French oil group Total and the Saudi Arabian Oil Company (Saudi Aramco) have announced plans for a 400,000 bpd refinery in the city of Jubail on the Gulf coast. The facility would process Arabian Heavy crude oil, with operations expected to begin at the end of 2012.
A joint venture for the refinery will be formed during Q3-2008, in which Saudi Aramco will initially have a 62.5% stake and Total 37.5%. The two partners will eventually offer 25% of the company to investors from the Saudi public, while retaining a 37.5% stake. The project will supply growing demand for transportation fuels and petrochemicals, especially in Asia and the Middle East, and also in Europe where the deficit in diesel is growing.