Riyadh — Saudi Aramco said on Sunday it would acquire Royal Dutch Shell’s 50 percent stake in Saudi refining joint venture SASREF for $631 million.

The sale is expected to complete later this year, the two companies said in a joint statement.

Saudi Aramco Shell Refinery Co (SASREF), based in Jubail Industrial City in Saudi Arabia, has a crude oil refining capacity of 305,000 barrels per day (bpd). The main products are liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil and sulphur.

“The partnership with Shell has led to a strong record of performance and delivery of refined products,” 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.”

Saudi Aramco wrote in a statement that the acquisition is part of its plan to “increase the complexity and capacity of its refineries” as it moves towards downstream growth.

“SASREF has been a long and successful partnership between Shell and Saudi Aramco,” John Abbott, Shell Downstream director, said.

“The refinery has operated with good reliability, and has an impressive safety record. We’re proud of what we have achieved together over the past four decades and will continue to explore new business opportunities.”

For Shell, the sale is part of an ongoing effort to focus its refining portfolio, integrating with Shell Trading hubs and Chemicals. — SG