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Saudi Aramco to borrow $10 billion for expansion projects

by ChemOrbis Editorial Team - content@chemorbis.com
  • 26/03/2015 (14:56)
According to media reports, Saudi Arabia’s state oil company Aramco has reached an agreement with some global and regional banks in order to borrow $10 billion for the their refining and petrochemical expansion projects. Sources stated that the transaction is now at the documentation stage and that the company is expected to close the deal within a few days.

Aramco, which is the world’s largest oil company in terms of crude production and exports, aims to boost ties with Asia and is said to be considering acquiring refining and petrochemical companies. The transaction includes two tranches of 7.5 billion riyals ($2 billion) for five years and 3.75 billion riyals ($999 million) for one year. Aramco purchased a $2 billion stake in South Korean refiner S-Oil Corp and is also said to be a potential bidder for a minority stake in the synthetic rubber arm of German chemical company Lanxess AG.

Previously, the company announced that they had allocated an additional $7 billion for domestic shale gas drilling projects. This investment brings the company’s total investment in domestic shale gas developments to $10 billion.

In addition, Saudi Arabia’s PetroRabigh, a joint venture between Saudi Aramco and Japan’s Sumitomo Chemical, has signed a loan agreement worth around 19.4 billion riyals ($5.2 billion) for the expansion project known as Rabigh Phase II. The total cost of the project is estimated at 30 billion riyals ($7.9 billion). The project is slated to come online in 2016.
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