当初のNatural Gas Initiative Natural Gas Initiative
Gas Development: Saudi Aramco's Role
Gas Operations Latest
The Hawiyah Gas Plant, which
became fully operational at the end of 2001, provides an
additional 1.4 billion cubic feet per day of sales gas.
The Haradh Gas Plant construction progresses on schedule to meet
planned commissioning and start-up at year-end 2003. This new gas
plant will provide an additional 1.5 billion cubic feet per day
of sales gas.
To meet growing domestic demand, the Kingdom has embarked on a
major expansion of its gas industry and the downstream consuming
sectors of the economy, particularly petrochemical production and
exports and electricity and water desalination facilities.
Subsequent to the Long Term Kingdom Gas Strategy developed by the
Ministry of Petroleum and Minerals and Saudi Aramco in 1998, the
government invited interested international oil companies (IOCs)
to participate in the development of new gas fields, gas
production and downstream utilization projects. Gas is targeted
to be "an engine of growth" for the Saudi economy.
The so-called Natural
Gas Initiative has made
substantial progress and has an ambitious schedule ahead to
implement some $25 billion worth of projects over the next five
to ten years. Progress is being made on three Core
Core Venture 1 includes ethane and NGL recovery from the
Hawiyah Gas Plants,
additional new gas development and production, two petrochemical
complexes to utilize ethane and NGL and two large power/water
generation facilities on the east coast of Saudi Arabia. The IOC
consortium selected to develop CV1 includes ExxonMobil, Royal
Dutch/Shell, BP and Philips.
Core Venture 2 focuses on gas development in the Red Sea and along the west
coast. It includes
exploration, development, production and downstream facilities,
i.e., petrochemical and power/water plants. ExxonMobil,
Occidental and Marathon are in a consortium to develop CV2.
Core Venture 3 comprises gas exploration and production in the Shaybah/Kidan area in the southeastern part of the Kingdom.
It will include downstream facilities, as well. A consortium of
Shell, TotalFinaElf and Conoco is working to develop CV3.
Speaking recently of these mammoth gas projects, Ali I. Al-Naimi,
the Minister of Petroleum and Mineral Resources, said, "We
want to see strategic partnerships between foreign and Saudi
investors and the state to achieve our goals of economic
prosperity." Such partnerships should "build
comprehensive industries, starting with gas exploration and
extraction ... and ending with vital projects including power
generation, water desalination and petrochemicals," he said.
"No doubt, the challenges are immense and diverse, the
biggest of all being the sustained economic development at a rate
that exceeds that of population growth and establishment of a
sturdy industrial base capable of competition at the
The three CVs cover an area of 440,000 square kilometers, making
it the world’s largest area
for hydrocarbon investment. Reviewing the Kingdom’s natural gas industry, the minister
referred to the present and future role of gas and highlighted
the historical development of this industry in the Kingdom. The
development, he said, had passed through four main phases and was
now in its fifth phase. The first phase started with oil
production in 1938 and lasted through 1975. The fifth phase was
launched when the Kingdom invited foreign investment in gas
exploration, production and processing, as well as linking these
initial upstream resources with downstream processes.
IEEJ：2003 年4 月掲載
Gulf News 2003/7/6
New Saudi gas initiatives need to be attractive
Saudi Arabia's original Natural
Gas Initiative (NGI) had been all but totally terminated due to differences between international
oil companies (IOCs) and the government. The authorities
to make a new revised offer
during a meeting in London later this month.
The integrated programme stipulated exploration and processing of gas plus
construction of power stations, water desalination plants and
petrochemical schemes. The
gas sector was excluded from a negative list that specifies
activities prohibiting foreign investments.
From the onset, the NGI looked complicated in many respects.
Despite several rounds of negotiations, the two sides could not
agree on a course of action leading to implementation agreements. At the core of the
disagreement was the internal rate of return (IRR).
Other restrictions made the gas ventures even less attractive.
For example, the offer was valid only for areas of non-associated
Additionally, areas with proven gas reserves were off limits.
Also, the two sides disagreed on the interpretation of the
seismic surveys. Saudi Aramco, which represented the government,
had estimated the three areas to contain 35 trillion cubic feet
In January and as part of moves to avoid collapse of the entire
government terminated the second core venture, considered the
most difficult to explore.
But in early June, the first core venture, the most prized
was terminated. Thus, progress on the third core
venture, regarded as the easiest of all, remained valid.
Aramco,Shell,Totalが South rub Al
Kingdom's Gas Development: Saudi
Abd Allah S. Al-Saif
Sr. Vice President, Exploration & Producing, Saudi Aramco
Dammam, May 22, 2004
http://www.saudiaramco.com/ 当初のNatural Gas Initiative
Good morning, gentlemen.
It is my pleasure to participate in this important Gas Conference
and to be able to speak to you about Saudi Aramco’s role in the development of the Kingdom’s gas program and our commitment to meet
future growth in gas demand that will maximize the Kingdom
Let me begin with a brief history of the Saudi Gas Program
At the direction of the Saudi
Government, Saudi Aramco launched the Master Gas System or MGS in
late 1970s, to put to use associated gas to develop gas-based
industry in the Kingdom.
The processed gas was the main driver for developing the Jubail
and Yanbu industrial cities. The Gas development focuses on the
domestic use which yields great benefits to the Kingdom.
This slide shows the main
components of the MGS in the early eighties:
It consisted of :
Three gas plants at Berri,
Shedgum, and Uthmaniyah,
Two fractionation centers
at Juaymah and Yanbu,
Yanbu industrial city.
