Rabigh II project raises over $5bn in funding
The $8bn project to expand Saudi Aramco/Sumitomo's huge plant at Rabigh will largely complete later this year
Petro Rabigh, the joint venture between Saudi Aramco and Japan's Sumitomo Corporation, has announced that it has raised over $5bn (SR19.4bn) to fund the proposed $8bn Phase II expansion project at its huge refinery on the Kingdom's west coast.
Project funding was raised from a variety of sources, including nine international banks and 10 providers of local and Islamic funding.
The financing was arranged by Sumitomo Mitsui Banking Corporation and the Saudi British Bank.
Constructon of phase II of the Rabigh refinery is already well-advanced.
A group of nine contractors were appointed to build the plant, which will be capable of refining 40,000 barrels per day, in late-2012. The include Japan's JGC Corp, the UK's Petrofac, Tecnicas Reunidas, Daelim, Hanwha Engineering & Contracting, Hyundai, SK Engineering, and Hitachi Plant Technologies.
The bulk of construction work is expected to complete at the end of this year, with production scaling up from the start of next year.
Once complete, the entire complex will produce five million tons per annum (MTPA) of petrochemicals and 15 MTPA of refined petroleum products.
Rabigh Phase II will also include a 2,000MW Integrated Water and Power Plant being built at a cost of $1.2bn that is currently being built by Samsung C&T and $878m of the funding is being used as a loan to help build this.
It is being developed by a consortium that includes Saudi Electricity Company, Samsumg C&T and Acwa Power, which has a 20-year agreement in place to provide electricity to Saudi Electricity Company.
Law firm Dentons advised on the project financing and its project finance partner, Udayan Mukherjee, said: "This is a landmark project and we are delighted to see it achieve financial close. The size and number of different financing tranches, including funding from governmental agencies, 19 regional and international banks, and different types of Islamic financing structures, demonstrates the strong appetite in the market for projects of this nature."