ABU DHABI (Zawya Dow Jones)
Total S.A. (TOT) expects capital expenditure on its planned joint venture refinery with Saudi Arabian Oil Co., or Aramco, at Jubail on the Persian Gulf to come down amid falling commodity prices, with project startup still seen at 2013, the company's chief economist said Tuesday.
Total and Aramco have extended the bidding period for the 400,000-barrel a day export refinery for the second time to increase competition and take into account the fall in commodities, notably steel, Pierre Sigonney said.
"The contractual strategy has been optimized to stimulate competition," Sigonney said, adding that the plant was expected to start up in 2013.
"It's a strategic project for Total, with strong commitment," he added.
Aramco and Total signed in June 2008 the agreement to build their project in Jubail, on Saudi's east coast, originally estimated to cost more than $10 billion. Under the agreement, the joint venture will see Aramco hold a 62.5% stake and Total 37.5%.
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