After the start-up of the MGS,
the demand for gas grew rapidly.
In the 1980s, when Saudi Arabia’s oil production was low, associated gas
production was not sufficient to feed the industries as well as
provide fuel for utilities.
In order to meet commitments to customers, Saudi Aramco
introduced non-associated gas and modified the gas plants to
treat both types of gas.
Simultaneously, an aggressive
exploration program started in 1994 and began to add an average
of 5 TCF per year to the non-associated gas reserves. By the end
of 2003, these reserves stood at almost 97 Trillion Cubic feet .
Armco's efforts in Exploration, Delineation and Development
to target the addition of 5 TCF per year.
Based on these reserves, and the increasing demand for gas and
gas products, Saudi Aramco built two world class gas processing
plants, at Hawiyah and Haradh, which process non-associated gas
This is in addition to major expansions in Shedgum and Uthmaniyah
As shown on this slide, Saudi
Aramco has made a number of large investments in facilities which
helped meet the growing demand. As of today, our gas plants can
process in excess of 9 Billion Standard Cubic Feet per day, and
produce 7 billion Standard Cubic of sales gas which is then
distributed to Kingdom industries and utilities.
As you can see, the gas availability has always been either equal
to or higher than demand. Utilities are a major consumer of Gas
However, its consumption fluctuates heavily between the summer
and winter season as shown by the yellow line. This results in
unutilized gas avails in winter. The Ministry, Saudi Aramco and
the Utilities are working together to develop a base load plan
that would allow availing the swing volumes to the industries
throughout the year.
This slide shows the MGS as it
stands today including the two new gas plants and the sales gas
supply to Riyadh and Yanbu.
Today the Kingdom ranks among the highest in per capita gas
consumption and value addition. Saudi Arabia is a leading
exporter of gas-derived petrochemicals and remains the world’s largest exporter of NGL.
In addition to being used as feedstock, gas fuels much of the
Kingdom’s electricity and
water desalination facilities.
With the guidance of the
Government, a gas strategy was developed to ensure continuity of
supply to meet kingdom needs well into the future. This strategy
assumes that gas demand will reach 12 BCFD by 2025.
The next wave of growth will come from two sources.
First, from additional investments within Saudi Aramco. The
Company has allocated major capital investments to install
facilities to recover ethane and NGL from Hawiyah and Haradh gas
plants. The recovery project is due to start in 2008 and most of
the products from this project have already been committed to
Saudi Aramco will continue to expand gas facilities as demand
The Kingdom’s gas strategy also envisioned inviting
foreign companies to participate in the Kingdom’s gas sector. The strategic driver for the
government’s opening of
upstream gas development is to attract foreign investments.
This Strategy culminated with the recent signing by H.E. Ali I.
Al-Naimi, Minister of Petroleum and Mineral Resources of the four
gas agreements with 6 major International Oil Companies which
marked a historic milestone for the Kingdom and Saudi Aramco.
The four exploration/development
gas agreements covering the Rub’al-Khali basin include Shell, Total,
Lukoil, Sinopec, ENI and Repsol along with Saudi Aramco as indicated on
You have already heard from each of these companies and I will
not discuss the specific plans of each joint venture.
Rub al-Khali : map
In the south of the Kingdom is the famous Rub al-Khali (the
Empty Quarter), a massive, trackless expanse of shifting sand
dunes - one of the largest sand deserts in the world - which
covers an area of more than 250,000 square miles (650,000
square kilometers) and extends to 1,200 by 500 kilometers.
Saudi Aramco will play an active
part in the entire business of these joint ventures ーfrom operation, technology exchange and
application to day-to-day management and representation to the
Board of each of these four joint ventures.
Saudi Aramco has loaned some of the Company's best talent to
these ventures to exchange ideas, knowledge and the unique
insight gained from years of working on Saudi gas geology,
reservoirs and appropriate technologies.
The Company is also counting on exchanging fresh insight from the
skills, know-how and the talent that the partner companies will
bring to the venture.
Saudi Aramco will provide logistical support as needed and only
when it can't be found locally.
The comprehensive agreements between the IOC's and the Government
of Saudi Arabia that were recently signed addressed in details
the commitment to Saudization, Environmental protection and the
utilization of local Infrastructure and services.
addition, Saudi Aramco will assume other broader
operation of the Master Gas System,
||The role of
Gas aggregator, i.e., buying gas from the joint ventures,
consolidating with own supply, transportation and
distribution of gas to customers
Ensuring that the gas from the JVs is lifted and
delivered to customers by appropriately planning,
investing in and building facility expansion and pipeline
infrastructure in a timely manner.
In other words, Saudi Armco's
stewardship role for Saudi gas will continue, with added scope
and greater responsibilities. And yet the fundamental purpose of
the stewardship remains the same as it was when we started this
journey three decades ago: To create the maximum value and to
provide the greatest benefits to the Kingdom and its people from
Saudi gas resources.
The master Gas system has served as the cornerstone of the
over the past 3 decades.
Saudi Aramco will continue the expansion of the Master Gas System
to meet future demand..
We are most certain that the joint ventures will complement Saudi
Aramco effort toward satisfying this demand.
Saudi Aramco is committed to make these JV’s a success with participation in their
governance and Management. Saudi Aramco loanees to these
companies will actively participate in technical exchanges,
operations and management of these companies.
