French oil major Total and state-run Saudi Aramco have completed an $8.5 billion financing for their joint refinery in the kingdom, the companies said in a statement on Friday.

"Finances totalling $8.5 billion were secured from multiple sources including $4.01 billion from the Public Investment Fund and Export Credit Agencies (covered and direct), and $4.49 billion from commercial financial institutions. The senior loan facilities have a tenor of 16 years with an all in pricing of 1.85% (above LIBOR) for the U.S. dollar commercial and Export Credit Agencies (ECA) covered loan facilities," the statement said.

The 400,000 barrel-per-day Jubail refinery, 62.5% owned by Saudi Aramco and 37.5% by Total, is scheduled to be operational by 2013, it added. It is to produce 700,000 tons per year of paraxylene, 140,000 tpy of benzene and 200,000 tpy of polymer-grade propylene. Jubail is among the new plants Saudi Arabia, the world's top oil exporter, is planning as it looks to boost domestic refining capacity.

The $8.5 billion financing was due to be signed on Tuesday.

(6/28/2010)