Total SA chief executive Christophe de Margerie told a French parliamentary hearing the cost of Saudi Arabia's Jubail refinery was around $12 billion.

A previous company forecast had projected a cost of more than $10 billion.

Asked by one legislator to elaborate on the share of profits that Total, the fourth-largest Western oil major, distributed to shareholders against the size of its investment in renewable energies, de Margerie said: 'We've indeed increased our dividend by 11 percent ...Nothing is insignificant, but neither are our investments. I can tell you how much the (Republic of Congo's) Moho Bilondo project that I've just inaugurated cost, it's $4 billion.

'I can tell you how much our lastest project in Angola cost, $7 billion, how much our current refinery investments cost, in Saudi Arabia or elsewhere, $12 billion or more.'    

Asked by reporters to confirm Total estimated the cost of the 400,000 barrels per day Jubail refinery at $12 billion, against a previous forecast for an investment of 'more than $10 billion,' de Margerie said: 'I have said around that sum ($12 billion)... I have no figure. We have already said that the amount would be known only after a bidding process.'    
As industry costs surge, Total's aim is to keep those costs under control, de Margerie said, adding his group did not want to send signals to energy services companies 'saying: go ahead, there is room to raise the cost of your services.'    
The final cost of the project -- in which Total has a 37.5 percent stake, and Saudi Aramco the rest -- should be known towards the end of 2008. The refinery is expected to start producing at the end of 2012. - Reuters