These agreements and the massive foreign investment they will
bringprovide another chapter in Saudi Armco's effort to leverage
the Kingdom’s abundant
hydrocarbon reserves for the Kingdom’s economic well being and those of our
Shell, Total strike Saudi gas
Dutch/Shell Group of Companies and Total signed an agreement with the Government
of the Kingdom of Saudi Arabia, to form a Joint Venture with
Saudi Aramco for the exploration of gas in an area of 200,000 km2
in the southern part of the Rub Al-Khali (the Empty Quarter).
Shell, as leader of the Consortium, will retain a participation
of 40 per cent of the new Joint Venture, with Saudi Aramco and
Total each 30 per cent participation.
Shell and Saudi Aramco join Total in
the South rub Al Khali Company
"Saudi Aramco is truly proud
of its relationship with shell, and that cuts across the whole
business," says Khalid Al-Falih, Vice President of New
Business Development at Saudi Aramco Chairman of the new South Rub Al Khali Company
(Natural Gas ) Initiative was to span both upstream and
Unfortunately, it became clear
Core Ventures as originally conceived were too commercially and
technically complex, and that it would not be feasible to
implement their downstream elements," he says.
"The result was that, in
consultation with the IOC consortium led by Shell, the Saudi Government
restructured Core Venture 3 to focus on the upstream," he continues. "This resulted
in the signing last year of a contracted for the exploration and
development of 210,000 square kilometers of the Rub Al Khali
desert and the
formation of the South Rub Al-Khali joint venture."
The South Rub Al Khali
Company Limited (SRAK) was formed in December 2003 with three shareholders: Shell with
40 per cent and Saudi Aramco and Total, each with a 30 per
Foreign firms move into Saudi
In a milestone agreement, Saudi
Arabian officials signed contracts with foreign oil executives on
Sunday to explore jointly for natural gas in the country's vast
southern desert known as the Rub al-Khali, or Empty Quarter.
Saudi Aramco, the
state-run oil concern, took a 20% share in each of the three contracts awarded.
Its partners are Lukoil Holdings of Russia; China Petroleum
& Chemical Corp., or Sinopec; and a consortium comprising
Italy's Eni SpA and Repsol-YPF of Spain.
May 18, 2001 Exxon Mobil
ExxonMobil Selected as Leader in Saudi Gas Venture
Exxon Mobil Corporation announced
today that the Kingdom of Saudi Arabia has selected ExxonMobil as
the leader in a significant project, Core Venture 2 in the Saudi
Arabian Natural Gas Initiative, and that ExxonMobil has also been
selected to participate in the implementation of another major
project, Core Venture 1.
The two projects, known as Core Ventures 1 (Northern Rub' al Khali) and 2 (Red Sea) could result in a total estimated
industry investment of over US$20 billion and are designed to
underpin the Kingdom's goals of economic growth and job creation
by developing and providing energy to diverse industries.
will become the lead, majority participant in Core Venture 2 and a significant participant in Core Venture 1. Following the signing of Preparatory
Agreements, ExxonMobil will work with the Saudi Government and
other participants to define and evaluate each Core Venture
element, and develop project execution plans.
1 will significantly expand
the Kingdom of Saudi Arabia's power, water desalination,
petrochemical and gas system and provide for exploration and
development of the Kingdom's gas resources in the Northern Rub'
Al-Khali region. The project includes field production and
gathering facilities, gas processing and fractionation plants to
recover and separate liquids from existing and new gas
production, gas and liquids transmission and downstream
investment in power, petrochemicals and water desalination. The
project includes up to 4000 MW new power generation capacity
integrated with water desalination, and two new petrochemical
facilities, one each on the east and west coasts of Saudi Arabia.
2 includes development of
discovered gas resources in Northwest Saudi Arabia, power and
desalination facilities in that region and exploration in the
Northern Red Sea with the opportunity for additional investment
in chemicals, power and desalination facilities on the West Coast
depending on exploration success.
Saudi Aramco and Total confirm Jubail Refinery Project
The Saudi Arabian Oil Company (Saudi Aramco) and Total have both
confirmed their decision to invest in a 400,000 barrel per
world-class, full-conversion refinery in Jubail, Saudi Arabia.
In a comprehensive, joint Front-End Engineering and Design (FEED)
study launched in May 2006, Saudi Aramco and Total have selected
state- of- the- art proven technologies for a full conversion
refinery scheme geared to maximizing the production of diesel and
jet fuels. In addition, the project will produce 700,000 tonnes per
year (t/y) of paraxylene, 140,000 t/y of benzene and 200,000 t/y
of polymer grade propylene.
A joint venture company for the refinery will be formed during
the third quarter of 2008. Saudi Aramco will initially own
62.5% of the company and Total will own the remaining 37.5%. Subject to required regulatory
approvals, the parties are planning to offer 25% of the
company to the Saudi public while the two founding shareholders
each intend to retain a 37.5% ownership interest. Saudi Aramco
and Total will share the marketing of the refinery’s production.
May 16, 2008 Saudi
Saudi Aramco and
ConocoPhillips Confirm Yanbu Export Refinery Project
The Saudi Arabian Oil Company (Saudi Aramco) and ConocoPhillips
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
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
May 25, 2008
Saudi Aramco eyes $129 bln investment in next 5 yrs
State oil giant Saudi Aramco plans to invest $129 billion on
new energy projects in the next five years, the company's executive vice
president of operations said on Sunday.
of the total would be spent by international and domestic joint
ventures, and the remaining $59 billion on projects solely undertaken by
Aramco, Khalid al-Falih told Reuters.
The $129 billion figure is nearly $40 billion higher that
previous estimates given by Saudi official for expansion.
