A Japanese syndicate has agreed a buyer’s credit agreement for up to US$400mn for Saudi Aramco Total Refining and Petrochemical Company (SATORP).

Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ, SMBC and the Japan Bank for International Cooperation (JBIC) have all agreed to finance the deal, which will be backed by Japan’s export credit agency, Nippon Export and Investment Insurance (Nexi).

Mizuho also acted as the agent for the facility.

The project, which is run as a joint venture between Saudi Arabian Oil Company and Total, will build and operate a refinery capable of 400,000 barrels of crude oil a day, primarily for processing into high-value products such as diesel, jet fuel and gasoline.

The refinery will be on Saudi’s east coast, in the Jubail Industrial City.

In a statement, JBIC comments: “This is a very significant project for Saudi Arabia’s industrial policy, which aims to produce and export large volumes of high value-added oil products, since the country is moving to transform its industrial structure that is heavily dependent on crude oil exports.”

"JBIC will support the export of Japanese plant facilities and machinery to this project, thereby contributing to the country’s economic development.”

Other than the US$400mn facility, the project has received support from a number of international sources, including the Export-Import Bank of Korea, the Korea Export Insurance Corporation, France’s Coface and a wealth of Saudi-based funds and banks.