LOS ANGELES, May 22 -- Saudi Aramco signed an agreement May 21 with Total SA to jointly construct a 400,000 b/d export refinery at Jubail with a start-up date of 2011.
The companies agreed to form a joint venture to implement the project, valued at $6 billion. Each will hold a 35% interest. The rest will be offered for public subscription by Saudi nationals.
Aramco and Total agreed to begin a comprehensive front-end engineering and design (FEED) study immediately. The definitive documents to implement the project will be negotiated in parallel with the joint FEED study.
The full-conversion refinery will be designed to process Arabian heavy crude supplied by Aramco. The partners will share the marketing of products.
Aramco officials have said they hope to sign a memorandum of understanding with ConocoPhillips for a 400,000 b/d export refinery in Yanbu by the end of May.
Contact Eric Watkins at [email protected].