Saudi Aramco, Total to sign refinery expansion deal next week: report

Saudi Aramco and French oil major Total plan to sign an agreement next week for the expansion of their joint venture refinery in Saudi Arabia, Reuters reported, citing sources familiar with the matter.

The agreement would include an extension of the petrochemical complex at Saudi Arabia Total Refining and Petrochemical (SATORP) refinery in Jubail and could also include adding a cracker unit, sources said.

The agreement is expected to be signed on Tuesday during Crown Prince Mohammed bin Salman’s visit to France, they added.

Saudi Aramco owns 62.5 percent of SATORP, while Total holds a 37.5 percent stake.

Both companies have already been operating the 400,000 barrels per day refinery that’s integrated with petrochemical production and have considered expanding petrochemicals output for several years.

In October, Total said it was in talks with Aramco to expand the SATORP refinery by more than 10 percent.

The companies were also considering building a mixed-feed cracker and derivatives unit in Jubail, near their joint refining complex, industry sources have said.

SATOROP refinery, launched in 2014, is considered one of the world’s most advanced plants producing fuels and plastics.