Saudi Aramco denies plans to buy LyondellBasell Refinery in Houston

Estimated to be worth around $2 billion, refinery is designed to process low-quality, high sulfur crude oil

Published: Updated:
Enable Read mode
100% Font Size

Saudi Aramco has denied news circulating on its offering to purchase LyondellBasell refinery in Houston in the US, according to Saudi Press Agency.

Aramco said that the news recently circulated by a number of media organs about the company’s offer to purchase the Houston-based refinery, one of the largest in the US, is incorrect, saying it has not made an offer to purchase the mentioned refinery.

According to a Reuters report, sources familiar with the matter had said on Friday that at least three firms including Aramco had bid over $1 billion for the refinery, with the Saudi firm seen as the front-runner among the bidders.

"The company did not bid for the referred venture," the Aramco statement said.

According to Reuters , the other bidders included Valero Energy Corp and Suncor Inc, quoting sources said, adding that the bids were over $1 billion up to $1.5 billion.

The Lyondell refinery, a Dutch company, estimated to be worth around $2 billion, is designed to process low-quality, high sulfur crude oil.

Strengthening market share

Experts are of the opinion that a Saudi Aramco bid, would have helped boost the Kingdom’s position on the Gulf of Mexico coast and in the US energy market.

Last month, a senior Aramco official had said that the company plans to invest a total of about $334 billion by 2025, including spending on infrastructure and projects to maintain oil capacity.

Abdulaziz Al-Abdulkarim, vice president for procurement and supply chain management, told a conference in Bahrain that the figure included spending on exploring for and developing unconventional resources, such as shale gas.

“Saudi Aramco is forecast to spend around $334 billion. This will be spent on material and services to support service facilities, infrastructure projects, drilling and maintain (oil) potential projects, unconventional resources both in the exploration phase and development and several other projects,” he told the conference.

Top Content Trending