Saudi Aramco and Total Confirm Jubail Refinery Project

Saudi Arabian oil company Saudi Aramco and Total have confirmed their decision to invest in a 400,000 barrel per day, full-conversion refinery in Jubail, Saudi Arabia.

The refinery will process Arabian heavy crude to refined products that will meet the global product specifications and is expected to begin operations at the end of 2012.

The refinery will benefit from the proximity to the Arabian heavy crude supply system and from the facilities of the Jubail industrial city such as King Fahad Industrial Port, power and water grids and residential area.

A joint venture company for the refinery will be formed during the third quarter of 2008. Saudi Aramco will initially own 62.5% of the company and Total will own the remaining 37.5%.

Khalid Al-Buainain, senior vice president of refining marketing and international at Saudi Aramco, said: “At Saudi Aramco we are pleased to announce our commitment to strengthen our strategic partnership with Total by moving forward with the Jubail export refinery project. Our vision of this world-class refinery is to further expand the kingdom’s refining and petrochemical infrastructure and create job opportunities here at home.”