RIYADH, June 16: Saudi state oil company Aramco said on Saturday it is considering the construction of a new refinery which could start production in 2012.

“The company’s business plan for the next five years comprises a proposed project for the construction of a new refinery at Ras Tanura with a refining capacity reaching 400,000 bpd,” Aramco said in a statement.

“The refinery is expected to start production in 2012,” it added.

The Middle East Economic Digest (MEED) reported this week that the project was launched and could cost up to $8 billion.

In addition, the firm agreed last year with France’s Total and US ConocoPhillips to build two export-oriented refineries of 400,000 bpd each at a total cost of $12.4 billion.

Both those refineries are scheduled to start up before the end of 2011, Aramco has said.

The deals were part of plans by Aramco to spend with partners $50 billion by end-2011 to boost refining capacity at home and abroad.

Saudi Aramco already has a 550,000 bpd oil refinery in Ras Tanura in the east of the kingdom, the world’s largest oil exporter.—Reuters