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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 (CONTINUED - 286 WORDS)