Saudi Arabian Oil Co. (Aramco) has accomplished the acquisition of Esmax Distribucion SPA from Southern Cross Group, marking the Saudi power big’s entry into the South American gasoline retail market, Aramco stated.
“The transaction, which was first introduced in September 2023, represents Aramco’s first Downstream retail funding in South America, illustrates the attractiveness of this market, and helps the Firm’s strategic aim to strengthen its Downstream worth chain”, the state-owned oil big stated in a information launch.
Esmax is the third greatest gasoline retailer in Chile managing 279 service stations, in addition to 130 comfort shops, in line with Southern Cross. Esmax says it’s a licensee of Brazilian state-owned Petroleo Brasileiro SA. It additionally holds non-controlling stakes in an oil pipeline and an aviation gasoline storage facility on the Santiago Airport, in line with data on Southern Cross’ web site.
Aramco didn’t disclose the monetary particulars of the one hundred pc stake buy.
“Aramco goals to be a main international retail participant and this deal combines our top quality services and products, together with Valvoline lubricants, with the expertise and high quality of a longtime operator in Chile”, Yasser Mufti, Aramco govt vice-president for merchandise and clients, stated in a press release.
Aramco acquired Lexington, Kentucky-based Valvoline Inc. final 12 months for $2.65 billion.
The Esmax acquisition supplies Aramco with extra retailers for its refined merchandise, Aramco stated in its acquisition settlement announcement final 12 months.
Aramco already has a presence in Latin America by its majority-owned Saudi Primary Industries Corp., which holds pursuits in petrochemical vegetation in Argentina, Brazil and Mexico. Aramco acquired the entire Saudi authorities’s 70 p.c curiosity in SABIC from the Public Funding Fund in 2020 for SAR 259.1 billion ($69.1 billion), as introduced by Aramco June 17, 2020.
Elsewhere in its gasoline and chemical market growth Aramco final 12 months accomplished the acquisition of a ten p.c curiosity in China’s Rongsheng Petrochemical Co. Ltd. for $3.1 billion (CNY24.6 billion).
The deal sees Aramco supplying 480,000 barrels per day (bpd) of petroleum from Saudi to what it stated is China’s greatest built-in refining and chemical substances plant. Rongsheng holds a 51 p.c curiosity within the proprietor of the plant, Zhejiang Petroleum and Chemical Co. Ltd. The plant can course of as much as 800,000 bpd of crude and produce as much as 4.2 million metric tons of ethylene a 12 months, in line with Aramco.
“Our strategic partnership with Rongsheng advances Aramco’s liquids to chemical substances technique whereas rising our presence in China and showcases our significance as a dependable provider of crude oil”, Al Qahtani stated in a press launch July 21, 2023, asserting the completion of the acquisition.
Later it signed agreements securing talks on its bids to accumulate stakes in two extra Chinese language downstream gamers. Aramco plans to have a ten p.c stake in Shandong Yulong Petrochemical Co. Ltd. and one other 10 p.c stake in Jiangsu Shenghong Petrochemical Trade Group Co. Ltd.
A memorandum of understanding it introduced October 11 proposes that Aramco provide Shandong Yulong with petroleum and different feedstocks.
The settlement for Jiangsu Shenghong Petrochemical additionally seeks to have the Saudis provide crude oil and different feedstocks to the Chinese language operator.
“Aramco and Shenghong Petrochemical additionally intend to cooperate on the event of a giant growth undertaking, topic to additional discussions between the events and the execution of definitive agreements”, Aramco stated in a media launch September 27.
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