Saudi Aramco to Weigh Buying Out Partner in RefineryBy and
Oil giant may also seek to find a partner for Luberef refinery
Jadwa’s stake in Luberef is potentially worth about $1 billion
Saudi Arabian Oil Co. is weighing a buyout of partner Jadwa Investment Co.’s stake in a refining company as the private equity firm considers exiting the joint investment, according to people familiar with the matter.
Aramco, as the energy giant is known, may also bring in another firm to buy Jadwa’s 30 percent stake in Saudi Aramco Base Oil Co. the people said, asking not to be identified as the information is private. Jadwa’s holding in the business, known as Luberef, could be valued at about $1 billion, the people said. No final decisions have been made and the parties may also decide to retain their stake, the people said.
A spokeswoman for Jadwa declined to comment. “Saudi Aramco does not comment on on-going business operations,” a representative for the firm said.
Riyadh-based Jadwa bought the stake in Luberef, which operates refineries in Jeddah and Yanbu, from Exxon Mobil Corp. in 2007. Jadwa is also considering a sale of Global Environmental Management Services in a deal that could fetch about $500 million for the buyout firm, people familiar with the matter said in March.
— With assistance by Wael Mahdi