Business | Oil & Gas
Aramco signs contracts with seven firms for Yanbu refinery
Red Sea complex will process Arabian Heavy crude oil
- Zawya Dow Jones
- Published: 00:00 July 29, 2010
- $10b cost of building Yanbu export refinery
- 6,300 tonnes of coke to be processed every day
- 1,200 tonnes of sulphur to be processed a day
Dubai: Saudi Arabian Oil Co (Saudi Aramco) said yesterday it has signed contracts with several local and international contractors to help it build its estimated $10 billion (Dh37 billion) export refinery at Yanbu on the Red Sea.
Aramco, in an emailed statement, said it signed detailed engineering, procurement and construction, or EPC, contracts for the Yanbu export refinery project with companies including Tecnicas Reunidas and Daelim Industrial Co.
Aramco didn't give any value for the contracts.
The newly incorporated Red Sea Refining Co. will be responsible for the execution and operation of the project, Aramco said.
Withdrawal project
In April, ConocoPhillips announced its withdrawal from the Yanbu refinery project, which was originally set to be implemented on a joint-venture basis, in a bid to reduce its exposure in the refining and marketing business.
Aramco will now implement the project without a partner.
The Yanbu refinery will process 400,000 barrels a day of Arabian Heavy crude and produce a daily 90,000 barrels of gasoline, 263,000 barrels of ultra-low sulphur diesel, 6,300 metric tonnes of coke and 1,200 tonnes of sulphur.
Yanbu is located some 350 kilometres north of Jeddah.
Double signing
In yesterday's statement, Aramco said Tecnicas Reunidas signed up for the refinery's coker package, while Daelim signed the contract to install gasoline and hydrocracker units.
Other companies that signed contracts are Saudi Services, South Korea's SK Engineering and Construction Co., Dayim Punj Lloyd, a Saudi/Indian joint venture firm, Saudi Arabia's Rajeh Al Marri and Egypt's Engineering for the Petroleum and Process Industries, or Enppi.
Milestone
"Signing these contracts represents a critical milestone for the Yanbu export refinery project and will pave the way for many other major activities in the Yanbu area," Motassim Al Ma'ashouq, Saudi Aramco executive director of new business development, said in the statement.
Business Editor's choice
-
China breaks West's solar monopoly
Some countries in the world, especially Germany and the United States, have made considerable efforts to invest in developing solar energy cells
-
Burberry store spree will cut profit
Trenchcoat maker forges ahead with investment strategy targeting emerging markets
-
Laws needed to spur region bond markets
UAE Central Bank calls for creation of a centralised Sharia board to facilitate the sale of sukuk
