Saudi Aramco announced on Sunday that it acquire Royal Dutch Shell’s 50 percent stake of the Sasref joint venture in Jubail Industrial City in Saudi Arabia, for $631 million.
The refinery has a capacity of 305,000 barrels per day.
The two companies said in a joint statement that the sale is expected to complete later this year.
Abdulaziz Al-Judaimi, Saudi Aramco‘s Senior Vice President of Downstream, said: “Saudi Aramco will take full ownership and integrate the refinery into its growing Downstream portfolio."
"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.
This deal comes as Saudi Aramco focuses on transforming into a leading global integrated energy and chemical producer.
For its part, Shell said, “the sale is part of an ongoing effort to focus its refining portfolio, integrating with Shell trading hubs and chemicals.”
John Abbott, Shell Downstream Director, said: “Sasref has been a long and successful partnership between Shell and Saudi Aramco."
"We’re proud of what we have achieved together over the past four decades and will continue to explore new business opportunities,” he added.
