Rabigh In Utility Payment Deal

Saudi petrochemicals producer Petro Rabigh, a joint venture of Saudi Aramco and Japan’s Sumitomo, has signed a final settlement agreement with utilities provider RAWEC over power and steam outages which caused damage to the company’s ethane cracker. Two blackouts in RAWEC’s utilities plant required a shutdown of the 95mn cfd cracker for repairs, contributing to a slide in Petro Rabigh’s profits to SR359.2mn ($95.8mn) in 2013 from SR488.9mn ($130.4mn) in 2012 (MEES, 24 January).

Petro Rabigh says the agreement requires RAWEC to:

• Pay SR750mn in cash by 7 June;

• Reduce its tariff for power and utilities by SR187.5mn over the remainder of the BOO contract period, which runs until 2033; and


DON'T HAVE AN ACCOUNT?


NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?

By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.

UPGRADE