Oil Major Total and Aramco Sign $5B Deal to Build Jubail Petrochem Complex
PARIS, April 10 (Reuters) - French oil and gas major Total on Tuesday signed a $5 billion deal with Saudi Aramco to build a giant petrochemical complex at their 440,000 barrels-per-day Jubail Satorp refinery.
Saudi Aramco holds a 62.5 percent stake in the refinery, while Total holds the other 37.5 percent. The memorandum of understanding (MoU) was signed on the sidelines of a visit by Saudi Crown Prince Mohammed bin Salman in Paris.
"The project will represent an investment of around $5 billion. The two partners are planning to start the front-end engineering and design in the third quarter of 2018," Total said in a statement.
Total added that 8,000 jobs would be created by the deal.
The complex will comprise a mixed-feed steam cracker with a capacity of 1.5 million tons per year of ethylene and related high-added-value petrochemical units, the statement said.
The cracker will feed other petrochemical and specialty chemical plants representing an overall amount of $4 billion investment by third party investors, it said, taking the total investment to $9 billion.
"This project illustrates our strategy of maximizing the integration of our large refining and petrochemical platforms and of expanding our petrochemical operations from low-cost feedstock, to take advantage of the fast growing Asian polymer market," said Total's chief executive Patrick Pouyanne.
(Reporting by Bate Felix; Editing by Sudip Kar-Gupta)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Total Says Libya's NOC Knew Of Plans To Buy Marathon's Business (Apr 25)
- Total, Google Cloud Team Up to Develop Oil, Gas AI Solutions (Apr 25)
- Les Echos: Novatek CEO Says He Believes Total Will Join Arctic LNG 2 (Apr 25)
Company: Saudi Aramco more info
Operates 45 Offshore Rigs
- Saudi Aramco to Lift Oil-Trading Volume to 6 Million Barrels/Day (Apr 23)
- Oil Major Total and Aramco Sign $5B Deal to Build Jubail Petrochem Complex (Apr 10)
- India Prepared to Give Saudi Aramco 50 pct Stake in Planned Mega Refinery (Apr 10)