It has been announced that Saudi Aramco will partner ConocoPhillips and Total to develop two separate refinery projects.
The partnerships will see two refineries constructed in the Kingdom of Saudi Arabia, with the ConocoPhillips project to be built in the Yanbu Industrial City and the Total project to be built in Jabail.
Both refineries are being designed to cope with Arabian heavy crude supplied by Saudi Aramco, and will produce high-quality, ultra-low sulfur products to meet stringent global specifications.
They will both have an output in the region of 400,000 barrels per day (bbl/d). The Yanbu refinery is expected to be operational by 2013, while the Jabil refinery should be online by 2012.
"These facilities will bolster the Kingdom's refining capacity, and provide additional quantities of high quality refined products for global and domestic markets, as well as job opportunities. The partnerships are important to Saudi Aramco - they are an important aspect of our company's expanding downstream business portfolio," Khalid G. Al-Buainain, Saudi Aramco Senior Vice President of Refining Marketing and International said.
Total and Saudi Aramco will form a venture company in the third quarter of 2008 for the refinery project. Michael Bénézit, President of total Refining and Marketing, is delighted with the deal. "Launching this project is a major achievement, enabling Total and Saudi Aramco to build a strong strategic partnership. By developing this world-class project in Jubail, Saudi Aramco and Total will contribute to supply growing demand for transportation fuels and petrochemicals, especially in Asia and the Middle-East," Bénézit said.
ConocoPhillips are also planning a joint-venture company with Aramco, with the possibility of offering an interest in the refinery to the Saudi public. "ConocoPhillips is pleased to continue working with Saudi Aramco towards adding needed capacity to the international refining system," said Jim Gallogly, ConocoPhillips executive vice president of refining, marketing, and transportation. "The Yanbu project fits well with the company's overall strategy to invest in projects that expand our global refining presence and provide significant new supplies of clean products in an environmentally sound manner," he added.
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