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Saudis on track for major new refinery

Thursday, March 6, 2008 Free Headline Alerts

ABU DHABI — Saudi Arabia is expected to go through with plans to build a major oil refinery.

The refinery was part of four new facilities meant to bolster the kingdom's domestic refining capacity. Riyad has been pressed by its Western clients to provide refined fuel that would avoid the need to construct new refineries in Europe and the United States.

The state-owned Saudi Aramco has decided to continue its partnership with France's Total and Saudi Aramco to construct a 400,000 barrels per day refinery.

The decision came amid concerns that Riyad would cancel the project amid sharply rising costs. The refinery has been estimated at $10 billion, up from the original figure of $6 billion.

Industry sources said Aramaco and Total planned to make a formal decision on the construction of the refinery by June 2008.

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