Saudi Arabia's state-owned energy giant Saudi Aramco and the French multinational integrated oil and gas company Total reached a preliminary deal on Tuesday in order to build a petrochemical complex in the kingdom worth $5 billion, the FT reported. The latest collaboration between the two energy giants is an extension of an existing joint venture called Saudi Arabia Total Refining and Petrochemical (SATORP), which includes a refinery in the city of Jubail which produces 400,000 barrels a day.
According to a joint statement, the complex will be attached to the existing refinery, while engineering and design work is expected to begin in the second half of this year. The timing of the deal coincides with a visit to France by Saudi Arabia's Crown Prince Mohammed bin Salman (pictured left), as part of his global tour designed to attract investment to the Gulf kingdom. The visit already resulted in the signing of a separate $10 billion deal between Saudi Aramco, conglomerate Honeywell and engineering company Technip.
