Exxon pulls out of Aramco joint venture
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 07 November 2007
US oil giant Exxon Mobil has sold its 30% stake in an oil lubricants joint venture with Saudi Aramco to Riyadh-based Jadwa Investment, Aramco announced on Tuesday.
Aramco said the end of the 31-year partnership with Exxon on Saudi Aramco Lubricating oil Refining Company (Luberef) will not impact the companies’ other joint ventures in the kingdom or abroad, but gave no reason for the sale.
Exxon also has interests in Saudi Aramco Mobil Refinery Company (Samref) and the Fujian Refining and Ethylene Joint Venture Project in China.
No jobs cuts are expected following the deal, with Jadwa stating it plans to expand Luberef’s operations, creating additional jobs for Saudis.
“Jadwa's new partnership with Saudi Aramco and our common interest in growing Luberef will meet national policy goals of job creation for Saudis and expansion of private sector involvement," Jadwa Chairman Prince Faisal bin Salman bin Abulaziz said in a statement.
Luberef operates refineries in Jiddah and Yanbu that produce lubricating base oils. The combined design capacity of Luberef’s two refineries is 550,000 tonnes per year.
Jadwa said it plans to enter into more partnerships similar to that with Aramco on Luberef in the near future.
“We certainly plan to enter into other investments on a case by case basis as we determine what to be appropriate for us and our clients' investment strategies,” said Brad Bourland, head of research at Jadwa.
The financial details of the deal, which is subject to regulatory approval, were not disclosed.
READERS' COMMENTS
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST CONSTRUCTION & INDUSTRY
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST CONSTRUCTION & INDUSTRY
LATEST MIDDLE EAST BUSINESS NEWS
- Banking & Finance: Investors cautious as dividends push ME markets up
- Energy: Abu Dhabi to sign $2bn in onshore oil contracts
- Banking & Finance: Oman's Vision eyes infrastructure growth fund
- Banking & Finance: Rising loan provisions 'natural' - UAE central bank
- Banking & Finance: Bahrain's GFH chair faces $125m property lawsuit
SHARE PRICE CHECK
RELATED STORIES
Exxon Mobil
- Iraq oilfield deals herald boom for service firms
3 Dec '09 | Features - Power play
6 Nov '09 | Features - Exxon Qatar gas output to hit 4bn cfd
27 Oct '09 | News
Jadwa Investment Co.
- Jadwa Investments acquires equity stake in GUFC
3 Jan '10 | News - Saudi economy seen recovering in Q4 - Jadwa
9 Sep '09 | News - Crisis forces Saudi gov't to foot bill for projects
20 May '09 | News
Saudi Aramco
- Saudi clean diesel unit eyes full start in March
6 Feb '10 | News - Saudi and Japan's JGC sign refinery emissions deal
1 Feb '10 | News - Saudi Aramco eyes $120bn energy investments
31 Jan '10 | News





