PARIS, May 14, 2008 (AFP) - The French oil group Total and the Saudi Arabian Oil Company (Saudi Aramco) announced plans Wednesday for a 400,000-barrel-per-day refinery in the eastern Saudi city of Jubail on the Gulf coast.
The groups said in a joint statement that the facility would process Arabian Heavy crude oil, with operations expected to begin at the end of 2012.
A joint venture for the refinery will be formed during the third quarter of 2008, in which Saudi Aramco will initially have a 62.5 percent stake and Total 37.5 percent.
The statement said the two parties would eventually offer 25 percent of the company to investors from the Saudi public, with Saudi Aramco and Total each retaining a 37.5 percent stake.
"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," Saudi Aramco senior vice president Khalid al-Buainain said.
The statement said the refinery would benefit from its proximity to the Arabian Heavy crude supply system and from port and power facilities in Jubail.
The project will "supply growing demand for transportation fuels and petrochemicals, especially in Asia and the Middle East, but also in Europe where the deficit in diesel is growing," said Michel Benezeit, head of Total Refining and Marketing.
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