Shell is selling its 50% stake in an oil refining joint venture to Saudi Aramco in a deal worth $631 million (£485m).
The purchase of the energy giant’s interest in Saudi Aramco Shell Refinery Company (SASREF) in Saudi Arabia, which ends the joint venture, is part of Aramco’s strategy to expand its downstream operations.
The refinery’s main products are liquefied petroleum gas, kerosene, diesel, fuel oil and sulphur and has a capacity of 305,000 barrels per day.
The sale is expected to be completed later this year, subject to regulatory approval.
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 optimising its performance and long term viability.”
For Shell, the sale is part of an ongoing effort “to focus its refining portfolio, integrating with Shell Trading hubs and Chemicals”.