Saudi Aramco and Total create the Jubail Refining and Petrochemical Company

Source: www.gulfoilandgas.com 6/22/2008, Location: Middle East

The Saudi Arabian Oil Company (Saudi Aramco) and Total signed the Shareholders Agreement and other core agreements for the establishment of their joint venture, the Jubail Refining and Petrochemical Company. The signing of these agreements in Jiddah by Mr. Abdallah S. Jum’ah, President and CEO of Saudi Aramco, and Mr. Christophe de Margerie, CEO of Total, marks an important step for the planned construction of this 400,000 barrel per day world-class, full-conversion refinery in Jubail, Saudi Arabia.

On May 6 and May 8, 2008, respectively, the Executive Committee of Total and the Board of Directors of Saudi Aramco decided to launch the project.

“The Jubail refinery reflects the leadership of Saudi Aramco and Total in our strategic alliance to address the existing mismatch between refinery infrastructure and types of crude oil on the market, and the resulting tightness in the refining sector,” said Mr. Jum’ah. “It also demonstrates our commitment to increase capacity to meet various global markets’ needs for refined products.”

“The Jubail refinery project is a brilliant example of a strong strategic partnership with a major oil-producing country. Together, Saudi Aramco and Total will contribute to supply growing demand for transportation fuels and petrochemicals, especially in Asia and the Middle-East, but also in Europe where the demand for diesel and jet fuels continues to grow,” Mr. de Margerie said at the signing ceremony.

The refinery will process Arabian Heavy crude to high–quality refined products that will meet the most stringent global product specifications and is expected to begin operations at the end of 2012. As a full-conversion refinery, Jubail will maximize the production of diesel and jet fuels. In addition, the project will produce 700,000 tons per year (t/y) of paraxylene, 140,000 t/y of benzene and 200,000 t/y of polymer-grade propylene.

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

Following the signing of the agreements, the Jubail Refining and Petrochemical Company will be formed during the third quarter of 2008. Saudi Aramco will initially own 62.5 percent of the company and Total will own the remaining 37.5 percent. Subject to required regulatory approvals, the parties are planning to offer 25 percent of the company to the Saudi public while the two founding shareholders each intend to retain a 37.5 percent ownership interest. Saudi Aramco and Total will share the marketing of the refinery’s products.

Saudi Aramco and Total have just released invitations-to-bid for the project’s construction, with a view to awarding all packages during the first quarter of 2009. The first orders for long-lead items will be placed in July 2008 and the project will be introduced to the lending community in the second part of 2008, with a targeted financial close in early 2009.


Brazil >>  8/8/2022 - In a recently signed contract, ICM, Impacto Energia S/A and its sister company, Impacto Bioenergia, have agreed to build a new dry-mill ethanol produc...
Greece >>  8/4/2022 - Neste and HELLENIC PETROLEUM Group have entered into an agreement for the commercial distribution of Neste MY Sustainable Aviation FuelTM on flights b...

Germany >>  8/1/2022 - Shell International Petroleum Co Ltd and the Lufthansa Group have signed a Memorandum of Understanding (MoU) for exploring the supply of SAF at airpor...
United States >>  8/1/2022 - Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, has entered into a non-binding agreement with Capchem Technolog...

Saudi Arabia >>  7/27/2022 - Dow (NYSE: DOW) and the Al-Hejailan Group signed a Memorandum of Understanding (MoU) to form a joint venture to design, build and operate a methyl die...
Netherlands/Holland >>  7/18/2022 - NEXTLOOPP, launched in October 2020, aims at creating circular food-grade recycled polypropylene (FGrPP) from post-consumer packaging. LyondellBasell,...

Related Categories: Agents, Anti-foaming  Aromatic Solvents  Butene  Cleaning  Corrosion Inhibiting  Crude Oil  Diesel Fuel  Ethylene  Fluids Drilling, Completion, Workover & Stimulation  Fluids/Chemicals  Fracturing Sand  Fuel oil  Gasoline (Lead free)  General  Grout  Jet fuel  Kerosene. Domestic use  Lubricants, Oils & Greases  Nitrogen  Oil Treating & Refining  Polyethylene  Polyvinyl chloride  Propane  Sand, Sandblast  Summer Diesel  Surfactants 

Related Articles: Aromatic Solvents  Butene  Cleaning  Corrosion Inhibiting  Crude Oil  Diesel Fuel  Ethylene  Fluids Drilling, Completion, Workover & Stimulation  Fluids/Chemicals  Fracturing Sand  Fuel oil  Gasoline (Lead free)  General  Jet fuel  Kerosene. Domestic use  Lubricants, Oils & Greases  Nitrogen  Oil Treating & Refining  Polyethylene  Polyvinyl chloride  Propane  Sand, Sandblast  Surfactants 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.