Saudi Aramco, Total sign $9.6B refinery deals

State run oil giant Saudi Aramco and France’s Total S.A. on Tuesday signed $9.6 billion in deals with contractors to build the 400,000 barrel per day Jubail export refinery, one of the oil-rich kingdom’s top projects.

The two companies awarded 13 contracts for the project, the official Saudi Press Agency reported.

The Jubail refinery is seen as a key part of Saudi Arabia’s plan to boost overall capacity. But the joint venture had suffered delays as the two companies looked to capitalize on lower construction costs and bring the overall price tag to below $10 billion.

Last month, Aramco and Total said they had finalized contracts for the refinery, which will process Arabian heavy crude and is expected to be fully operational by the second half of 2013.

On June 30, Aramco and ConocoPhillips said they had revived plans to build another 400,000 barrel per day refinery in the Red Sea city of Yanbu. The project, which was delayed as crude prices plunged last year, is in the bidding process and is targeted for the third quarter of 2014.