Aramco to Buy Shell SASREF Stake for $631MM
Saudi Aramco has revealed that it will buy Shell Saudi Arabia Refining Limited’s 50 percent share of the SASREF joint venture in Jubail Industrial City for $631 million.
Aramco said the acquisition supports its plan to increase the complexity and capacity of its refineries. Shell said the sale is part of an ongoing effort to focus its refining portfolio. The sale is expected to complete later this year, subject to regulatory approval.
“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,” Abdulaziz Al-Judaimi, Saudi Aramco’s senior vice president of downstream, said in a company statement.
“SASREF will continue to be a critical facility in our refining and chemicals business and we look forward to further optimizing its performance and long-term viability,” he added.
John Abbott, Shell downstream director, said, “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,” he added.
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.
Earlier this month, Aramco revealed that it and Hyundai Heavy Industries Holdings had reached an agreement for Aramco’s subsidiary, Aramco Overseas Company B.V, to purchase a 17 percent stake in South Korea's Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings. The investment was valued at approximately $1.25 billion.
During April, Shell Offshore Inc signed an agreement to sell its 22.45 percent non-operated interest in the Caesar-Tonga asset in the US Gulf of Mexico to Delek CT Investment LLC, a subsidiary of Delek Group Ltd. The total consideration for the deal, which is likely to close by the end of the third quarter, is $965 million in cash.
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