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Aramco and Total sign $9.6bn Jubail contracts.

Byline: RIYADH:

Saudi Aramco and France's Total have signed agreements with contractors to build a $9.6 billion joint-venture refinery in the kingdom, state news agency SPA reported.

The two companies awarded the contracts for the 400,000 barrels per day (bpd) refinery last month. Spain's Tecnicas Reunidas and France's Technip won three of the biggest contracts offered.

The contract award was delayed by months as Aramco and Total forced bidders to price in lower commodity and contracting prices in their bids. The final contracts awarded came in some $2.4 billion below the highest estimate for the refinery cost of $12 billion.

Meanwhile Samsung Engineering won contracts for two refinery plants amounting to $1.6 billion from Satorp, a joint venture that includes Saudi Aramco and Total. Samsung Engineering president and CEO Yeon-Joo Jung said the company was awarded two main plants out of the five process packages from the Jubail Export Refinery Complex project.

The Aromatics plant (package 3), at a value of $700 million, will produce 700,000 metric tonnes per annum (mtpa) of paraxylene and 140,000 mtpa of benzene. Samsung Engineering will provide the engineering, procurement and construction of this package on a lump-sum turn key basis, with completion scheduled for August 2012.

Package 4 consists of the delayed coker unit with a contract value of approximately $900 million, which was obtained through a strategic collaboration between Samsung Engineering and Japanese global EPC leader Chiyoda. By June 2013, the unit is expected to produce 100,000 barrels per stream day (bpsd) of light hydrocarbon such as LPG and naphtha through a thermal cracking process of heavy hydrocarbon.

Including this award, Samsung Engineering is currently performing a total of $2 billion worth of projects with Aramco, which allows efficient usage of material, equipment, manpower and project resources.

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Publication:Oil & Gas News
Date:Jul 19, 2009
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