Petro Rabigh has secured a new products marketing deal with founding shareholders Saudi Aramco and Sumitomo Chemicals that will slash their marketing fees. The company says Aramco and Japan’s Sumitomo will “equally handle international marketing of Petro Rabigh’s products [and] are committed to reducing marketing commission by about one-third [whilst] the marketing commission for Petro Rabigh’s refined products has been cancelled.”

The agreement is back-dated to 1 April and will be reviewed after five years. Under the previous agreement, Aramco marketed refined products for Petro Rabigh, while Sumitomo sold chemicals. Petro Rabigh produces 18.4mn tons/year of petroleum products and 2.4mn t/y of ethylene and propylene-based derivatives. It is building Rabigh Phase II, scheduled to begin production of 2mn t/y of aromatics and high value chemicals starting in 2016. (CONTINUED - 271 WORDS)