Shell Divests Stake in Saudi Refinery
Saudi Aramco has acquired Shell Saudi Arabia (Refining) Limited’s 50-percent interest in the SASREF refining joint venture for $631 million, Shell and Saudi Aramco reported Wednesday.
The companies noted the acquisition follows receipt of all necessary regulatory consents.
Located in Jubail Industrial City, Saudi Arabia, SASREF can process up to 305,000 barrels per day of crude oil and is one of the world’s largest export refineries, according to Shell’s website. The facility, which began commercial production in 1985, primarily produces liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil and Sulphur.
For Saudi Aramco, taking full ownership of SASREF will enable it to integrate the facility into its expanding downstream portfolio, a company executive stated when the transaction was announced in April of this year. The company also noted Wednesday that its long-term downstream growth strategy calls or increasing the complexity and capacity of its refineries.
Meanwhile, Shell has stated the divestiture aligns with its ongoing efforts to integrate its refining portfolio with the company’s trading hubs and chemicals operations.
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