London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

Saudi Aramco, Total to raise US$8 bln in debt financing for refinery and petrochemical project

March 25/2010

March 25 (plastemart) -- Saudi Aramco and Total SA expect to raise US$8 bln in debt financing for a joint refinery and petrochemical project for Satorp in the coming months. The US$8 bln debt package includes the sale of Islamic bonds, or sukuk. The 400,000 bpd refinery in Jubail will cost more than US$12 bln. The cost, including financing expenses, will also be funded by Saudi Arabia, which will contribute over US$1 bln to the project and by the partners equity. The project Satorp is expected to start operation in mid-2013.


Aramco is investing in refining capacity even though returns are currently poor. Globally, refiners have postponed expansion projects and idled plants as the global recession eroded demand and squeezed profit margins. The company is likely to develop integrated refining and petrochemical plants for all future projects to add value by using products from refining for chemical production. Aramco may sell part of its stake in the project in an initial public offering in 2011 or 2012, so that 25% of Satorp will be publicly traded. Aramco and Total would then hold equal 37.5% stakes.

 

mrcplast.com

Saudi Aramco, Total to raise US$8 bln in debt financing for refinery and petrochemical project

 


Tags:No
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe