Aramco completes deal to up stake in struggling JV Petro Rabigh
Saudi Aramco has finalized the acquisition of an additional 22.5 percent stake in its joint venture Petro Rabigh, previously co-owned with Japan’s Sumitomo Chemical, for 2.63 billion riyals ($701.8 million). The move raises Aramco’s total ownership to roughly 60 percent, giving it greater operational control.
Petro Rabigh has faced financial difficulties since 2021, accumulating 12.4 billion riyals in losses between 2022 and mid-2025. To stabilize the company, Aramco and Sumitomo plan a capital injection of 5.26 billion riyals and a $1.5 billion debt write-off.
The restructuring gives Aramco marketing rights for Petro Rabigh’s output, tightening vertical integration into its downstream business. The deal forms part of Aramco’s efficiency drive following a 22 percent profit decline in Q2 2025 due to lower oil prices.
By consolidating control, Aramco seeks to restore Petro Rabigh’s profitability and embed it more deeply into the group’s refining and petrochemical network, ensuring long-term value creation within its industrial ecosystem.
References & Source:
Reuters — “Aramco completes deal to up stake in struggling JV Petro Rabigh.”