Aramco, Total sign jv to create Jubail Petchem Co

23 June 2008 05:18  [Source: ICIS news]

DUBAI (ICIS news)--Saudi Arabian Oil Co (Saudi Aramco) and France’s Total have signed a joint venture (JV) to establish the 400,000 bbl/day Jubail Refining and Petrochemical Co, it said.

The full-conversion refinery to be set up in Jubail would process Arabian heavy crude to high–quality refined products and was expected to begin operations at the end of 2012, it added in a statement late on Sunday.

As a full-conversion refinery, Jubail would maximize the production of diesel and jet fuels, while also producing 700,000 tonnes/year of paraxylene, 140,000 tonnes/year of benzene and 200,000 tonnes/year of polymer-grade propylene, it said.

The refinery would benefit from its proximity to the Arabian heavy crude supply system and from the facilities of the Jubail Industrial City such as King Fahad Industrial Port, power and water grids, and residential areas, it added.

The Jubail Refining and Petrochemical Co will be formed during the third quarter of 2008 and Saudi Aramco will initially own 62.5% of the company and Total will own the remaining 37.5%, the statement said.

Subject to regulatory approvals, the parties planned to offer 25% of the company's shares to the Saudi public while the two founding shareholders would retain 37.5% ownership interest. Saudi Aramco and Total will share the marketing of the refinery’s products, it added.

The companies have just released invitations-to-bid for the project’s construction, with a view to awarding the packages during the first quarter of 2009.

To discuss issues facing the chemical industry go to ICIS connect

By: Abdelghani Henni
65 6780 4359

< previous article(VIDEO - ICIS news Asia Lunchtime Bulletin 16 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly