Saudi Aramco confirms new Jubail, Yanbu refinery projects

May 17, 2008

The Saudi Arabian Oil Company (Saudi Aramco) announced two joint venture agreements for the construction of refineries in Saudi Arabia with the Houston-based ConocoPhillips and France’s Total this week.

Yesterday, Aramco and the Houston-based ConocoPhillips announced the approval of continued funding for the development of the Yanbu Export Refinery Project.

The two companies will construct a 400,000 bpd, full-conversion refinery in the Yanbu Industrial City. The refinery is being designed to process Arabian heavy crude that will be supplied by Saudi Aramco. Expected to open in 2013, the Yanbu refinery will produce high-quality, ultra-low sulfur refined products.

ConocoPhillips and Saudi Aramco are planning to form a joint-venture company, with equal interests to own and operate the proposed new refinery. Subject to required regulatory approvals, the companies plan to offer an interest in the refinery to the Saudi public.

According to the agreement signed May 14 with Total, the two companies plan to invest in a 400,000 bpd world-class, full-conversion refinery in Jubail. The refinery will process Arabian heavy crude and high-quality refined products. It is expected to begin operations at the end of 2012.

A joint venture company for the Jubail 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%. Subject to required regulatory approvals, the parties are planning to offer 25% of the company to the Saudi public.

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