Saudi Arabia: Saudi Aramco and Total Sign a Memorandum of Understanding to Build a Giant Petrochemical Complex
10 Avril 2018 - 2:45PM
Business Wire
Regulatory News:
During the official visit to Paris by Crown Prince of Saudi
Arabia, HRH Mohammed bin Salman, Saudi Aramco and Total (Paris:FP)
(LSE:TTA) (NYSE:TOT) signed a memorandum of understanding to build
a giant petrochemical complex in Jubail, Saudi Arabia.
The complex will be integrated downstream of the SATORP
refinery, a joint venture between Saudi Aramco (62.5%) and Total
(37.5%) in Jubail, in a move designed to fully exploit operational
synergies. This world-class refinery, whose capacity increased from
400,000-barrel-per-day at its start-up in 2014 to
440,000-barrel-per-day today, is recognized as being one of the
most efficient in the world.
Located next to the SATORP refinery in the same industrial area,
the complex will comprise a world-size mixed-feed steam cracker
(50% ethane and refinery off-gas) with a capacity of 1.5 million
tons per year of ethylene and related high-added-value
petrochemical units. The project will represent 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.
The cracker will feed other petrochemical and specialty chemical
plants representing an overall amount of $4 billion investment
by third party investors.
In total, $9 billion will be invested, creating 8,000 local
direct and indirect jobs. The project will produce more than 2.7
million metric tons of high value chemicals.
“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,“
commented Amin H. Nasser, President and Chief Executive Officer of
Saudi Aramco. “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,"
commented 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.”
* * * * *
About Saudi Aramco
Saudi Aramco is a leading global integrated energy and chemicals
company. We are driven by the core belief that energy is
opportunity. From producing approximately one in every eight
barrels of the world’s oil supply to developing new energy
technologies, our global team is dedicated to creating impact in
all that we do. We focus on making our resources more dependable,
more sustainable and more useful. This helps promote stability and
long-term growth around the world. www.saudiaramco.com
Forward looking statement disclaimer: This press release
may contain certain statements, estimates, or projections that
constitute forward-looking-statements. Generally, forward-looking
statements comprise any statement regarding potential future
results or developments. These statements, estimates, and
projections are subject to risk and uncertainty that could cause
actual results to differ materially.
* * * * *
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 employees are committed to better
energy that is safer, cleaner, more efficient, more innovative and
accessible to as many people as possible. As a responsible
corporate citizen, we focus on ensuring that our operations in more
than 130 countries worldwide consistently deliver economic, social
and environmental benefits.
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms “Total” and “Total Group”
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
“we”, “us” and “our” may also be used to refer to subsidiaries in
general or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
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