Saudi Arabia aims to diversify its energy resources by turning to solar and nuclear power generation to reduce its need to burn fuel oil and preserve its oil for lucrative export markets.

“We are really working big time in renewable energy. We are working in solar energy as a start, but also we are discussing the potential for nuclear energy,” PCMC CEO Gasem Al-Shaikh said in an interview on the sidelines of the MEPEC conference in Manama. 

Earlier this year, French nuclear group Areva signed a partnership agreement with the BinLadin Group for nuclear and solar energy.

PCMC was one of the major shareholders in Advanced Refineries and Petrochemicals Co. (ARPC) — a company formed for the development of the Jizan refinery and which is no longer in operation.

ARPC submitted bids for Jizan last year, as part of a consortium with Saudi industrial group Tasnee and Saudi Nama Chemicals Group, but lost the bid to Saudi Aramco.

The Kingdom had hoped the refinery would be built and owned entirely by the private sector, a first in the world’s top exporter, but the plan failed to generate interest from foreign investors, who were concerned that the cost of supplying crude to the plant could make it unprofitable in the future.

After the loss of the Jizan bid, PCMC turned to Senegal, where the BinLadin Group was already present, to build a new international airport in Dakar.

“We have (also) been invited by the (Senegal) government to look for opportunities in the oil and gas business, it’s a good start ... I wish we were doing it in Saudi Arabia, but we will keep trying,” ” Shaikh said. 

PCMC plans to raise the capacity of Senegal’s only refinery to almost 100,000 barrels per day by 2016 from its current level of around 30,000 bpd, Sheikh said.

It holds a 34 percent stake in the refinery, while French oil major Total has 20 percent and the government of Senegal holds the rest.

The refinery, which will use a mix of Nigerian and Brazilian crude, will help Senegal cut the fuel oil imports it uses for power generation.

“As per our agreement with the government, once the financial close happens, we will acquire 17 percent more to be a 51 percent shareholder ... (but) even if we raise our equity shares in the refinery, our expectation is that Total will maintain their 20 percent stake.”

Shaikh said the company is considering gas concessions in the West African country.

“We have been offered by the government to go and take some concessions there. We are discussing with some partners in the area; the plan is to go probably in joint ventures to explore more and more for the gas.”