| 08 Jul 2009 |
|
Aramco, Total sign $9.6bn deals
- Text size
DHAHRAN: Saudi AramcoSaudi Aramco
and France's TotalTotal on Tuesday signed contracts worth $9.6 billion in engineering, procurement and contracting (EPC) deals. The contracts are with 13 contractors who will build the 400,000 bpd Jubail export refinery. The joint venture is seen as a key part of the Kingdom's plan to boost overall capacity.The project suffered delays as the two companies looked to capitalize on lower construction costs and bring the overall price tag to below $10 billion. The refinery, which will process Arabian heavy crude, is expected to be fully operational by the second half of 2013.
He pointed out that the company had awarded 15 pre-planned EPC contracts to a number of highly experienced local and international companies for the execution of its joint venture project. He said SATORP encouraged local companies to participate in the execution of this mega project and to compete for the EPC contracts in line with the company's policies and objectives. He said 25 percent of the company's shares would be offered to Saudi nationals in an initial public offering (IPO) after the finalization of relevant procedures. "This will eventually leave Saudi AramcoSaudi Aramco and TotalTotal each with a 37.5 percent share of the company's ownership," Shaheen said. He said the mega-project was a clear indication of how stable the investment environment in Saudi Arabia was in various economic sectors. The stability has prompted many international companies to seek local investment opportunities. Shaheen also pointed out that the project would add value to the local economy by providing jobs and creating more investment opportunities for Saudi businessmen during subsequent industrial stages. It is estimated that the refinery will produce about 1,200 direct employment opportunities, each of which will provide five to six indirect job opportunities.
Also present at Tuesday's signing ceremony was Chairman of SATORP's board of directors Samir A. Al-Tubayyeb and a number of other Saudi AramcoSaudi Aramco
and TotalTotal officials, as well as representatives from the contractor companies and the media.The EPC contract for permanent infrastructure went to Al-Osais Contracting Co; the refinery tank farm contract was awarded to Petro Steel; the pipelines and off plot facilities contract went to Gulf Consolidated Contractors Co. Ltd.; the auxiliary utilities to Mohammed Rashid Khathlan Est. for Contracting; the aromatics contract went to Samsung Engineering Co.; the sulfur/amine to Daelim Industrial Co. Ltd.; the interconnecting utilities to Technip SpA; the plant utilities contract was awarded to S.K. Engineering and Construction; the distillation and hydrotreating to Tecnicas Reunidas; the port tank farm to Dayim Punj Lloyd Construction Contracting Co. Ltd; the coker contract went to Chiyoda/Samsung; the conversion contract was awarded to Technip SpA and the telecommunication system contract to Sumitomo Corporation.
SATORP had earlier signed two contracts with two Saudi companies. Site preparation for temporary construction facilities contract was awarded to Abdul Rahman M. Al-Shalawi Est. for Contracting and the contract for building temporary construction facilities was awarded to Contracting and Construction Enterprises Ltd.
By Siraj Wahab
© Arab News 2009
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Loading ...
Post a Comment
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.