Saudi Aramco, Sinopec sign MoU for refinery joint venture

17 March 2011 03:39  [Source: ICIS news]

GUANGZHOU (ICIS)--Saudi Aramco and China's Sinopec have signed a memorandum of understanding (MoU) to jointly develop a 400,000 bbl/day refinery in Yanbu on the west coast of Saudi Arabia, the companies said on Thursday.

The two companies signed the MoU on Wednesday in Beijing, the companies said in separate statements.

Under the initial agreement, Saudi Aramco would hold a 62.5% interest in the joint venture, Red Sea Refining Co (RSRC), while Sinopec would hold the remaining 37.5% stake.

The refinery is expected to start operations in 2014 and will use existing Saudi Aramco facilities to receive crude oil and export refined products, they said.

It would process Arabian Heavy crude oil to yield high-quality refined products for both Saudi and global markets.

The refinery would be able to produce 90,000 bbl/day of gasoline, 263,000 bbl/day of ultra-low sulphur diesel, 6,300 tonnes/day of petcoke and 1,200 tonnes/day of sulphur, the companies said.

For more on Saudi Aramco and Sinopec, visit ICIS company intelligence

By: Fanny Zhang
+65 6780 4359

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