Aramco, Conoco confirm Yanbu.

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THE Saudi Arabian Oil Company (Saudi Aramco) and ConocoPhillips have 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 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 sulfphur refined products that will meet current and future product specifications. Saudi Aramco and ConocoPhillips would each be responsible for marketing one half of the refineryCOs 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. C[pounds sterling]WeCOre pleased to be entering the next stage of development for the Yanbu export refinery project, together with our partner, ConocoPhillips,C[yen] says Khalid G. Al-Buainain, Saudi Aramco senior vice president for refining, marketing and international. C[pounds sterling]This facility will bolster the kingdomCOs 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 companyCOs expanding downstream business portfolio,C[yen] he adds. C[pounds sterling]ConocoPhillips is pleased to continue working with Saudi Aramco towards adding needed capacity to the international refining system,C[yen] says Jim Gallogly, ConocoPhillips executive vice president of refining, marketing, and transportation. C[pounds sterling]The Yanbu project fits well with the companyCOs 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.C[yen] 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.

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