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FINANCIAL NEWS
PetroRabigh expansion bids to be floated by mid-2011
22 Jun 2010
(MENAFN) PetroRabigh’s Chief Executive, Ziad Al-Labban, announced that tenders for an expansion of Sumitomo Chemical and Saudi Aramco’s joint venture PetroRabigh are expected to be floated by mid-2011, Reuters reported.
The founding shareholders of the $10 billion venture, which is called Rabigh Refining and Petrochemical Co, are carrying out front-end engineering studies in Japan, he said, assuring that tenders should be floated by mid-2011 if everything goes as planned.
Results of the studies are expected by the end of this year, after which a final decision on the expansion would be made, Al-Labban said. Analysts estimated the expansion to cost $6.67 billion but Al-Labban said he could not confirm the figure.
The firm produces 18 million tons per annum of refined products, 75 percent of it used locally, and 2.4 million tons of petrochemicals, 90 percent of which is exported.
Al-Labban said that the gasoline, diesel, fuel oil and about 50 percent of the jet fuel are consumed domestically while the naphtha and nearly 50 percent of the jet fuel is exported. PetroRabigh produces 60,000 barrels of gasoline a day and sells it all in Saudi Arabia.
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