Saudi oil company Petro Rabigh, officially known as Rabigh Refining and Petrochemical Co., announced that its two largest shareholders, Saudi Aramco and Japan’s Sumitomo Chemical Co., have waived $1 billion in revolving shareholder loans (RSLs). Each company forgave $500 million in loans and any associated commissions as part of a strategy to support Petro Rabigh’s refinery upgrade plans.
This debt waiver is part of a broader effort to improve Petro Rabigh’s profitability and financial stability. The move supports Aramco’s expansion of downstream operations and aligns with Sumitomo Chemical’s shift from commodity chemicals to specialty chemicals.
In August, Aramco announced it would buy an additional 22.5% stake in Petro Rabigh from Sumitomo Chemical for $702 million, increasing its ownership to around 60%. This deal, along with the debt waiver, is expected to significantly strengthen Petro Rabigh’s financial position.