Saudi Arabia’s Rabigh Refining and Petrochemical Company (PetroRabigh), a joint venture of Saudi Aramco and Japan’s Sumitomo, has issued a notice to Rabigh Arabian Water and Electricity Company (RAWEC) with the intention to terminate its water and energy conversion agreement (Weca).

The notice of cancellation of the contract is the result of two blackouts of the power and steam supplies from RAWEC between 29 December 2012 and 11 September 2013, according to a statement issued by PetroRabigh.

The notice will result in the ownership of the RAWEC’s assets being transferred to PetroRabigh, which will enable PetroRabigh to manage the power, steam and the rest of RAWEC’s current facilities.

PetroRabigh has also sent further notices to RAWEC to demand direct compensation estimated to value SR187.5m ($49.86m) for damages caused by the two blackout incidents.

The Saudi joint venture will also conduct an evaluation into the financial impact of the termination of the Weca agreement.

RAWEC is a special purpose vehicle (SPV) set up to develop, own and operate Rabigh’s independent water, steam and power project (IWSPP).

Sponsors in the SPV are affiliates of Japanese firms Marubeni Corp, JGC Corporation and Itochu Corporation, and Saudi Arabia’s Acwa Power.