new manufacturing plant in Bolivia 

Chemical Value Chain

Sika AG (Baar, Switzerland) has opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. With this new facility in one of the country’s main industrial agglomerations, Sika is positioning itself for continued growth in the dynamic Bolivian construction market.

May 21, 2022

Chevron increases renewable fuel market share with REG acquisition

Chemical Value Chain

Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) (REG) announced on Monday a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.

May 21, 2022

Lotte Chemical to invest $8 bn on hydrogen energy, battery materials by 2030

Chemical Value Chain

Lotte Chemical Corp. will invest 10 trillion won ($8 billion) on hydrogen and battery materials through 2030 to achieve annual revenue of 50 trillion won and carbon neutrality. The Korean chemical producer on Thursday unveiled its new corporate vision outlining key corporate strategies with focus on growth through hydrogen energy and battery materials businesses.