Gulf newspaper Al Hayat reported that French oil major Total’s USD 12 billion JV with Saudi Aramco could face a delay as the two firms seek to cut costs.

The two firms earlier said in June 2008 that they would award all the packages for the construction of the 400,000 barrels per day Jubail refinery in the first quarter of 2009. But the launch of many oil related projects in the world’s largest oil exporter could be delayed to 2009. Al Hayat cited the global financial crisis, fears over a world economic recession and an expected drop in construction costs as reasons for the potential delays.