The Saudi Arabian Oil Company (Saudi Aramco) and Total have signed the Shareholders Agreement and other core agreements for the establishment of their joint venture, the Jubail Refining and Petrochemical Company : a 400,000 bpd world-class, full-conversion refinery. The company will feed growing demand for transportation fuels and petrochemicals from Asia, Middle-East and Europe where the demand for diesel and jet fuels continues to grow.
The refinery will process Arabian Heavy crude to high-quality refined products and is expected to begin operations at the end of 2012. As a full-conversion refinery, Jubail will maximize the production of diesel and jet fuels. In addition, the project will produce 700,000 tpa of paraxylene, 140,000 tpa of benzene and 200,000 tpa of polymer-grade propylene.
Saudi Aramco will initially own 62.5% of the company and Total will own the remaining 37.5%. Subject to required regulatory approvals, the parties are planning to offer 25% of the company to the Saudi public while the two founding shareholders each intend to retain a 37.5% ownership. Saudi Aramco and Total will share the marketing of the refinery's products.
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