Memo. of Understanding signed
Total S.A.
21 May 2006
Saudi Aramco and Total Sign Memorandum of Understanding For Proposed Jubail
Export Refinery
DHAHRAN, SAUDI ARABIA - May 21, 2006 - The Saudi Arabian Oil Company (Saudi
Aramco) and Total today signed a comprehensive Memorandum of Understanding (MOU)
related to the planned development of a 400,000 barrel per day world-class,
full-conversion refinery in Jubail, Saudi Arabia.
The proposed refinery will be designed to process Arabian Heavy crude and will
produce high-quality refined products that meet current and future product
specifications. The project is currently scheduled to start up in 2011.
'This proposed project represents an excellent opportunity to build on the
Kingdom's strategy of addressing global energy demand while attracting foreign
investment to expand its economy,' said Abdallah S. Jum'ah, Saudi Aramco
President & Chief Executive Officer. 'I am proud that Saudi Aramco can support
the Kingdom in this process, and I am gratified that our friends and colleagues
from Total will be our partners in this world-class project.'
'Total is proud to have been chosen by Saudi Aramco to build an efficient and
full conversion refinery that will provide the country with an increased
capacity to meet different markets needs in refined petroleum products. This
agreement reinforces our presence in Saudi Arabia and through this long term
project strengthens our close cooperation with Saudi Aramco', declares Thierry
Desmarest, Total Chairman and Chief Executive Officer.
Agreement of the Parties
The MOU sets forth the agreement between Saudi Aramco and Total regarding the
key parameters of the project, the project configuration, and a broad range of
the major technical, commercial, legal, and financial terms.
To proceed as quickly as possible with the project, the parties have agreed to
undertake without further delay a comprehensive joint Front-End Engineering and
Design (FEED) study. The definitive documents to implement the project will be
negotiated in parallel with the joint FEED study.
Commercial Structure
Saudi Aramco and Total have agreed to form a joint venture company, with Saudi
Aramco and Total holding an ownership interest of 35% each. Subject to required
regulatory approvals, the parties are planning to offer up to 30% interest in
the project to the Saudi public. Saudi Aramco will supply the project with
400,000 barrels per day of Arabian Heavy crude oil. Saudi Aramco and Total will
share the marketing of the refinery production.
Note to editors: Additional information about Saudi Aramco or Total can be found
on the following websites:
www.saudiaramco.com
www.total.com
'Total is one of the world's major oil and gas groups, with activities in more
than 130 countries. Its 95,000 employees put their expertise to work in every
part of the industry - exploration and production of oil and natural gas,
refining and marketing, gas trading and electricity. Total is working to keep
the world supplied with energy, both today and tomorrow. The Group is also a
first rank player in chemicals, www.total.com'
This information is provided by RNS
The company news service from the London Stock Exchange
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