"We are updating our figures all of the time. This figure
includes more projects," Falih said. This includes refinery projects
in the United States and China, a second phase of
the Saudi-based PetroRabigh 2380.SE, and a giant petrochemical
plant at Ras Tanura to be built by Dow
Accord Inked with SABIC for Marketing Polyolefin Products of
Fujian Joint Venture
Sino Saudi Aramco Company Ltd, a wholly owned subsidiary of Saudi
Aramco, signed a mutual cooperation agreement with SABIC Shenzhen
Trading Company Ltd, a SABIC subsidiary in the People’s Republic of China.
The agreement was signed on the afternoon of Saturday, July 12,
2008, at the offices of the parent company, Saudi Aramco, in
Under this agreement, SABIC Shenzhen Trading Company Ltd will
market Saudi Aramco Sino Company Ltd’s 25 percent share of polyolefin
products produced by the Fujian Refining and Petrochemicals
the People’s Republic of China.
This agreement is
regarded as one of the significant pillars in the progress of the strategic
partnership between SABIC and Saudi Aramco, and the agreement is expected to
boost and support the strong leading position of SABIC in the
field of production and marketing of polyolefins, worldwide.
The project’s products will include such
polyolefins as Liner low density polyethylene
(LLDPE), at a production capability of 400,000 tons annually,
high density polyethylene (HDPE), at a production capacity of
400,000 tons annually. The project will also produce
polypropylene (PP), at a production capacity of 470,000 tons
The Saudi Arabian Government owns 70 percent of SABIC shares with
the remaining 30 percent held by private investors in Saudi
Arabia and other Gulf Cooperation Council countries.
Aramco and ConocoPhillips Delay Yanbu Project
Arabian Oil Company (Saudi Aramco) and ConocoPhillips have agreed
to halt the bidding process associated with the construction of
the planned 400,000 barrel-per-day export refinery at the Yanbu
Industrial City, in the Kingdom of Saudi Arabia, citing
uncertainties in the financial and contracting markets. The
current bidding process requested bids to be submitted during
December 2008. Instead, it is planned that the project will be
re-bid in the second quarter of 2009.
remains committed to working with Saudi Aramco to complete the
Yanbu Export Refinery Project," said Jim Mulva, chairman and
chief executive officer, ConocoPhillips. "We believe that
this short delay will allow the markets to adjust from the
current uncertainties and provide a stronger basis for the
long-term success of the refinery.”
original schedule for the Yanbu Export Refinery Project will
change, Saudi Aramco remains strongly committed to completing
this important project with ConocoPhillips," said Abdallah
S. Jum’ah, Saudi Aramco president and
chief executive officer. "We believe that a delay at this
time will allow both the contracting and financial markets to
better accommodate the project and will prove to be advantageous
for the project company.”
The companies will
maintain joint engineering, start-up planning and other
preparatory activities to ensure project continuity while
accommodating the delay.
June 16, 2009
Saudi Aramco and Total
Award EPC Contracts for Jubail Export Refinery
Aramco Total Refining and Petrochemical Company (SATORP) finalized the awarding
plan for Engineering, Procurement and
Construction (EPC) contracts that constitute
different process packages of their Jubail joint
following a meeting of the SATORP Board of Directors. The
awarding of these contracts marks an important step in the
execution of this 400,000 barrel per day world-class, full-conversion
refinery in Jubail, Saudi Arabia, which plans to be fully
operational by the second half of 2013.
refinery will maximize production of diesel and jet fuels, and
will also produce 700,000 tons per year (t/y) of
paraxylene, 140,000 t/y of benzene and 200,000 t/y of
On May 6 and May 8, 2008,
respectively, the Executive Committee of Total and the Board of
Directors of Saudi Aramco decided to launch the project, and on
June 22, 2008, a ‘Shareholder Agreement’
was signed in
Jiddah, Saudi Arabia, by Saudi Aramco and Total S.A.
Following the signing of
the agreement, SATORP was formed during the third quarter of
2008, and the project remains on schedule. Saudi Aramco and Total
own 37.5 percent of the company each. Subject to required regulatory
approvals, Saudi Aramco plans to offer 25 percent of the company
to the Saudi public in an Initial Public Offer (IPO) during the
last quarter of 2010.
AUGUST 31, 2009 WSJ
Saudi Aramco, Dow Petrochem Complex To Produce 8M T/Yr Of
State-run Saudi Arabian Oil Co., or Saudi Aramco, said Monday its
planned giant petrochemical project with U.S.-based Dow Chemical
Co. (DOW), will produce 8 million tons of products per year.
The petrochemical project, known as Ras Tanura Integrated
Refining and Petrochemicals, or RTIP, has an estimated cost of
over $20 billion. It's expected to be one of the world's largest
chemical and plastics sites and could become fully operational in
2015, Saudi Aramco said in a statement posted on its Web site.
"It is a highly integrated complex. It consists of 35
process units, each of which could be considered a major project,
and will produce on the order of 8 million metric tons of
products annually," Adil al-Tubayyeb, vice president of
RTIP, said in a statement.
The complex will produce ethylene and polyethylene plastic;
chlorine and caustic soda, known collectively as chlor-alkali;
propylene oxide and propylene glycol; vinyl chloride; epoxy
resins; polyurethanes; polycarbonate, and other basic chemicals
Saudi Aramco said the project, which is still in the engineering
and design phase, isn't yet a joint-venture.
"We are a team working to establish a joint venture...we're
not going to be Saudi Aramco or Dow Chemical; we're going to do
this the RTIP way," al-Tubayyeb said.
