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Total, Saudi Aramco Sign Deal To Build Petrochemical Complex In Jubail

10 April 2018

The forum is organized by the Saudi Center for Strategic Partnerships as part of the activities held on the sidelines of the visit paid to France by Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense.

"We are especially honoured for His Royal Highness to witness the signing of MoUs and announcements that further strengthens Aramco's commitment to supporting USA economic growth and development through Downstream investments while also significantly investing in exploration and production technologies and innovative solutions aligned with Saudi Vision 2030 that will serve both our nations over the long term", he added.

The complex will be integrated downstream of the SATORP refinery, a joint venture between Aramco (62.5%) and Total (37.5%).

Saudi Arabia's national oil company Saudi Aramco on Saturday is expected to disclose initial steps towards a multibillion-dollar chemical plant in Texas, according to sources familiar with the company's US operations.

Front-end engineering and design for the complex will start in the third quarter of 2018.

"The agreement deepens the exemplary relationship enjoyed by our two companies over many decades". It is one that has evolved from a standard buyer-seller arrangement to one imbued with common interests to further develop and diversify our businesses.

Total said total capital expenditure (capex) for the project would stand at around $5bn.

Saudi Arabia, the world's biggest oil exporter, is planning to almost double its refining capacity from current 5.4 million barrels of oil per day by expanding in the kingdom and overseas, where it has stakes in refineries in China, the United States, Japan and South Korea.

Saudi Aramco expects to invest between $8 billion and $10 billion dollars in the projects, pending the evaluations.

The other MoU would allow Aramco to use Technip FMC's mixed-feed ethylene production technologies in the U.S. The technology would produce 2 million tons a year of ethylene, a building block for most plastics.

French oil and gas major Total on Tuesday signed a $5 billion deal with Saudi Aramco to build a giant petrochemical complex at their 440,000 barrels-per-day Jubail Satorp refinery.

Total's CEO, Patrick Pouyanne, said production from the complex would target the growing Asian urban, middle class markets and their need for polymers.

Aramco and Saudi Basic Industries Corporation, the region's biggest petrochemical producer, are building a $20bn oil-to-chemicals plant, which is expected to yield 9 million metric tonnes of products a year.

Total, Saudi Aramco Sign Deal To Build Petrochemical Complex In Jubail