Uchenna Izundu
International Editor
LONDON, June 26 -- Saudi Aramco and Total SA agreed to create the Jubail Refining and Petrochemical Co. during third-quarter 2008 to develop a world-class refinery in Jubail, Saudi Arabia.
The parties signed agreements June 22 pertaining to a 400,000 b/d refinery scheduled to start operations by yearend 2012. It will convert Arabian Heavy crude to high-quality refined products, complying with the most stringent global product specifications.
"As a full-conversion refinery, Jubail will maximize the production of diesel and jet fuels. In addition, the project will produce 700,000 tons/year of paraxylene, 140,000 t/y of benzene and 200,000 tons/y of polymer-grade propylene," the companies said in a joint statement.
Saudi Aramco will have an initial 62.5% stake in the company, with Total taking the remaining 37.5%. Subject to regulatory approvals, the parties plan to offer 25% of the company to the Saudi public while the two founding shareholders each intend to retain a 37.5%. Both will share marketing of the refinery's products.
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