TOKYO, 22 June 2005 — Saudi Aramco has raised its stake in Japan’s sixth largest oil refiner Showa Shell Sekiyu KK to 14.96 percent, a statement said yesterday, amid global uncertainty about oil supplies.
Saudi Aramco bought an additional five percent stake, or 18.84 million shares, from the Royal Dutch Shell Group for an undisclosed amount, reducing the Anglo-Dutch oil giant’s stake to 35.04 percent from 40.04 percent, a Showa Shell statement said.
By increasing its stake in Showa Shell, Saudi Aramco stands to profit more from sales of refined oil products in Japan, the world’s third largest oil-consuming nation.
The increased stake also gives Showa Shell a more assured supply of oil from Saudi Aramco, a strategic advantage at a time when growth in global oil demand threatens to outstrip supply.
On Monday, world oil prices struck a historic high level close to $60 a barrel as speculators seized upon concerns about possible shortages later this year. Prices fell in trade yesterday.
Saudi Arabia is the largest oil supplier to Japan, providing about 28 percent of its imports of 3.84 million barrels per day in April, according to the Ministry of Economy, Trade and Industry.