AL KHOBAR, Saudi Arabia, March 29 (UPI) -- State oil company Saudi Aramco was awarded a loan from the Islamic Development Bank to join Total in the construction of an oil refinery in Jubail.
The Islamic Development Bank in Saudi Arabia granted Saudi Aramco a $120 million loan to build a refinery with French supermajor Total in Jubail on the Saudi coast of the Persian Gulf.
Saudi Aramco would take full ownership of the Jubail plant following an initial public offering scheduled within the next three years, the Gulf Daily News reports.
Salem Shaheen, the chief executive officer at the Total-Saudi Aramco consortium, said deals worth around $8 billion to cover the cost of the refinery should develop by the end of 2010 at the latest.
Additional funding will come from Saudi commercial banks, the IDB and international lenders including Citigroup and Deutsche Bank.
The Jubail refinery is expected to produce 400,000 barrels of oil per day by 2013.
Total in a statement said the refinery will be one of the most advanced in the world, processing heavy Arabian crude products to meet demands for environmentally friendly fuel supplies.