Saudi Aramco has completed the acquisition of Shell’s share in SASREF joint venture for $631m.Credit: J RAWLS.

Global integrated energy company Saudi Aramco has acquired Shell’s 50% stake in the Saudi Aramco Shell Refinery (SASREF) joint venture (JV) for $631m.

Saudi Aramco purchased the stake from Shell Saudi Arabia Refining.

The acquisition was completed after receiving the necessary approvals from the regulatory bodies.

The deal is part of Saudi Aramco’s strategy to bolster the capacity of its refineries, which also includes aligning with the company’s downstream growth strategy.

The divestment is a part of Shell’s ongoing effort to focus on its refining portfolio by integrating it with Shell Trading hubs and chemicals business.

Based in Jubail Industrial City, SASREF has a production capacity of 305,000bpd. It started production in 1985 and majorly produces liquefied petroleum gas, kerosene, diesel, fuel oil, naphtha and sulphur.

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The company employs more than 700 people.

Energy major Shell is mainly involved in oil and gas exploration and production businesses while Saudi Aramco produces approximately one in every eight barrels of the world’s oil supply.

In April, Saudi Aramco and Shell Saudi Arabia Refining announced that the former plans to acquire Shell’s 50% share of the SASREF JV.

In the same month, Saudi Aramco signed an agreement to acquire a 17% stake in South Korean oil refiner Hyundai Oilbank for $1.25bn. Hyundai Oilbank is a subsidiary of South Korean industrial group Hyundai Heavy Industries Holdings.