Saudi Aramco Total (Paris:FP) (LSE:TTA) (NYSE:TOT) Refining and
Petrochemical Company (SATORP) finalized the awarding plan for
Engineering, Procurement and Construction (EPC) contracts that
constitute the thirteen different process packages of their Jubail
joint venture refinery, following a meeting of the SATORP Board of
Directors. The awarding of these contracts marks an important step
in the execution of this 400,000 barrel per day world-class,
full-conversion refinery in Jubail, Saudi Arabia, which plans to be
fully operational by the second half of 2013.
When completed, the export refinery will be one of the most
advanced refineries in the world and will process Arabian Heavy
crude to products fulfilling the most stringent specifications, to
meet rising demand for environmentally-friendly fuels. A portion of
Jubail refinery's production will be consumed locally to meet
spikes in domestic demand. In-Kingdom refineries, such as the
Jubail joint venture, have the location advantage to effectively
and efficiently supply both international and domestic demand.
The full-conversion refinery will maximize production of diesel
and jet fuels, and will also 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.
"Today we are marking a major milestone in our partnership with
Total, which has been strong historically but is now stronger than
ever," said Khalid Al-Falih, President and CEO of Saudi Aramco.
"The Jubail Export Refinery is a strategic project for Saudi Aramco
and the Kingdom of Saudi Arabia, and its timely implementation will
ensure that global and regional markets will be well supplied with
high quality products in the next decade. Our commitment to fund a
project of this scale demonstrates our confidence that energy
markets will grow in the years to come, and our confidence that the
Kingdom is the ideal location for energy investments by global
investors."
"I am delighted that we have decided to launch the development
of the Jubail refinery project with Saudi Aramco," said Christophe
de Margerie, Chief Executive Officer of Total. "Today, we have
passed an important milestone, which shows the quality of the
strategic partnership between our two companies and their
determination to bring off such a far-reaching project, even in a
weaker economic environment. As a result, we will be able to meet,
from 2013, the increasing demand for high-quality refined products
from Asia and the Middle East."
The synergies between Saudi Aramco and Total lie in the fact
that both companies bring knowledge and expertise to the joint
venture company. Saudi Aramco's crude oil supply is located near
Jubail, a world-class industrial area, while Total is an
international oil company with a fully integrated value chain and a
global presence.
The project adds value to the local economy through job creation
and opportunities for further downstream investments by local
businessmen. It is estimated that the refinery will create
approximately 1,200 direct employment opportunities in the Kingdom,
each of which typically creates five to six indirect job
opportunities.
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, and on June 22, 2008, a 'Shareholder Agreement'
was signed in Jiddah, Saudi Arabia, by Saudi Aramco and Total
S.A.
Following the signing of the agreement, SATORP was formed during
the third quarter of 2008, and the project remains on schedule.
Saudi Aramco and Total will ultimately own 37.5 percent of the
company each. Subject to required regulatory approvals, Saudi
Aramco plans to offer 25 percent of the company to the Saudi public
in an Initial Public Offer (IPO) during the last quarter of
2010.
About Saudi Aramco
Owned by the Saudi Arabian Government, Saudi Aramco is a
fully-integrated, global petroleum enterprise, and a world leader
in exploration and producing, refining, distribution, shipping and
marketing. The company manages proven conventional reserves of 260
billion barrels of oil, the largest of any company in the world,
and manages the fourth-largest gas reserves in the world.
In addition to its headquarters in Saudi Arabia's Eastern
Province city of Dhahran, Saudi Aramco has affiliates, joint
ventures and subsidiary offices in China, Japan, the Netherlands,
the Republic of Korea, Singapore, Malaysia, the United Arab
Emirates, the United Kingdom and the United States. More
information about Saudi Aramco can be found at
www.saudiaramco.com
About Total
Total is one of the world's major oil and gas groups, with
activities in more than 130 countries. Its 97,000 employees put
their expertise to work in every part of the industry - exploration
and production of oil and natural gas, refining and marketing, gas
& power and trading. Total is working to keep the world
supplied with energy, both today and tomorrow. The Group is also a
first rank player in chemicals. www.total.com
TOTAL S.A.
Capital 5 929 520 185 euros
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