Saudi Aramco has reached a deal to acquire Royal Dutch Shell PLC’s share of the partners’ 50-50 joint venture Saudi Aramco Shell Refinery Co. (Sasref), which operates the 305,000-b/d refinery at Jubail, Saudi Arabia.
As part of the deal, Aramco will purchase Shell’s 50% interest in the JV for $631 million in a transaction that, subject to regulatory approval, is scheduled to close later this year, Aramco and Shell said in a joint release, according to OGJ.
Aramco said the acquisition comes as part of a plan to increase the complexity and capacity of its refineries as part of the company’s broader long-term downstream growth strategy.
Shell’s decision to shed its interest in the downstream venture forms part of the company’s ongoing effort to focus its refining portfolio to further integrate with Shell Trading hubs and chemicals, the operator said.