Jan 14 2012 |
more articles from
|
UPDATE: Saudi Aramco, Sinopec Sign Yanbu Refinery Deal
Saturday, Jan 14, 2012
-- Total cost Put at $8.5 billion
-- May use debt to finance project
-- Growing energy ties with China
(updates with more details)
DHAHRAN , Saudi Arabia (Dow Jones)--State-giant Saudi Arabian Oil Co., or Aramco, Saturday signed a deal with China Petrochemical Corp. (SNP), or Sinopec Group, to develop a 400,000-barrel-a-day oil refinery at Yanbu, on the Saudi Red Sea coast.
"We will enter into discussions about what is the optimal capital structure. And if we choose to finance the project ... and the cost of debt will be capitalized, and the cost of the project can grow above $8.5 billion," al-Falih said.
U.S. oil major ConocoPhillips (COP) last year pulled out of the Yanbu project after deciding to cut back on refining and marketing activities.
The Aramco-Sinopec deal marks the latest effort by China and Saudi Arabia to strengthen energy ties.
Last year, Aramco agreed an initial deal with PetroChina Co. (PTR) to supply crude oil to a new refinery in southwest China, in a move that will help cement Saudi Arabia's position as China's top crude supplier.
China surpassed the U.S. as the biggest importer of oil from Saudi Arabia in 2009, and the kingdom's crude is an increasingly important factor in powering the nation's growth.
Energy demand is rising rapidly in China, driven by rapid industrialization and a growing middle class.
Saudi Arabia shipped nearly 45.5 million tons of crude to China between January to November last year, up from 44.6 million tons in 2010, according to data from China's General Administration of Customs.
Significant volumes are shipped to a Sinopec-operated joint venture refinery in southern China's Fujian province, in which Aramco has a near-25% stake.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
14-01-12 1325GMT
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
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. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment