Saudi Arabian Oil Co. subsidiary Motiva Enterprises LLC signed an agreement with an affiliate of Flint Hills Resources LLC for the 100% stake acquisition in Flint Hills Resources Port Arthur LLC, according to an Aug. 19 news release from the Aramco unit. The company to be acquired operates a chemical plant.
The deal is expected to close in the fourth quarter, subject to closing conditions. Financial details were not provided.
Flint Hills acquired the chemical plant from Huntsman Corp. for $770 million in 2007, the Houston Chronicle reported Aug. 19.
The plant includes an ethane cracker that has the capacity to produce 620,000 metric tons per year of ethylene. It has another unit that can produce 340,000 tons per year of propylene. Ethylene serves as a building block of plastics while propylene is a common plastic.
Aramco has been actively seeking ways to diversify its products and geography.
The company recently proposed a $15 billion investment in the downstream operations of India's Reliance Industries Ltd., which owns a huge refinery and petrochemicals complex in Gujarat. Aramco was earlier reported to be interested in acquiring a 25% interest in Reliance.
In April, Aramco subsidiary Aramco Overseas Company BV signed a deal to take a 17% stake in South Korean refiner Hyundai Oilbank Co. Ltd. for $1.25 billion.
The company also signed an agreement for the acquisition of a 70% stake in Saudi Basic Industries Corp. from the Public Investment Fund of Saudi Arabia for $69.1 billion in March.
In February, the oil giant made a deal to acquire a 9% stake in refinery and petrochemicals firm Zhejiang Petroleum and Chemical Co. Ltd. from the Zhoushan government in China.
