Saudi Aramco and Total Sign Refinery Deals Worth $9.6bn


State-owned Saudi Aramco and French oil company Total have signed 13 different engineering procurement and construction (EPC) agreements for their previously announced $9.6bn joint venture refinery in Jubail, Saudi Arabia.

The contracts, announced in June 2009, have been awarded to companies such as Spain's Tecnicas Reunidas and France's Technip, Reuters reported.

The 400,000 barrels per day refinery has been delayed as the companies were involved in price negotiations with the bidders to lower project costs.

The plant is expected to be operational by the second half of 2013.

In June, Saudi Aramco revived plans to build another 400,000 barrel per day refinery in Yanbu in a joint venture with ConocoPhillips.

The project, which was delayed after crude prices fell in 2008, is in the bidding process and is scheduled to begin operations in the third quarter of 2014.