DUBAI - Saudi Arabia's SABIC said on Wednesday it had signed an agreement with the Japan Saudi Arabia Methanol Company (JSMC), renewing its partnership in the Saudi Methanol Company (Ar-Razi) for another 20 years.

Under the agreement, SABIC will raise its stake in Ar-Razi to 75 percent by purchasing half of JSMC's share, which represents 25 percent of all Ar-Razi shares, reducing JSMC’s stake in Ar-Razi to 25 percent, the company said in a statement.

Under the previous arrangement, SABIC had the right to buy the 50 percent share held by JSMC in Ar-Razi on the agreement’s expiry on Nov. 29.

(Reporting by Maha El Dahan; Editing by Mark Potter) ((Maha.Dahan@thomsonreuters.com; + 9712 4082101; Reuters Messaging: maha.dahan.thomsonreuters.com@reuters.net))