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Reports state that Saudi Aramco, along with their partner Total of France, has finalized a loan agreement deal for $1.3 billion US.  This financing from the Saudi Public Investment Fund is the latest development in the joint venture oil refinery project.

The Jubail-based plant is set to produce 400,000 barrels per day and falls right in line with Saudi Arabia’s goal of increasing the nation’s refining capacity.  Currently at 2.1 million barrels per day, the leading oil exporter in the world wants to nearly double that capacity.

Saudi Aramco Total Refining and Petrochemical Company, the official name of the joint venture, reported that $8.5 billion US of the total $12.8 billion US has been raised.

Satorp stated that the current amount of financing was obtained from a variety of sources such as $4.01 billion US from the PIF and the Export Credit Agencies and $4.49 billion US from commercial financial establishments.

Scheduled to begin processing in 2013, the joint refinery is set to produce an amount equal to 50 per cent of the daily production at Moneefa.  That Saudi Arabian oilfield has an output of 900,000 barrels per day.  The Jabail refinery is expected to have an output of 190,000 barrels of diesel per day, 90,000 barrels of gasoline and 50,000 barrels of kerosene per day.

Currently Aramco owns 62.5 per cent of the joint refinery and Total controls the balance.  In two or three years an initial public offering will reduce Aramco’s stake to an amount even with Total’s.