We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Tue 7 Jul 2009 04:07 PM

Font Size

- Aa +

Saudi Aramco, Total sign $9.6bn refinery deal

Companies ink 13 agreements to build joint venture facility in the kingdom.

Saudi Aramco, Total sign $9.6bn refinery deal
MEGA DEAL: Saudi Aramco and Total on Tuesday signed a $9.6bn refinery deal. (Getty Images)

Saudi Aramco and France's Total signed on Tuesday 13 agreements with contractors to build a $9.6 billion joint-venture refinery in the kingdom, state news agency SPA reported.

The two companies awarded the contracts for the 400,000 barrels per day (bpd) refinery last month. Spain's Tecnicas Reunidas and France's Technip won three of the biggest contracts offered.

The contract award was delayed by several months as Aramco and Total forced bidders to price in lower commodity and contracting prices in their bids. The final contracts awarded came in some $2.4 billion below the highest estimate for the refinery cost of $12 billion.

Aramco has since relaunched the bidding process for a second 400,000 bpd export refinery in a joint venture with ConocoPhillips. That process was halted last year due to uncertainty in global financial markets. (Reuters)

Arabian Business: why we're going behind a paywall

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.