Saudi Aramco to self-finance JV

Saudi Arabian Oil Co. (Saudi Aramco) said it will self-finance half of the US$8 billion cost of a 400,000 barrels per day (bpd) refinery at Jubail, a joint venture project with French company Total SA set for completion in March 2013. The remaining US$4 billion will come from the sale of products when commercial operations start in March 2013. Saudi Aramco holds a 62.5% stake in the Saudi Aramco Total Refinery and Petrochemical Co. (Satorp) and Total the remaining 37.5%. Some equity will be offered to Saudi investors at a later date to help meet the cost of the project, initially estimated at over US$10 billion. Saudi Aramco and Total awarded the first of 15 contracts for the Jubail integrated oil refining and petrochemicals complex, stressing at the time their commitment to the project. The first award for temporary construction facilities went to Saudi Arabian contractor Contracting and Construction Enterprises. A second, unspecified contract was awarded, also to local Saudi company Abdul-Rahman Al-Shalawi. The project involves building and operating a world-class grass-roots refinery and processing 400,000 bpd of Arabian Heavy crude to produce gasoline, diesel, jet fuel and petrochemical products for export and domestic consumption. The refinery will process heavy crude oil from the 900,000 bpd Manifa field, which is being de-mothballed and was due for completion by June 2011. (April 12, 2009)