The Aramco acquisition of a 22.5 percent stake in Petro Rabigh marks a major move in its downstream growth. With this deal, Aramco increased its ownership to 60 percent, strengthening control over one of Saudi Arabia’s key refining and petrochemical assets.
The transaction, worth $702 million, followed approval from Japan’s Sumitomo Chemical. The purchase price was SR7 per share, reflecting confidence in Petro Rabigh’s growth potential. Sumitomo now holds 15 percent, while other shareholders retain the rest.
Both Aramco and Sumitomo also invested $1.4 billion in new capital to stabilize Petro Rabigh’s finances. This capital will reduce debt, enhance liquidity, and strengthen the company’s balance sheet for future operations.
Hussain Al-Qahtani, Aramco’s senior vice president of fuels, said the investment shows belief in Petro Rabigh’s strategic role. He noted that stronger integration will open new opportunities, improve reliability, and increase efficiency across facilities.
Aramco supports its wider plan to expand refining, chemicals, and marketing operations worldwide. The company aims to create more synergy between refining and petrochemical activities while maximizing long-term value creation.
Petro Rabigh plans to use the new capital for plant upgrades and higher production of high-margin products. Aramco and Sumitomo also waived $1.5 billion in loans to improve the company’s financial structure and reduce losses.
Investor response was positive after the announcement. Aramco’s share price rose 0.38 percent to SR92.95, while Petro Rabigh’s stock gained 1.82 percent to SR7.84 during trading.
This deal follows several strategic moves by Aramco to expand its global presence. In 2025, it bought a 50 percent stake in Blue Hydrogen Industrial Gases Co. to boost hydrogen production. It also acquired Chile’s Esmax Distribucion SpA, its first downstream retail investment in South America.
Analysts expect the Aramco to strengthen Saudi Arabia’s refining capacity and boost competitiveness. The partnership will likely drive efficiency, innovation, and growth in the Kingdom’s downstream energy sector.
