The agreement is to build a massive petrochemical complex in Saudi Arabia
Saudi Aramco and Total have entered into a memorandum of understanding to build a giant petrochemical complex in Saudi Arabia.
In a move designed to fully exploit operational synergies, the complex will be integrated downstream of the SATORP refinery, a joint venture between Saudi Aramco (62.5%) and Total (37.5%) in Jubail. This world-class refinery is recognized as being one of the most efficient in the world, whose capacity increased from 400,000-barrel-per-day at its start-up in 2014 to 440,000-barrel-per-day, currently.
Representing an investment of around $5 billion, the two partners are planning to start the front-end engineering and design (FEED) in the third quarter of 2018.
With the cracker feeding other petrochemical and specialty chemical plants, an overall amount of $4 billion investment is represented by third party investors. $9 billion will be invested in total with the creation of 8,000 local direct and indirect jobs. More than 2.7 million metric tons of high value chemicals will be produced by the project.
Amin H. Nasser, President and Chief Executive Officer of Saudi Aramco, said, “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. Our joint venture SATORP is a remarkably successful model of industry partnership and we are keen to build on this success to further underpin Saudi Aramco’s strategy to expand its capacity in the chemicals sector by 2030.”
“This project illustrates our strategy of maximizing the integration of our large refining and petrochemical platforms and of expanding our petrochemical operations from low-cost feedstock, to take advantage of the fast growing Asian polymer market,” said Patrick Pouyanné, Chairman and CEO of Total. “Furthermore, this project will enable us to strengthen our ties with Saudi Aramco, with whom we successfully operate our biggest and most efficient refinery in the world. Finally, it will contribute to the Vision 2030 of the Kingdom by creating 8,000 jobs and bringing in new high-added-value technologies.” PWKD16042018