Aramco Acquires Sumitomo’s Stake for $702 Million, Boosting Control of Petro Rabigh to 60% — What Global Ambitions Does This Move Reveal?

Saudi Aramco recently announced that it has acquired an additional 22.5% stake in Petro Rabigh (Rabigh Refining and Petrochemical Company) from Japan’s Sumitomo Chemical for $702 million (approximately 7 Saudi riyals per share). Upon completion of the transaction, Aramco’s ownership in Petro Rabigh will rise to around 60%, making it the controlling shareholder, while Sumitomo Chemical will retain the remaining 15% stake.

This acquisition further strengthens Aramco’s long-term partnership with its strategic allies and underscores its continued commitment to value creation, business integration, and portfolio diversification. Following the transaction, Aramco will be better positioned to support Petro Rabigh’s ongoing transformation program, which aims to increase production of higher-margin products, optimize the product slate, and enhance overall plant reliability through strategic asset upgrades.

The deal was first announced in August 2024, when Aramco and Sumitomo jointly agreed to inject $1.4 billion into Petro Rabigh to partially prepay its debt and reinforce its balance sheet. The capital will be raised through the issuance of innovative Class B shares, to be fully subscribed by Aramco and Sumitomo. The structure of the Class B shares ensures fresh capital infusion without altering the existing governance framework or diluting other shareholders’ voting rights.

In addition to the equity investment, both parties have forgiven a total of $1.5 billion in shareholder loans to Petro Rabigh. The loan forgiveness, carried out in two phases in August 2024 and January 2025, further improves Petro Rabigh’s capital structure and alleviates accumulated losses. Together, these measures reflect Aramco and Sumitomo’s coordinated efforts to enhance Petro Rabigh’s financial stability and enable its long-term sustainable growth.

Hussain A. Al-Qahtani, Aramco’s Senior Vice President of Fuels, stated:“Petro Rabigh is a key pillar of Saudi Arabia’s downstream industry. This increased investment demonstrates Aramco’s strong confidence in its long-term prospects. We look forward to deeper integration with Petro Rabigh to unlock new growth opportunities and support its strategic objectives of upgrading product portfolios, improving asset reliability, and optimizing operations.”