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Tue 28 Jul 2009 08:48 AM

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Aramco, Total seek $8bn loans for new oil refinery

Firms are reported to be raising 16-year loans for new oil plant on Gulf coast.

Saudi Aramco and Total SA are seeking to borrow SR30bn ($8bn) to build an oil refinery on the kingdom’s Gulf coast, according to a report in the Saudi Gazette.

The companies are reported to be raising 16-year loans, sources close to the deal told the paper.

According to the paper, the firms want to borrow $3.5bn from international lenders, $1.5bn from Saudi banks and about $2bn from Saudi government funds. A further $1bn will be raised from lenders, including the Japan Bank for International Cooperation.

Calyon, the investment banking unit of Credit Agricole SA, is advising the venture, the paper said.

Both companies declined to comment.

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