An investment decision on whether the project should proceed is
expected to be made next year.
finalise gas plant project
Saudi Arabia will shortly finalise plans to build the largest
ever gas plant in the kingdom to supply utilities and some
industries, Saudi Aramco's chief executive, Khalid al-Falih said
The new gas plant is expected to process more than 1.8 billion cubic
feet per day (cfd) of gas, Falih told Reuters during an
interview on the sidelines of a petrochemical plant inauguration.
has said the kingdom plans to bring online in 2013
its 900,000 barrels per day Moneefa project, Reuters
has reported. After delaying the project this year,
no further delays were envisaged for now, Aramco's VP
of Northern Area Oil Operations Fahad al-Moosa said.
plant (Wasit) will be the biggest gas plant we have ever built
... and this will go a long way to meet rising demand for
utilities and some industries," Falih said.
"It will process all offshore non associated dry gas and
this will go a long way to meet rising demand for utilities and
gas development programme at Moneefa is split into several projects
that include building gas processing facilities, two offshore gas
platforms, one tie-in platform, subsea power and communication
links and pipelines.
Canada's SNC-Lavalin said in September that it would provide
engineering and design work and project management services for
Saudi Arabia is short of gas to meet demand from power plants and
industry. Energy consumption has risen in the world's top oil
exporter in recent years as record oil export revenues fuelled an
Saudi Arabia is experiencing annual gas demand growth of 7
Supplies from this gas plant will not be used as
for the growing petrochemical sector in the kingdom.
"It will not have any NGL (natural gas liquids) ... it will
not address any petrochemical production needed for
olefins," Falih said.
Saudi oil minister Ali al-Naimi said in a speech at the inauguration of the $10.3
billion Rabigh Refining and Petrochemical (PetroRabigh) complex that the world's top oil exporter
was looking to build more petrochemical facilitites which relied
on liquid hydrocarbons for feedstock.
Aramco expects to see gas production from the Karan gas field
come onshore in 2011, Falih said. Drilling at Karan began last
The state oil firm is also planning to start drilling in deeper
offshore frontiers in 2012, Falih said.
"These are new frontiers offshore Saudi Arabia. We hope to
find some gas in the subsalt geology there," he said.
"This is a new technical challenge the company is prepared
to take on and we are optimistic."
April 19, 2010 U.S.-Saudi Arabian Business
Saudi Aramco Changes Plans for Ras Tanura Project
Saudi Aramco has decided to move its biggest-ever project, a $17
billion-plus (SR63.75 billion-plus) petrochemicals project with
the U.S.’s Dow Chemicals, from Ras Tanura to
location change will allow cost savings of up to 40 per cent, as the Royal Commission for
Jubail and Yanbu will provide the basic infrastructure needed for
the project, including utilities such as power and water.
This move will also see the company cancel an $8
billion (SR30 billion) refinery development in Ras Tanura and make major changes to schemes
worth an additional $17 billion (SR63.75 billion). In addition,
Aramco and Dow are planning to change the scope of their
petrochemicals complex as a result of the move. The facility will
now be fed entirely by ethane gas rather than a mix of gas and
the petroleum product naphtha as was originally planned. The
ethane will be provided by Saudi Aramco Total Refining and
Petrochemicals Company (Satorp) in Jubail, for which construction
contracts were awarded in 2009. Upon completion, the original
Aramco/Dow complex at Ras Tanura was projected to produce 8
million tons per year of petrochemicals and gasoline products.
Feed studies for the reworked complex are due for completion by
the end of the year, and engineering, procurement and
construction (EPC) contracts could be tendered in 2011. The
volume of output from the plant is not expected to be altered,
yet the diversity of the scope of products will be decreased.
April 1 (Reuters)
State oil giant Saudi
Aramco and U.S. firm Dow Chemical have decided to relocate their
planned giant petrochemical complex to Jubail, industry sources
said on Thursday.
The $20-billion-plus plant was initially to be located in Ras
Tanura, home to the world's biggest offshore oil facility.
But the cost of reclaiming the land at Ras Tanura and congestion
at the site led Dow and Aramco to reconsider plans, sources said
Dow's investment in Ras Tanura would have been the largest single
foreign investment ever in the energy sector of the world's top
oil exporter and the plant would be one of the largest
petrochemical facilities in the world.
"They instructed us that the complex will move to
Jubail," a source told Reuters.
But with the move, the complex -- originally due to produce 8
million tonnes per year of petrochemicals from 35 process units
-- will be downsized, two sources said.
"The capacity will be lower, they are doing that to save
costs," the source said.
Aramco has a $10.1 billion petrochemical complex with Japan's
Sumitomo Chemical in Rabigh on the west coast. Rabigh Refining
and Petrochemical Co (PetroRabigh) 2380.SE can produce an annual
18 million tonnes of refined products and 2.4 million tonnes of
"The complex would probably be as big as PetroRabigh,"
"At least five plants have been cancelled," a second
"All I can tell you is the project continues to progress
through the initial development phases," a Dow spokesperson
reiterated. "The evaluation phase of the project is on
schedule and will be completed later this year."
Aramco's spokesperson could not immediately comment.
In Jubail, a major hub for petrochemicals, Aramco already has a
305,000 bpd refinery with Royal Dutch Shell and is building with
France's Total another 400,000 bpd refinery.
The complex was to be integrated with the 400,000 barrel-per-day
(bpd) expansion of the Ras Tanura refinery, already the largest
plant in the Middle East with capacity of 550,000 bpd. The
Ju'aymah gas processing plant would also have fed into the
But Aramco may shelve for years plans to expand the refinery,
industry sources said last week.
Contractor WorleyParsons, which holds the contract for both
front-end engineering and design and project management, has
taken staff off the project and halted work.
