REG-TotalEnergies SE Aramco and TotalEnergies to Build a Giant Petrochemical Complex in Saudi Arabia

TotalEnergies SEAnnouncement

15/12/2022 13:15

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Aramco and TotalEnergies to Build a Giant Petrochemical Complex in Saudi
Arabia

 

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The Saudi Arabian Oil Company (“Aramco”) and TotalEnergies (Paris:TTE)
(LSE:TTE) (NYSE:TTE) have taken the final investment decision for the
construction of a world scale petrochemical facility in Saudi Arabia. The
“Amiral” complex will be owned, operated, and integrated with the existing
SATORP refinery located in Jubail on Saudi Arabia’s eastern coast. The
investment decision is subject to customary closing conditions and approvals.

The petrochemical facility will enable SATORP to convert internally produced
refinery off-gases and naphtha, as well as ethane and natural gasoline
supplied by Aramco, into higher value chemicals, helping to advance Aramco’s
liquids to chemicals strategy.

The complex will comprise of a mixed feed cracker capable of producing 1.65
million tons per annum of ethylene, the first in the region to be integrated
with a refinery. It will also include two state-of-the-art polyethylene units
using Advanced Dual Loop technology, a butadiene extraction unit, and other
associated derivatives units.

The project alone represents an investment of around $11 billion, of which $4
billion will be funded through equity by Aramco (62.5%) and TotalEnergies
(37.5%). Its construction is scheduled to begin during the first quarter of
2023 with commercial operation targeted to start in 2027.

Eventually, the complex will provide feedstock to other petrochemical and
specialty chemical plants, located in the Jubail industrial area, which will
be built, owned and operated by globally renowned downstream investors,
entailing an estimated additional $4 billion of investments. This will support
the establishment of key manufacturing industries such as carbon fibers,
lubes, drilling fluids, detergents, food additives, automotive parts and
tires.

The overall complex, including adjacent facilities, is expected to create
7,000 local direct and indirect jobs.

In July 2022, SATORP was the first MENA refinery to be certified ISCC+, an
international recognition towards its circular initiatives, such as the
recycling of plastic and used cooking oil. A first batch of recycled plastic
was processed by the refinery in November 2022.

Saudi Aramco Chief Executive Officer Amin H. Nasser said: “Our long-standing
relationship with TotalEnergies has been further strengthened by this
important project, which represents an opportunity for us to showcase the
potential for cutting edge liquids to chemicals technologies that support the
circular economy. 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.”

Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies said:
“We are 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 & petrochemicals platform in the
world. It also deepens the exemplary relationship between our two companies
over many decades in the Kingdom of Saudi Arabia. This world-class complex
also fits with our strategy to expand sustainably in petrochemicals by
maximizing the synergies within our major platforms.”

***

About SATORP:

The Saudi Aramco TotalEnergies Refining and Petrochemical Company (SATORP),
the first such joint venture between the two energy companies, was established
in June 2008 to build a refining and petrochemical complex in Jubail II
industrial city. The refinery, whose capacity increased from 400,000 barrels
per day (bpd) of crude oil at its start-up in 2014 to 460,000 bpd today, is
recognized as one of the most efficient in the world.

About TotalEnergies:

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to energy that is
ever more affordable, cleaner, more reliable and accessible to as many people
as possible. Active in more than 130 countries, TotalEnergies puts sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.

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About Saudi Aramco:

Aramco is a global integrated energy and chemicals company. We are driven by
the core belief that energy is opportunity. From producing approximately one
in every eight barrels of the world’s oil supply to developing new energy
technologies, our global team is dedicated to creating impact in all that we
do. We focus on making our resources more dependable, more sustainable and
more useful. This helps promote stability and long-term growth around the
world. www.aramco.com
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Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in
this document are used to designate TotalEnergies SE and the consolidated
entities that are directly or indirectly controlled by TotalEnergies SE.
Likewise, the words “we”, “us” and “our” may also be used to refer
to these entities or to their employees. The entities in which TotalEnergies
SE directly or indirectly owns a shareholding are separate legal entities.
This document may contain forward-looking information and statements that are
based on a number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither TotalEnergies SE
nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
otherwise. Information concerning risk factors, that may affect
TotalEnergies’ financial results or activities is provided in the most
recent Registration Document, the French-language version of which is filed by
TotalEnergies SE with the French securities regulator Autorité des Marchés
Financiers (AMF), and in the Form 20-F filed with the United States Securities
and Exchange Commission (SEC).

TotalEnergies 

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com
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Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)

Saudi Aramco Contacts 

International Media Relations: international.media@aramco.com 
(mailto:international.media@aramco.com) 
Investor Relations: investor.relations@aramco.com
(mailto:investor.relations@aramco.com)



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