PetroRabigh IPO Approved for January
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Author: Saudi Aramco News
Released 14 November 2007
RABIGH, November 14, 2007 -- In its continuing effort to develop the Kingdom’s sustainable economic growth, Saudi Aramco is preparing to offer 219 million shares in an upcoming IPO for PetroRabigh, the joint-venture project with its Japanese partner, Sumitomo Chemical.
The landmark offering, which will be open to all Saudi nationals, opens for subscription Jan. 5 and closes Jan. 12. Saudi Aramco’s shares represent 25 percent of the company’s share capital in the venture.
President and CEO Abdallah S. Jum‘ah noted that the offering is a vital part of the company’s strategy to diversify the Kingdom’s resources and allow citizens to own their own shares in the project. It emphasizes Saudi Aramco’s role as a national company that wants to make a difference in the economic well-being of Saudi citizens.
“Since the Kingdom is considered the largest economic market in the Middle East,” said Jum‘ah, “this offering that we have studied and implemented for the first time in the company’s history will help in coping with current rapid market changes, stimulate Saudi financial markets, and develop the private sector and investors alike.
“Saudi Aramco, either through PetroRabigh or its other joint ventures, looks to provide more job opportunities for local citizens, to diversify sources of national income, and to provide new investment opportunities for private Saudi capital as well as attract international investments to the Kingdom.”
PetroRabigh, launched in September 2005 as a 50-50 joint venture between Saudi Aramco and Sumitomo Chemical, will be one of the world’s largest and most sophisticated integrated refining and petrochemical complexes. Located on the west coast of Saudi Arabia near Rabigh Port, it has excellent access to European and Asian markets. It is scheduled for completion in the third quarter of 2008 with commercial operations expected to begin in the fourth quarter of that year.
Benefiting from Saudi Aramco’s supply of crude oil, ethane and butane and its strong distribution and marketing networks, as well as Sumitomo Chemical’s technical and marketing expertise, PetroRabigh will create new economies of scale that will make it one of the global leaders in the industry. Saudi Aramco will assist in marketing the project’s refined products.
The facility is being constructed at the site of Saudi Aramco’s existing Rabigh Refinery, which produces 19 percent of the Kingdom’s current refining capacity. Commissioned in 1989, the refinery has a crude refining capacity of 400,000 barrels per day.