The Saudis are building four big new refineries to process their heavy crude. The output will come online in 4-5 years...
Saudi Aramco, Total to go ahead with new refinery
sg.news.yahoo.com
Reuters - Thursday, May 15Aramco and Total signed a deal to build the plant in 2006. Aramco also signed a similar deal for another 400,000 bpd refinery with ConocoPhillips , but has yet to announce a final investment decision on that plant. (Reporting by Simon Webb; additional reporting by Marie Maitre in Paris; editing by James Jukwey) - DUBAI, May 14 - State oil giant Saudi Aramco and France's Total have decided to go ahead with plans to build a new 400,000 barrels per day refinery in Saudi Arabia, Aramco and Total said in a joint statement on Wednesday.
The plant is one of four that the world's top oil exporter aims to build to boost domestic refining capacity by as much as 1.6 million bpd from 2.1 million bpd.
The refinery on the Gulf coast at Jubail will start up at the end of 2012, the companies said.
They provided no details as to the cost of the plant.
Equipment and labour shortages have pushed costs up globally in the energy sector, raising industry concerns about whether the new Saudi plants would be built. Industry sources have pegged the cost of the new plant at over $10 billion, up from the initial estimate of around $6 billion.
"We can't give an estimated cost yet as we are going to have to wait for the results of tenders, but it will certaintly be above the initial $6 billion that were announced," a source close to the situation told Reuters.
The refinery will be a complex plant able to convert the increasing quantities of heavy crude Aramco plans to produce in the future into transport fuels.
"Saudi Aramco and Total will contribute to supply growing demand for transportation fuels and petrochemicals, especially in Asia and the Middle East, but also in Europe where the deficit of diesel is growing," Michel Benezit, Total's president of refining and marketing, said in the statement.
Aramco will own 62.5 percent of the plant, and Total 37.5 percent.
Aramco will later offer 25 percent to the Saudi public, leaving both Aramco and Total with an equal 37.5 percent share in the plant.
Aramco and Total will form a joint venture company in the third quarter for the refinery, and will invite companies to bid for the plant's construction in June.
All packages for construction will be awarded in the first quarter of 2009, the companies said.
Finance for the plant should be closed in early 2009.
Aramco and Total signed a deal to build the plant in 2006. Aramco also signed a similar deal for another 400,000 bpd refinery with ConocoPhillips , but has yet to announce a final investment decision on that plant. (Reporting by Simon Webb; additional reporting by Marie Maitre in Paris; editing by James Jukwey)
Saudi Aramco and ConocoPhillips Confirm Yanbu Export Refinery Project
biz.yahoo.com
Friday May 16, 11:00 am ET
DHAHRAN, Saudi Arabia--(BUSINESS WIRE)--The Saudi Arabian Oil Company (Saudi Aramco) and ConocoPhillips (NYSE:COP - News) today announced they have approved continued funding for the development of the Yanbu Export Refinery Project.
The Saudi Aramco and ConocoPhillips project would construct a grassroots, 400,000 barrel-per-day, full-conversion refinery in the Yanbu Industrial City, in The Kingdom of Saudi Arabia. The refinery is being designed to process Arabian heavy crude which would be supplied by Saudi Aramco. The refinery would produce high-quality, ultra-low sulfur refined products that will meet current and future product specifications. Saudi Aramco and ConocoPhillips would each be responsible for marketing one half of the refinery's production. The refinery is targeted to start up in 2013.
The companies have completed the initial evaluation and front end engineering and design (FEED) outlined in the May 2006 Memorandum of Understanding (MOU). The next phase will include the solicitation of bids, commitment of long lead items and site preparation work.
“We’re pleased to be entering the next stage of development for the Yanbu export refinery project, together with our partner, ConocoPhillips,” said Khalid G. Al-Buainain, Saudi Aramco senior vice president for Refining, Marketing & International. “This facility will bolster the Kingdom’s refining capacity, and provide additional quantities of high quality refined products for global and domestic markets. This partnership is important to Saudi Aramco, and this initiative is an important aspect of our company’s expanding downstream business portfolio,” he added.
“ConocoPhillips is pleased to continue working with Saudi Aramco towards adding needed capacity to the international refining system,” said Jim Gallogly, ConocoPhillips executive vice president of refining, marketing, and transportation. “The Yanbu project fits well with the company’s overall strategy to invest in projects that expand our global refining presence and provide significant new supplies of clean products in an environmentally sound manner.”
ConocoPhillips and Saudi Aramco are planning to form a joint-venture company, with equal interests to own and operate the proposed new refinery. Subject to required regulatory approvals, the parties plan to offer an interest in the refinery to the Saudi public.
ConocoPhillips is an integrated international energy company with interests around the world. For more information, go to www.conocophillips.com.
Owned by the Saudi Arabian Government, Saudi Aramco is a fully-integrated, global petroleum enterprise, and a world leader in exploration and producing, refining, distribution, shipping and marketing. The company manages proven reserves of 260 billion barrels of oil, the largest of any company in the world, and manages the fourth-largest gas reserves in the world.
Additional information about Saudi Aramco can be found on the following Web site: www.saudiaramco.com. |
