Construction has commenced on PETRORabigh, the US$9.8 billion refining and petrochemical complex in Saudi Arabia. 25% of the project's capital would be floated for public subscription, resulting from direct orders from Custodian of the Two Holy Mosques King Abdullah.
Earlier Sumitomo had opposed the flotation, feeling it was premature and that more cash should be raised from the offering than the 25-30% suggested. The offer would take place and how many shares would be offered, would be announced after the joint-venture partners complete talks with the Saudi Capital Markets Authority.
Rising costs of raw materials inflated costs by 70% for Petrorabigh, which had an initial value of US$4.5 billion. The project comes amid a sharp increase in construction costs in the Gulf region.
20-Mar-06 
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