Jubail refinery to launch in 2013, Saudi-French JV says

Saudi Aramco Total Refinery & Petrochemicals Co. (Satorp) expects its $14 billion refinery at Jubail in Saudi Arabia to be fully operational by yearend 2013.

“Overall engineering, procurement, and construction work at the refinery is 68% complete,” said Satorp Chief Executive Officer Fawwaz Nawwab, adding that Aramco expects to supply the facility with as much as 440,000 b/d of oil for 30 years.

The refinery will process Saudi heavy crude into a range of fuels for domestic consumption as well as for export, with diesel and jet fuel representing 54% of the project’s output at 11.4 million tons/year.

Nawwab estimated that production of gasoline and petcoke will reach 2.8 million tpy and 2.1 million tpy, with the amount available for export dependant on depend on seasonal demand within the kingdom.

“Demand fluctuates with the season how much of the production goes to local versus international market depends on demand,” Nawwab said.

Although Saudi Arabia subsidizes fuel, Nawwab said Satorp will sell its products to Aramco at international prices, and that Aramco would then bear the costs of reselling to the domestic market at discounted rates.

“For Satorp, we sell at international price both to Total and Aramco that is the case by the way for other joint venture refineries in Saudi Arabia,” Nawwab said.

To help finance the refinery project, the venture partners are poised to issue up to $1 billion in Islamic bonds, or sukuk, with final pricing expected by the end of the month.

Final pricing for the sukuk, which will be calculated on the basis of 6-month Saudi interbank offered rate, is expected on Sept. 28 and final allocations are due for completion on Oct. 3, with settlement expected on Oct. 8.

Usman Sikandar, director and co-head of investment banking at Saudi Fransi Capital, said the sukuk would mature about 11 years after completion of the refinery in December 2013.

“This is a very good project, it’s a secure project, the sponsors are guaranteeing this, so the risk factor is very low,” said Nawwab, adding, “The sponsors are committed to maintain their combined equity ownership of 75% in the project.”

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Uganda taps Russian firm to build country’s first refinery

02/17/2015 The government of Uganda has selected a consortium led by Russia’s RT Global Resources, Moscow, as its first choice to construct the country’s firs...

Indian state, Kuwaiti firm sign deal for refinery, petchem complex

02/16/2015 The government of India’s Andhra Pradesh state has entered an agreement with Al Qebla Al Watya Inc., a subsidiary of Mohammed Abdulmohsin Al-Kharaf...

USW union workers add two BP refineries to strike list

02/16/2015 Union workers at two BP PLC-owned refineries in Indiana and Ohio have joined the United Steelworkers union's unfair labor practice strike against t...

Oil, gas, and Wack-O-Wax

02/16/2015 Oil & Gas Journal reported on the Jan. 18 explosion at Petroleo Brasileiro SA's 323,000-b/d Landulpho Alves refinery in Sao Francisco do Conde,...

Mangalore refinery reports steady operations following expansion

02/13/2015 Operations are proceeding smoothly at Mangalore Refinery & Petrochemicals Ltd.’s (MRPL) refinery in Mangalore, India, following the recent comp...

Omsk refinery hits target for Euro 5 diesel output

02/12/2015 JSC Gazprom Neft has switched to the exclusive production of Euro 5-standard diesel fuels at its 21.4 million-tonne/year Omsk refinery in Western S...

Bakken formation pressure standards to take effect Apr. 1

02/10/2015 North Dakota oil and gas regulators ordered operators to condition crude oil from the Bakken, Three Forks, and Sanish formations, effective Apr. 1,...

USW union workers add two BP refineries to strike list

02/09/2015 Union workers at two BP PLC-owned refineries in Indiana and Ohio have joined the United Steelworkers union’s (USW) unfair labor practice (ULP) stri...

Chevron details scheduled maintenance for Cape Town refinery

02/09/2015 Chevron South Africa (Pty.) Ltd., a subsidiary of Chevron Corp., has reported it will begin one of the biggest routine maintenance and safety inspe...

White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

Available Webcasts



Global LNG: Adjusting to New Realties

When Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

When Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST



On Demand

The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected