MARAFIQ reaches settlement with Aramco on heavy fuel supply to Yanbu 2

MARAFIQ reaches settlement with Aramco on heavy fuel supply to Yanbu 2

Power and Water Utility Company for Jubail and Yanbu (MARAFIQ) reached an amicable settlement with Saudi Arabian Oil Co. (Saudi Aramco) on the supply of heavy fuel oil (HFO) to MARAFIQ’s facility in Yanbu 2, as stated in the prospectus.

Under the settlement, Saudi Aramco will pay approximately SAR 70 million, and MARAFIQ will be exempt from paying certain handling fees, as well as operation, maintenance, and rental fees for specific facilities over varying timeframes, with an amount not more than nearly SAR 15 million annually until 2033, according to a statement to Tadawul.

MARAFIQ had stated in its prospectus that it signed an agreement in 2016 with Saudi Aramco for supply of HFO as primary fuel and Arab Light crude as backup fuel for the Yanbu 2 power and water plant, Argaam earlier reported.

MARAFIQ explained that Saudi Aramco has not supplied the Yanbu 2 plant with the agreed primary fuel—heavy fuel oil—since 2016.