White & Case Advises Saudi Aramco on Extension of Three Power and Steam Plants
Global Law Firm White & Case advises Saudi Aramco in relation to the extension of three cogeneration plants on a BOOT basis in the Eastern Province of the Kingdom of Saudi Arabia.
The extension, which achieved financial close on May 3, 2011, will generate additional capacity of 536MW and 868 tons/hr of steam and will take place under Energy Conversion Agreements (offtake contracts) between Saudi Aramco and Tihama Power Generation Company Limited ("Tihama Power"), a special purpose vehicle owned 60 percent by International Power-GDF Suez and 40 percent by Saudi Oger. Engineering, Procurement and Construction will be carried out by Hyundai Heavy Industries of South Korea and General Electric will supply the gas turbines. Construction at all three sites is expected to start in May 2012 with a phased commencement of commercial operations between December 2014 and April 2015.
Tihama Power was originally awarded four 20-year Energy Conversion Agreements by Saudi Aramco in 2003 to develop, own and operate four cogeneration plants in the Kingdom of Saudi Arabia. The extension will run to 2026 and will result in a total capacity of 1,063 MW and 2000 tons/hr of steam.
"We are pleased to have advised on this important project toward securing additional sources of reliable power and steam for Saudi Aramco," said White & Case local partner Antoine Cousin. "White & Case was able to bring together a series of lawyers from across our network to successfully support this deal."
The White & Case team was led by Riyadh-based partner Antoine Cousin, supported by partners Steve Payne (Beijing), Michael Turrini (Abu Dhabi), Euan Pinkerton (Riyadh) and Wendell Maddrey (New York) and associates Raymond Azar (New York), Hamad M. Al-Hoshan (Riyadh), Mishari Alabbad (Riyadh) and Yasser Riad (Beijing).
White & Case represented Saudi Aramco on the 2003 cogeneration project and has also advised Saudi Aramco on several similar large scale transactions in recent years, including a joint venture between Saudi Aramco and The Dow Chemical Company completed late last year to build and operate a $20 billion world-scale integrated chemicals complex in Jubail Industrial City, Saudi Arabia.
White & Case has represented Saudi Aramco and its predecessor company, the Arabian American Oil Company, for more than half a century.
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