"With the move to Jubail, doubling of capacity at Ras Tanura
refinery would no longer be needed," the first source said.
With the relocation, feedstock is expected to come from
Aramco-Total refinery and from the Berri field, the second source
The front-end engineering and design (FEED) of the complex is
split between U.S. firm KBR Inc (KBR.N), Foster Wheeler and
Jacobs Engineering Group Inc (JEC.N).
KBR is conducting the main portion of the FEED. Relocating the
plant also means the FEED work would have to be revised to match
the possible modifications at the plant, sources said.
(Additional reporting by Ernest Scheyder in New York; editing by
March 16, 2011 Saudi
MOU Signed for Red Sea
Saudi Aramco and China Petrochemical Corporation (Sinopec) signed
a Memorandum of Understanding (MOU) related to the ongoing
development of the Red Sea Refining Company (RSRC), a
world-class, full-conversion refinery in Yanbu’, on the west coast of Saudi
Arabia. The MOU was signed by Khalid A. Al-Falih, President and
CEO, Saudi Aramco, and Su Shulin, President, Sinopec.
Saudi Aramco and Sinopec have agreed to initially subscribe to
equity interests of 62.5% (Saudi Aramco) and 37.5% (Sinopec) in
RSRC should they proceed to formally participate in a joint
venture. Both companies bring commercial and technical knowledge
and expertise to the joint venture while creating a strategic
partnership to enhance trade of transportation fuels between a
significant energy producer and a significant consumer.
In-Kingdom refinery projects such as the RSRC joint venture in
Yanbu’ have the location advantage to
effectively and efficiently supply both international and
Development of this particular relationship with Sinopec in RSRC
is a continuation of Saudi Aramco’s long-term strategy of making
world-scale downstream investments following a massive upstream
program that increased the Company’s crude oil production capacity to
12 million barrels per day.
RSRC is one of a number of downstream projects where Saudi Aramco
is demonstrating its commitment to meet future worldwide energy
The joint venture will also continue a partnership tradition
between Saudi Aramco and Sinopec across the hydrocarbon value
chain in Saudi Arabia and in China. Sinopec is Saudi Aramco’s partner (with ExxonMobil) in the
Fujian Refining and Petrochemical Company Limited in Fujian
Province, as well as in Sino Saudi Gas Ltd., one of the
in-Kingdom gas exploration companies. Sinopec is also among Saudi
Aramco’s largest crude oil lifters.
Refining & Petrochemical Company Limited
China Petroleum and Petrochemical Company Limited 25%
Saudi Aramco Sino Company
中国側 50% Fujian
Petrochemical Company Limited
（Sinopec 50/Fujian Government 50）
Saudi Aramco is
working with Chinese oil and petrochemical company Sinopec to
find and develop gas reservoirs as part of the Kingdom of
Saudi Arabia's Upstream Gas Offering. The exploration
activities are taking place in Contract Area B, an
approximately 40,000-square-kilometer area in the Kingdom's
Rub' al-Khali Basin.
To explore Contract Area B, Sinopec and Saudi Aramco have
formed an exploration and producing company, Sino Saudi Gas
Limited, with Sinopec holding 80 percent of the company and
Saudi Aramco 20 percent.
Sinopec is a vertically integrated energy and chemical
company. It is China's largest producer and marketer of oil
products (both wholesale and retail of gasoline, diesel, jet
fuel), and No.1 supplier of major petrochemical products
(intermediates, synthetic resin, synthetic fiber, synthetic
rubber, fertilizer), as well as the 2nd largest crude oil
agreement further strengthens our mutually beneficial partnership
with Sinopec, and in addition it demonstrates our commitment and
capability to add value to our expanding downstream business
through a world-class partner, with a solid network of marketing
and distribution capability needed to support the Red Sea
Refining Company,” said Khalid A. Al-Falih, President
and CEO, Saudi Aramco.
and Saudi Aramco have developed a strong and long-term
relationship, and have built concrete cooperation in refining,
petroleum trading, and engineering services. The Red Sea Refining
Company will open a new chapter in which Sinopec consolidates the
complementary strategic partnership with Saudi Aramco through the
downstream investment in Saudi Arabia. The project is a further
step by Sinopec to expand its international operation by
developing its overseas refining and petrochemical business, and
to sharpen its competitive edge. It will also help Sinopec gain
access to more energy sources and secure China’s energy supply”
said Su Shulin,
About the RSRC Project
The RSRC project provides an excellent opportunity to attract
foreign investment to expand Saudi Arabia’s economy. Additionally, this
project will serve as a platform for increased industrial
development to expand the domestic economy and provide more job
opportunities for Saudi nationals and further downstream
investments by local businessmen.
It is estimated the refinery will create some 1,200 direct
employment opportunities in the Kingdom. It is also expected to
create some 5,000 additional indirect jobs through industrial
development. Contractors carrying out EPC work will hire and
train many Saudi engineers and technicians in various technical
and administrative fields during the project execution phase.
About 70 percent of the total project value will be spent in the
Kingdom through detailed engineering executed by local design
offices, material procurement from local manufacturers and
suppliers and utilization of Kingdom construction contractors.
The new refinery will use existing Saudi Aramco facilities to
receive crude oil and export refined products. It will include
refinery process units, utilities and interconnecting piping,
associated feedstock and refined product storage, as well as
offsite facilities necessary to support safe and efficient
The project is a new “grassroots”
refinery at Yanbu’
that covers about
5.2 million square meters. It is scheduled to be operational in
The refinery will process 400,000 barrels a day of Arabian Heavy
crude oil and produce high-quality refined products meeting the
most stringent specifications for domestic and global markets.
