Petro Rabigh settles for SAR1.2bn with RAWEC

01/01/2014 Argaam

Persuant to what was announced in Tadawul on 18/9/2013 regarding the termination of Rabigh Arabian Water and Electricity Company, Ltd. (RAWEC) services provided to Petro Rabigh; Petro Rabigh announced today on Tadawul that a SAR 1.2bn preliminary settlement reached with RAWEC (the main supplier of utilities for the co.).

The SAR 1.2bn financial package is divided as follows:

  1. SAR 750m cash payment upon signing the final settlement agreement.
  2. SAR 190m reduction in the future tariff value throughout the remaining term of the concession contract.
  3.  SAR 250m as capital investments to improve the reliability of the utilities network that provides Petro Rabigh with electricity and steam.


Since this settlement provides greater benefits for both parties; Petro Rabigh decided to suspend the termination of services notice issued earlier to RAWEC for 3 months.

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