Aramco, Total award Jubail refinery contracts in Saudi Arabia

The Associated Press ~ staff The News
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CAIRO - Saudi Aramco and France's Total S.A. said Thursday they had finalized contracts for a 400,000 barrel per day joint venture Jubail export refinery.
The refinery - a key part of the oil-rich kingdom's plan to boost overall capacity - is expected to be fully operational by the second half of 2013.
"Our commitment to fund a project of this scale demonstrates our confidence that energy markets will grow in the years to come," Khalid Al-Falih, chief executive of the state-run Saudi Aramco, said in an e-mailed statement.
The statement did not break down the project's cost or name the companies that had been awarded contracts.
The companies had originally planned to award the contracts by the end of 2009, but that deadline was pushed back in an attempt to take advantage of falling global construction costs.
The plant had initially been projected to cost around US$12 billion, but Aramco officials said they wanted to see costs lowered to below $10 billion.
A statement from Total said the contracts will constitute the 13 different "process packages" of the Jubail plant.
The two companies had set up the joint venture Saudi Aramco Total Refining and Petrochemical Company (SATORP) to build and operate the refinery.
Saudi Aramco and Total will ultimately each own 37.5 per cent of SATORP while Aramco plans to offer the remaining 25 per cent to the Saudi public in an IPO during the last quarter of 2010, Total said.
Once operational, the refinery will produce diesel and jet fuels, as well as 700,000 tons per year of paraxylene, 140,000 tons per year of benzene and 200,000 tons per year of polymer-grade propylene.

Organizations: Saudi Aramco

Geographic location: Saudi Arabia, CAIRO, France

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