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In Brief

Aramco picks banks for $10bn Sabic loan

DUBAI: Saudi Aramco has chosen HSBC and Japan's Sumitomo Mitsui Banking Corporation (SMBC) to coordinate talks with other banks for a loan of about $10 billion the oil giant plans to raise, sources said.

The jumbo financing would help the company back its acquisition of a 70 per cent stake in Saudi Basic Industries Corp (Sabic) from Saudi Arabia's Public Investment Fund, a deal worth almost $70 billion. Aramco did not comment on the banks choice but said it continues to review its financial options "as part of its normal course of business, while prudently preserving its pristine balance sheet and its resilience."

Adnoc ends $1.65bn Dalma gas contracts

ABU DHABI: Petrofac has said Abu Dhabi National Oil Company has terminated $1.65-billion worth of contracts it had awarded to its Emirati unit for the Dalma gas development project in the emitrate.

The Dalma Gas Development Project, which was awarded in February, comprised two packages. Petrofac Emirates’ portion of the scope of work is valued at $1.5billion.

Meanwhile, Petrofac said it was committed to working with Adnoc over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.

Petrofac continues to progress execution of its remaining group backlog of around $7 billion as planned and is still progressing with tendering for major contracts in Abu Dhabi. However, it anticipates this development may have an impact on the timing of their awards.