Aramco, Marubeni sign off Rabigh IWSPP

26 August 2005
Saudi Aramco has announced the formal signing of the 25-year build-own-operate-transfer (BOOT) contract to develop the captive independent water, steam and power project (IWSPP) to serve the estimated $8,000 million integrated refinery and petrochemicals complex at Rabigh. The consortium of Japan's Marubeni Corporation, along with partners Itochu Corporationand JGC Corporation, both of Japan, and the local Acwapower, was named preferred bidder in early June by the project sponsor, Rabigh Refining & Petrochemical Company (Petro-Rabigh), the recently-formed joint venture of Saudi Aramcoand Japan's Sumitomo Chemical Company(MEED 10:6:05).

The oil-fired IWSPP will have generating capacity of 360 MW, in addition to substantial steam and water production. Japan's Mitsubishi Heavy Industries, the consortium's nominated main contractor, will carry out the engineering, procurement and construction (EPC) element on a lump-sum turnkey (LSTK) basis. The plant is expected to come on stream in the summer of 2008.

Also signed was the 25-year water and energy conversion agreement (WECA) governing the relationship and supply and offtake agreements between the consortium and Petro-Rabigh. The scheme will be financed by a loan from Petro-Rabigh from the financing package for the entire Rabigh conversion project (MEED 15:7:05). Marubeni is the main shareholder in the consortium, with a 30 per cent stake. JGC and Itochu hold 25 per cent and 20.1 per cent respectively. Acwapower has a 23.9 per cent holding, while Petro-Rabigh will retain a 1 per cent stake.

Rabigh is the kingdom's second private power project after the Shouaiba independent water and power project (IWPP - see below).

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