Saudi state utility company Saudi Electricity Company (SEC) and Japanese refiner Showa Shell Sekiyu will build a 500 kilowatt solar power plant in the south of the kingdom, SEC said on Saturday.

The plant will be funded by Showa Shell, SEC's Chief Executive Ali al-Barrak said in the statement.

Showa Shell will own the project for 15 years or less, after which the assets will be transferred to SEC.

No cost was given for the project which will be built on the kingdom's Farazan Island, the statement said.

Showa Shell is owned one-third by Royal Dutch Shell and nearly 15 percent by Saudi Aramco.-Reuters