Aramco taps banks for $5 billion project finance
Saudi Aramco has approached banks to finance its $5 billion Amiral petrochemical project that the state-owned oil producer plans to develop with France's Total, sources said.
Aramco, the world's largest crude producer, plans to boost investment in refining and petrochemicals to cut reliance on crude as demand for oil slows.
Plans for the giant Amiral petrochemical complex in the Saudi city of Jubail were announced in April. It will be located next to the Satorp refinery, which is also jointly owned and operated by Aramco and Total. Aramco has asked banks to pitch for a financial advisory role and to provide indicative commitments for the financing, two of the sources said.
The companies said this year the facility would comprise a mixed-feed cracker with a capacity to produce 1.5 million tonnes a year of ethylene. It will also have other units producing high-value petrochemicals.
The project, scheduled to start up in 2024, requires investment of about $5 billion. The cracker would feed other petrochemical and specialty chemical plants worth $4 billion to be built by other investors, taking total investment to $9 billion. - Reuters