DUBAI, 28 February 2008 — France’s Total and Saudi Aramco are likely to go ahead with plans to build a 400,000 barrels per day (bpd) refinery in the Kingdom despite escalating costs, an industry source in Saudi Arabia said yesterday. “All the indications are good,” the source, who is familiar with the project plans, told Reuters. “There is definitely a willingness on both sides to go ahead and finalize the deal.” Total and Aramco would take a final investment decision on the project in May or June, he added, declining to be identified.

Saudi Insurer Plans $2.1bn IPO in March

Reuters

DUBAI — Saudi Arabia’s United Cooperative Assurance Co. plans to raise up to 8 billion riyals ($2.13 billion) by selling shares to the public starting on March 8, the Saudi stock market said on its website. United Cooperative will sell 8 million shares, equivalent to a 40 percent stake, at SR10 per share in the initial public offering, a filing on the bourse website showed. It was unclear when the statement was posted. The IPO will run from March 8 to 15, the bourse said.

QNB to Acquire 50% of Tunisia Bank

Reuters

DUBAI — State-controlled Qatar National Bank (QNB) said yesterday it was in advanced talks to acquire 50 percent of Tunis-based Tunisian-Qatari Bank, which is equally owned by the governments of Qatar and Tunisia. QNB, which in July stepped up its foreign expansion program, would still need regulatory approval for any final agreement, it said in a statement on the Qatari bourse website. It did not give more details about the talks. Tunisian-Qatari Bank, licensed in 2004, has share capital of 30 million Tunisian dinars ($25 million), according to its website.

Qapco Sees Rise in Chemical Prices

Reuters

DOHA — State-controlled Industries Qatar’s chemicals unit said it expects to benefit this year from higher production and prices for its products, tapping rising demand in Asia. Qatar Petrochemicals Co (Qapco), a venture with France’s Total SA, also said construction of its third low density polyethylene (LDPE) plant — planned for next year — is likely to cost more than initially expected. Output of ethylene, a base chemical used in making plastics and Qapco main product, will probably rise about 38 percent this year to 720,000 tons, compared with 520,000 tons last year after completion in August of a $230 million expansion of an ethane cracker, Qapco General Manager Mohammed Al-Mulla told Reuters.