Petro Rabigh to raise capital through SAR 9.2 bln rights issue

Rabigh Refining and Petrochemical Co. (Petro Rabigh) will increase its capital through a SAR 9.2 billion rights issue, pending the approval of its extraordinary general meeting, it said in a statement to the Saudi bourse.

The company previously said it would raise capital by SAR 7.04 billion, but adjusted its plans after costs increased by SAR 1 billion at its Rabigh Project (Phase II) due to global market conditions and the oil market glut.

The second phase of the project is currently being finalized to increase Ethane Cracker Unit capacity to 125 million standard cubic feet daily by Q1-2016.

Accordingly, the total cost of the facility is now SAR 31 billion.

The project’s construction works will be completed in September 2016, which is nine months behind schedule. Operations will kick-start by H2-2016.

Petro Rabigh is a 50-50 joint venture between Japan’s Sumitomo Chemicals and state-owned energy firm Saudi Aramco.