Saudi Aramco Acquires Shareholding in Japans Showa Shelladmin
Monday, August 28th 2006
Saudi Aramco will acquire a 9.96% strategic shareholding in Showa Shell, a publicly traded Japanese refining and marketing company.
The transfer of shares is expected to be completed in August this year, subject to obtaining regulatory approvals.
Saudi Aramco has also agreed in principle to acquire an additional 4.99% of Showa Shell from the Royal Dutch/Shell GroupRoyal Dutch/Shell Group Royal Dutch Shell Group, subject to satisfaction of certain commercial conditions.
This is an outcome of an accord signed recently by The Saudi Arabian Oil Company (Saudi Aramco)Saudi Arabian Oil Company (Saudi Aramco).
Under the accord, Saudi Aramco will expand its worldwide refining and marketing presence and ensure a continued reliable source of high quality refined petroleum products in Japan, one of Saudi Aramco’s most important markets for crude oil.
Under the terms of the agreement, Saudi Aramco will supply a minimum of 300,000 barrels per day of Arabian crude oil to Japan, which, when considered with Saudi Aramco’s other supply commitments to Japan, makes the company the top supplier of crude oil to Japan.
As part of this transaction, Saudi Aramco will supply a minimum of 300,000 barrels per day of Arabian crude oil.
Showa Shell is one of the largest refiners in Japan, with access to 515,000 barrels per day of refining capacity through three affiliated refining companies. The company also markets refined products through a Shell branded retail network of about 5,000 service stations.
Saudi Aramco’s partnership with Showa Shell’s largest shareholder, Royal Dutch/Shell GroupRoyal Dutch/Shell Group, will enhance Showa Shell’s refining and marketing business in Japan through the secure supply of high quality Saudi crude oil, and by making available Saudi Aramco’s 70 years of experience in crude oil production and 60 years in the refining business.
Saudi Aramco currently supplies nearly 1 million barrels per day of crude oil to Japan.
Article originally published by Saudi Press Agency 26-Aug-06