The products include 90,000 bpd of gasoline, 263,000 bpd of
ultra-low sulfur diesel, 6,300 metric tons per day (MTD) of
petcoke and 1,200 MTD of sulfur.
About Saudi Aramco
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 the largest proven reserves of
conventional crude oil, 260.1 billion barrels, and the
fourth-largest gas reserves in the world, 275.2 trillion cubic
feet. For more information, please visit www.saudiaramco.com.
About China Petrochemical Corporation (SINOPEC)
SINOPEC is an integrated energy and chemical company with
principal businesses of oil and gas exploration, production,
storage and transportation, refining, production, transportation,
trade, marketing and sales of refined products and
petrochemicals. SINOPEC is China’s largest producer and supplier of
refined products and petrochemicals, and second largest oil and
gas producer. Globally, SINOPEC is the second largest refiner and
petrol stations owner and operator. It is also the fourth largest
ethylene producer worldwide. SINOPEC is ranked 7th on the 2010
list of Fortune 500 Companies. For more information, please visit
2011/11/20 Financial Express
Saudi Aramco wants to build crude oil refinery in Bangladesh
Oil-rich Saudi Arabian Oil Company -- Saudi Aramco, has shown interest in
building a crude oil refinery plant in Bangladesh at a cost of around US$ 2.5
billion, a top government official said Saturday.
He said the Saudi firm has placed a proposal to the Economic Relations Division
(ERD) to build the refinery at a suitable location.
Capacity of the planned refinery will be 7.0-8.0 million
tonnes per year, five times larger than the local crude oil refinery,
said the official.
The state-owned Eastern Refinery Ltd (ERL) can refine only 1.4 million tonnes of
crude oil per year.
Saudi Aramco is interested to provide a portion of the refined petroleum in
local market and the remaining for export to overseas
countries, said the official.
The ERD has recently informed the energy ministry of the Saudi firm's intention
to build a refinery in the country.
Saudi Aramco has sought Bangladesh government's opinion over its planned
investment proposal as early as possible.
"We have received the Saudi Aramco's proposal recently over building an oil
refinery plant at its own cost," a senior energy ministry official said.
He said the ministry is now scrutinising the Saudi proposal and will inform its
Saudi Aramco is a regular crude oil supplier of state-owned Bangladesh Petroleum
Corporation's (BPC) subsidiary Eastern Refinery Ltd.
It has already imported around 518,000 tonnes of crude oil from Aramco until
Apart from Saudi Aramco BPC is also importing crude oil from UAE's ADNOC.
BPC has imported 382,000 tonnes of crude oil from ADNOC to refine in ERL until
September, 2011and planned to import 700,000 mts of Arab Light crude from Aramco
BPC will require importing 1.4 million tonnes of crude oil in 2012, up by 12 per
cent from 2011 imports of 1.25 million tonnes.
BPC, which typically imports 1.4 million mts/ of crude oil per year from the two
Middle East producers, is only importing 1.25 million mts of crude this year due
to a 45-day scheduled maintenance.
BPC has projected that it will require to import around 6.50 million tonnes of
refined petroleum products in fiscal year 2011-12 (July-June), up by 27.45 per
cent from previous fiscal year's (2010-11) 5.10 million tonnes.
The state-owned corporation will require around taka 460 billion (US$ 6.21
billion) to import petroleum products in 2011-12, up by 53 per cent from the
previous fiscal year's taka 300 billion, BPC has projected.
BPC imported around 3.8 million petroleum products in 2009-10 fiscal year.
Country's petroleum import is growing rapidly as the country's oil demand is
mounting as the government is diversifying its fuel sources for electricity
generation by setting up dozens of diesel and furnace oil-fired power plants to
cut the country's over dependence on natural gas for electricity generation.
Petroleum demand in the country's industrial and transport sector is also
increasing coping with the country's sustained overall GDP growth of around 6.0
per cent, which the country is maintaining in the past one decade.
BPC is now in acute fund crunch to import increased quantity of petroleum
products to meet the local demand.
BPC has been seeking additional funds from the International Islamic Trade
Finance Corporation, the lending arm of Islamic Development Bank Group, to pay
mounting import bills.
It has also arranged a deferred payment scheme for its refined oil product
purchases from Petronas and PNOC.
Officials said country's import costs may reduce substantially if it meets
demand of mounting petroleum products from the planned refinery of Saudi Aramco.
BPC may have also a stake into Aramco's planned refinery plant, if it builds the
BPC currently has oil import deals with Kuwait Petroleum Corporation, Malaysian
state-owned Petronas unit Petco, Philippine National Oil Company (PNOC),
Emirates National Oil Company, Egypt's Middle East Oil Refinery, Maldives
National Oil Company, PetroChina, Indonesia's Bumi Siak Pusako and Vietnam's
2012/2/18 Saudi Aramco
Memorandum of Understanding signed with PT
Saudi Aramco Asia Company Limited (SAAC), a subsidiary of Saudi Aramco, and PT
Pertamina (Persero) signed a Memorandum of Understanding to jointly evaluate the
economic feasibility to build an integrated refining and petrochemical project
in Tuban in East Java, in the Republic of Indonesia.
"This MOU is a significant first step in extending our already strong
relationship with Pertamina, and is also part of Saudi Aramco’s strategy to
enhance its global downstream presence."
