"Al-Eqtisadiah" from Riyadh
Saudi Aramco and Lanxess, German chemical company, have reached an agreement that Aramco will acquire Lanxess' stake in the Netherlands -based joint venture, Arlanxeo, which was launched by the two companies in 2016.
Saudi Aramco's planned acquisition of Lanxess' 50 per cent stake in the Arlanxeo project is valued at € 1.5 billion based on the full value of the facility.
Aramco has the entire Arlanxeo project, which will diversify Aramco's portfolio of refining, processing and marketing projects. It also enhances its capabilities throughout the oil value chain.
Commenting on the agreement, Abdulaziz Al-Qadimi, Saudi Aramco's senior vice president for refining, treatment and marketing, said that this planned acquisition is an important element in achieving Saudi Aramco's strategic goal of becoming the world's largest integrated energy and chemical company.
He added, "Aramco's acquisition of the Arlanxeo project is a confirmation of the company's strategy to further diversify its portfolio of refining, processing and marketing projects.
It also enhances its capabilities at various stages of the oil and chemical industry value chain, and accelerating its growth in the field of butane-derived chemicals, including butadiene and isopotoline.
Arlanxeo is one of the world's leading manufacturers of industrial rubber and elastomer plastics, which is supplied to major tire manufacturers and auto parts manufacturers around the world.
With Saudi Aramco's full acquisition of the project, Arlanxeo can act as a catalyst to develop growth opportunities in the Kingdom, taking advantage of Saudi Aramco's strong position in terms of values.
According to a statement from Aramco, Arlanxeo will support Saudi Aramco's sustainability efforts to improve fuel efficiency associated with tire performance, delivering a savings rate of up to 7 per cent. This would help in reinforcing Aramco's fuel and engine research and development strategy, which focuses on increasing fuel efficiency and reducing emissions from future engines.
This is largely in line with Saudi Aramco's comprehensive strategy for refining, processing and marketing, which aims to enhance value across the hydrocarbon chain by expanding and integrating its business and partnerships, and generating additional revenue streams.
Following the acquisition of Aramco, Arlanxeo will continue to play its role in the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber, especially for major tire and automotive manufacturers, and will retain its current headquarters in Maastricht, the Netherlands.
Saudi Aramco and Lanxess agreed to the deal that is subject to regulatory approvals and consultation with the competent authorities representing the employees. The transaction is expected to be completed by the end of December.
Aramco Technology, Inc., a subsidiary of Saudi Aramco, Mazda and the National Institute of Advanced Industrial Science and Technology in Japan, launched a collaborative research program to develop advanced fuel engines and significantly improve their efficiency in order to reduce carbon dioxide emissions.
The joint program is expected to be completed in financial year 2020, with contributions from researchers from all three parties continuing to develop its technology.
Eng. Ahmed Al-Khuwaiter, Chief Technical Officer at Saudi Aramco, said that the cooperation research with Mazda and the National Institute of Advanced Industrial and Technical Sciences confirms our commitment to providing advanced technical solutions that "will have a profound impact on the problems that we face on the ground, particularly in terms of sustainability of future mobility at affordable prices."
The new engine technologies will continue to prove that the internal combustion engine will remain the most cost-effective, as well as its ability to reduce emissions of greenhouse gases from the transport sector, with the potential to produce tremendous results.
Saudi Aramco is contributing a new type of fuel with low carbon content. Mazda offers a prototype of an advanced high-performance engine based on its own SkyActiv technology.
All tests and research work are carried out at the headquarters of the National Institute of Advanced Industrial and Technical Sciences in Tokyo.
The program includes an assessment of CO 2 emissions from the well to the vehicle through refinery modeling, engine testing, fuel spray characteristics, and fluid dynamics simulation. The program is expected to achieve methodological benefits and provide an overview of the environmental impact of internal combustion engines.
Aramco has continued its intensive efforts over the years in the joint development of fuels and engine research as part of its program to create world-class technologies for transport.
The company also supports gasoline compression ignition technology as a development pathway to achieve high levels of fuel efficiency while reducing emissions and developing new fuel formulations that will complement the concept of the development of this model of engines.
The gasoline pressure ignition concept, which is the main project under this research program, will contribute to the reduction of carbon dioxide emissions by between 25 and 30 percent compared to gasoline engines operating with conventional ignition lights based on assessment from the well to the vehicle.
The prototype of the advanced engine developed by Mazda is based on a fuel-saving combustion technology.
Gasoline ignition engines are characterized by their low carbon content and high thermal value compared with diesel and commercial gasoline.
These super-fuel engines produce less carbon dioxide emissions than traditional gasoline engines.
