Aramco, TotalEnergies invest $11 billion in new oil complex in Saudi Arabia

Aramco, TotalEnergies invest $11 billion in new oil complex in Saudi Arabia

December 16, 2022









TotalEnergies announced Thursday that it will join forces with the Saudi Arabian Oil Company (Aramco) in investing around $11 billion to build a new petrochemicals complex in Saudi Arabia.

According to its statement, Aramco will fund 62.5% of the project through equity, while TotalEnergies will cover 37.5%. The complex will be owned and operated by both companies and will be integrated with Saudi Arabia Total Refining and Petrochemicals (SATORP), located in Jubail on Saudi Arabia’s eastern coast.

“With this collaboration we aim to expand the value chain by producing advanced chemicals more efficiently than ever before, accelerating industrial progress in the kingdom,” wrote Saudi Aramco CEO Amin H. Nasser.

In parallel, TotalEnergies CEO Patrick Pouyanné said that he is “delighted to write a new page of our joint history by launching this expansion project, building on the successful development of SATORP, our biggest and most efficient refining and petrochemicals platform in the world.”

Construction is set to begin in the first quarter of 2023 with operation planned for 2027. Final conditions and approvals are still pending.

Why it matters: The project will provide an estimated 7,000 new jobs in Saudi Arabia and will allow the conversion of “refinery