Aramco-Shell venture postpones new unit

Riyadh : Saudi Aramco and Royal Dutch Shell are postponing their hydrotreating unit that produces ultra-low sulphur diesel from their joint-venture refinery for the third time to March or April, due to teething problems, sources said yesterday.

The new unit, also known as a hydro-desulphuriser, which removes sulphur from diesel, was scheduled to come online before the end of last month, after two planned start-ups at the end of 2009 and in October failed to materialise.

It is expected to produce 90,000 barrels per day of 10ppm (parts per million) sulphur diesel, making it the kingdom's first producer that complies with new environmental standards.

Partnerships likely with Indian firms

Saudi Arabian Oil Co, or Saudi Aramco, could partner Indian state-owned oil refiners to tap retailing and refining opportunities in the country, livemint.com reported on Thursday, citing the Saudi ambassador to India, Faisal H. Trad.

"The technical teams from both sides are working hard to bring this to reality," the website quoted Trad as saying.

The move could mean a joint venture with either a new refinery or a partnership with refineries "that have an outlet to the distribution side," Trad said.

— Dow Jones