Petro Rabigh is a Saudi Arabian company that was created in August 2005 following a signed agreement between Saudi Arabia and Sumitomo Chemical. The ultimate goal of this business is to develop a broad petrochemical area while also upgrading the oil refinery run by Saudi Aramco, holder of the most oil reserves in the world.
Both Saudi Aramco and Sumitomo equally share 75 percent ownership in the country, with the remaining 25 percent shared by stockholders who purchased equity through an IPO in January 2008.
The unique geography of the plant, which is located just off the Red Sea, makes it ideal for international shipping purposes. The inclusion of Sumitomo was to take advantage of their skills when it comes to petrochemical production.
Seven months after that agreement was signed, construction began on a 3,000-acre site that was formerly a topping refinery for Saudi Aramco. That was followed three years later by the start of production.
The full daily capacity of the refinery can handle 400,000 barrels of oil, 15,000 barrels of butane and 95 million cubic feet of ethane. Every year, the collective output of 23 production plants is able to produce 2.4 million tons of derivatives that are either propylene or ethylene-base as well as 18.4 million tons of petroleum-based items.
Using these products helps eventually produce such items as clothing, carpeting, plastics and rope. That’s in addition to the variety of fluids like shampoo, coolants and paints that find their way to everyday uses.
Some items stay within the borders of Saudi Arabia, though most goes to countries around the world. Exports to Asia and Europe ports are a common sight, with China being the company’s largest client.
Approximately 2,000 people employed for regular operation, though that job total is expected to virtually double by 2020.