22nd May 2006 08:58
Total S.A.21 May 2006 Saudi Aramco and Total Sign Memorandum of Understanding For Proposed Jubail Export Refinery DHAHRAN, SAUDI ARABIA - May 21, 2006 - The Saudi Arabian Oil Company (SaudiAramco) and Total today signed a comprehensive Memorandum of Understanding (MOU)related to the planned development of a 400,000 barrel per day world-class,full-conversion refinery in Jubail, Saudi Arabia. The proposed refinery will be designed to process Arabian Heavy crude and willproduce high-quality refined products that meet current and future productspecifications. The project is currently scheduled to start up in 2011. "This proposed project represents an excellent opportunity to build on theKingdom's strategy of addressing global energy demand while attracting foreigninvestment to expand its economy," said Abdallah S. Jum'ah, Saudi AramcoPresident & Chief Executive Officer. "I am proud that Saudi Aramco can supportthe Kingdom in this process, and I am gratified that our friends and colleaguesfrom Total will be our partners in this world-class project." "Total is proud to have been chosen by Saudi Aramco to build an efficient andfull conversion refinery that will provide the country with an increasedcapacity to meet different markets needs in refined petroleum products. Thisagreement reinforces our presence in Saudi Arabia and through this long termproject strengthens our close cooperation with Saudi Aramco", declares ThierryDesmarest, Total Chairman and Chief Executive Officer. Agreement of the Parties The MOU sets forth the agreement between Saudi Aramco and Total regarding thekey parameters of the project, the project configuration, and a broad range ofthe major technical, commercial, legal, and financial terms. To proceed as quickly as possible with the project, the parties have agreed toundertake without further delay a comprehensive joint Front-End Engineering andDesign (FEED) study. The definitive documents to implement the project will benegotiated in parallel with the joint FEED study. Commercial Structure Saudi Aramco and Total have agreed to form a joint venture company, with SaudiAramco and Total holding an ownership interest of 35% each. Subject to requiredregulatory approvals, the parties are planning to offer up to 30% interest inthe project to the Saudi public. Saudi Aramco will supply the project with400,000 barrels per day of Arabian Heavy crude oil. Saudi Aramco and Total willshare the marketing of the refinery production. Note to editors: Additional information about Saudi Aramco or Total can be foundon the following websites: www.saudiaramco.comwww.total.com "Total is one of the world's major oil and gas groups, with activities in morethan 130 countries. Its 95,000 employees put their expertise to work in everypart of the industry - exploration and production of oil and natural gas,refining and marketing, gas trading and electricity. Total is working to keepthe world supplied with energy, both today and tomorrow. The Group is also afirst rank player in chemicals, www.total.com" This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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