Saudi Aramco will sign here Sunday an agreement of strategic partnership with the French company Total. The first outcome of the signing will be a giant refinery in the Eastern province. The two sides will launch a joint project to establish and own a giant oil refinery in Jubail Industrial City at an estimated cost of nearly SR22.5 billion. The refinery is expected to operate in 2011. It is also planned to produce and export oil products and petrochemicals. The two company will. The signing ceremony will take part Sunday at the Hilton Hotel. Earlier in 2006, Saudi Aramco and Total signed a Memorandum of Understanding (MOU) related to a 400,000 barrel-per-day, outstanding refinery. According to that MoU, Saudi Aramco will supply the project with daily quantities of Arabian heavy crude oil, while the two companies will share the marketing production of the factory. The two sides have agreed to form a joint venture company, having an ownership stake of 35 percent each to put the project into operation; the remaining 30 percent will be offered for public subscription. “Subject to required regulatory approvals, the parties are planning to offer up to 30 percent interest in the project to the Saudi public,” a top official told the Saudi press Agency SPA two weeks ago. The new Jubail refinery will be designed to process Arabian heavy crude and will produce high–quality of refined products that consider the product future specifications. “This project will represent an excellent chance to build on the Kingdom's strategy of addressing global energy demand through attracting foreign investment to expand its economy,” said Abdallah Al- Jum'ah, president and chief executive officer of the Saudi Aramco. and. Total is one of the world's major oil and gas companies. The company is operating in more than 130 countries, with a total number of 190.000 employees. __
