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DUBAI, April 21 (Reuters) – Saudi Aramco will acquire Royal Dutch Shell's 50 percent stake in its Saudi-owned refining joint venture, SASREF, for $ 631 million, the two companies said on Sunday.
The purchase, part of Aramco's strategy to expand its downstream business, will be completed later this year, they said in a joint statement.
The Saudi Aramco Shell Refinery Co (SASREF), based in Jubail Industrial City, Saudi Arabia, has a crude oil refining capacity of 305,000 barrels per day (bpd).
"Saudi Aramco will fully own it and integrate the refinery into its growing downstream portfolio. SASREF will remain an essential facility in our refining and chemicals sector, "said Abdulaziz al-Judaimi, vice president of Aramco, head of the downstream industry, in his statement.
Aramco's goal is to become a global leader in chemicals and the largest integrated energy company in the world, with plans to expand its refining and petrochemical operations.
For Shell, "the sale is part of an ongoing effort to focus its refining portfolio, integrating it into Shell's Trade Points and Chemicals," the company said.
Shell has sold more than $ 30 billion in badets in recent years and is now focusing on cleaner activities such as natural gas and petrochemicals.
Report by Rania El Gamal; Edited by Mark Potter and Susan
Fenton
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