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SATORP signs 13 Contracts for its Mega Jubail Exports Refinery Project

07 July 2009
Dhahran -- The signing ceremony of 13 Engineering, Procurement and Contracting (EPC) contracts awarded for Saudi Aramco Total Refining and Petrochemical Company ( SATORP )'s mega-project - the Jubail Export Refinery, took place today.
The agreements were signed by SATORP 's President & CEO, Salem H. Shaheen, and the Presidents of the contractor companies.
The ceremony was attended by the Chairman of SATORP 's Board of Directors, Engr. Samir A. Al-Tubayyeb, together with a number of Saudi Aramco and Total officials, as well as representatives from the contractor companies.
With a total investment amounting to US $9.6 billion, the Jubail Refinery joint venture stands out as one of the most strategic projects for both Saudi Aramco and the Kingdom of Saudi Arabia.
On its completion, the new refinery will be one of the most advanced refineries worldwide, transforming Arabian Heavy Crude into high specification products that are intended to meet the ever increasing demand for environment-friendly fuel types. Efficiently benefiting from its strategic location to meet both local and international demand.
In his opening speech, Engr. Salem H. Shaheen, SATORP 's President & CEO, emphasized that the Company has awarded 15 pre-planned EPC contracts to a number of highly experienced local and international companies for the execution of its joint venture project.
Shaheen said that SATORP had encouraged local companies to participate in the execution of this huge project and to compete for the EPC contracts, in line with the Company's policies and objectives.
Consequently, following the bidding results that were announced in synchronization with the 5th Board of Directors meeting held recently in Paris, a number of contracts were awarded to Saudi entities.
Shaheen also commented that 25% of the Company's shares will be timely offered to the Saudi nationals in an Initial Public Offer (IPO) after finalization of the relevant procedures, eventually leaving Saudi Aramco and Total each with a 37.5% share of the Company's ownership.
He added that this project is a clear indication of how stable the investment environment in Saudi Arabia is in various economic sectors, which has prompted many international companies to seek local investment opportunities.
Shaheen also pointed out that the project will 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 5 to 6 indirect job opportunities.

© Saudi Press Agency 2009

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