
TOKYO - Saudi Arabia's state oil company Aramco has raised its stake in Japanese oil refiner Showa Shell Sekiyu K.K., part of a move to increase its market share in the world's second-biggest oil importing country.
Showa Shell said in a statement on Tuesday that Aramco has bought an additional 5 percent from Royal Dutch/Shell Group, taking its holding to 14.96 percent.
The extra stake is part of a deal last year under which Aramco bought an initial 9.96 percent of Showa Shell with an option for the further 5 percent.
Financial terms were not disclosed, but the 5 percent stake would be worth 21.3 billion yen ($194.8 million) based on Showa Shell's closing share price on Monday. After the transaction, Royal Dutch/Shell's holding in Showa Shell will drop to 35.04 percent.
With the initial deal last year, Saudi Arabia replaced the United Arab Emirates as Japan's top crude oil supplier. Aramco nearly doubled its supply to Showa Shell to about 300,000 barrels per day (bpd). Saudi Arabia supplies about the same volume of crude to Japan's biggest refiner, Nippon Oil Corp., which accounts for about a quarter of Japans refining capacity of 4.76 million bpd. In April, Saudi Arabia supplied Japan with about 1.09 million bpd of crude oil, or about 28 percent of Japan's total crude oil imports of 3.84m bpd, according to the Ministry of Economy, Trade and Industry.
PIN/REUTERS
News ID 56209
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