October 2, 2020
On Sept. 30, 2020, the Rabigh Refining and Petrochemical Company (Petro Rabigh) announced that it has successfully satisfied the conditions to commence commercial operations of the Rabigh Phase 2 Project leading to the termination of the shareholder provided completion guarantees.
Petro Rabigh owns one of the largest refineries in the Middle East. The company is publicly listed on the Saudi exchange, with its two largest shareholders being the Saudi Arabian Oil Co. (Saudi Aramco) and Japan’s Sumitomo Chemical Co. Ltd., each holding 37.5%. Located on Saudi Arabia’s Red Sea coast, the completed facility is one of the world’s largest combined refinery and petrochemical complexes.
In March 2015, Petro Rabigh signed project financing agreements with a syndicate of banks, including the Japan Bank for International Cooperation (JBIC) and the Public Investment Fund (PIF) of Saudi Arabia, for the US$ 9 billion Rabigh Phase 2 Project expansion project. The loans were guaranteed by Saudi Aramco and Sumitomo Chemical. By achieving completion, Petro Rabigh has demonstrated the Rabigh 2 Project’s continuous performance and the company’s ability to service the debt.
The transaction marks an important milestone for Petro Rabigh, who was able to successfully complete the transaction despite the challenging global environment. Petro Rabigh, was represented by Hunton Andrews Kurth. The team included Jason Parker and Stephanie Levy, with assistance from, James Simpson, Rimal Kacem and Svetlana Sorokina-Wilson.