The proposed refinery and petrochemicals project will be designed to process
300,000 barrels per day of crude oil, much of which will be supplied by Saudi
Aramco pursuant to a long-term contract, and will produce high-quality refined
petroleum and petrochemicals products to meet rising demand in Indonesia and
elsewhere in southeast Asia.
The project represents an opportunity for Saudi Aramco to partner with Pertamina,
Indonesia’s state oil and gas company, and to capitalize on investment
opportunities in Indonesia’s growing downstream industry. Additionally, it
extends the close cooperation between Saudi Aramco and Pertamina and increases
prospects for industrialization and economic diversification in Indonesia.
“This MOU is a significant first step in extending our already strong
relationship with Pertamina, and is also part of Saudi Aramco’s strategy to
enhance its global downstream presence,” said Dawood M. Dawood, Saudi Aramco’s
Vice President of Marketing, Supply and Joint Venture Coordination. “Saudi
Aramco is committed to making win-win investments with partners for projects
that yield mutual benefits and contribute to economic growth and development.”
“This cooperation in investment with Saudi Aramco is of the highest value for
both Pertamina and the Republic of Indonesia to strengthen the fuel and
petrochemical supply, to satisfy the huge domestic demand now and for the
future,” said M. Afdal Bahaudin, Pertamina’s Director for Investment Planning
and Risk Management. “Pertamina fully supports our partner to make a successful
project that is beneficial to both parties and that further strengthens our
cooperation with Saudi Aramco. The Tuban refinery and petrochemicals project is
part of Pertamina’s plan to improve Indonesia’s energy security.”
Following the signing of the Memorandum of Understanding, a project team will
work on the next phase of the project, which will consist of a joint scoping
study that will include market research, configuration studies and economic
Aramco to explore for oil in Red Sea
Saudi Arabia is beginning an oil exploration push
that it says is expected to turn up 100 billion barrels of
new oil in existing fields in the Kingdom and in unexplored regions
including in the Red Sea.
The effort is also expected to increase the company’s
natural gas production by 40 percent by 2014.
Saudi Aramco executive said Tuesday the company plans to drill its
first deepwater exploratory well in the Red Sea by
“We are optimistic about the potential for significant discoveries,” said Amin
Nasser, Saudi Aramco senior vice president upstream, at the IHS CERA conference
in Houston. “We expect to start drilling in the deepwater by the end of this
Deepwater and shallow water drilling are key components of Saudi Aramco’s
long-term goal of finding at least 100 million barrels of energy resources
within the Saudi Arabian kingdom in the next several decades, Nasser said. The
company is also working on increasing its rate of oil recovery from fields to 70
percent from 50 percent in coming years.
“The program was designed to ensure that we continue to have
ample spare capacity to meet underestimated energy demand,”
he said. Saudi Arabia has 267 billion of so-called proven
reserves, about one-fifth of the world’s total. “Proven reserves” is an
industry term that means oil or gas that has been discovered and could be
produced with today’s technology.
The world consumes about 89 million barrels of oil per day, or 32.5 billion
barrels per year. The industry describes a field as giant if it has 500 million
barrels of oil or more.
He said geological surveys suggest that the oil will be found in “frontier”
areas in the Kingdom, including in the shallow and deep waters of the Red Sea.
Nasser said shallow water drilling has begun already and that deep water
drilling will begin later this year.
“We are very optimistic about the potential for significant discoveries,” he
He also said improved oil extraction techniques will allow the country to
pull 70 percent of the oil from its existing fields,
up from 50 percent.
The natural gas push is being made to handle strong growth in Saudi Arabian
power demand. Nasser said power demand is rising 7 percent a year.
He also said that Saudi Aramco will improve its research and development
capabilities by doubling the number of scientists who work for the company and
opening research centers around the world.
The first new research center will be in Houston, he added, though he did not
say when it would be established.
Oil prices rose above $105 a barrel Wednesday amid expectations that an
improving US economy will eventually boost crude demand. By early afternoon in
Europe, benchmark oil for April delivery was up 40 cents to $105.10 in
electronic trading on the New York Mercantile Exchange. The contract fell $2.02
to settle at $104.70 per barrel in New York Tuesday.
In London, Brent crude was up 78 cents at $122.76 per barrel on the ICE Futures
Crude has jumped from $75 in October because of diplomatic tensions with Iran, a
major oil producer, and as US economic indicators including employment have
slowly improved over the last few months.
Oct. 10, 2012 UPI
Saudi Aramco finds gas in Red Sea
The Saudi oil minister said the state-owned energy company made a natural gas
discovery about 15 miles offshore in the Red Sea.
Saudi Oil Minister Ali al-Naimi said a natural gas field near the port of Dhuba
produced around 10 million cubic feet per day during an initial testing at a
depth of 17,700 feet. A test at a depth of 17,275 feet produced around 5.2
million cubic feet per day, the Saudi Press Agency reports.
The field was discovered by Saudi Aramco.
The country is shifting its energy mix to meet growing domestic demand. In
September, a report from Citigroup predicted that Saudi Arabia may need to start
importing oil by 2030 to meet domestic energy demand. More than 80 percent of
the country's revenue is based on oil.
In terms of natural gas, Saudi Arabia ranks fourth in the world in proven
Contractors selected for the Jazan Project
Saudi Aramco has completed the contractor
selection process for the engineering, procurement and construction (EPC) phases
of the Jazan Refinery and Terminal, in the southwest part of the Kingdom of
After completion of front-end engineering design (FEED) work in April 2012,
competitive bidding for the EPC contracts took place, and it has concluded with
the selection of Saudi Arabian and international contractors to implement the
A robust and competitive process took place for the projects' major contract
packages and the following companies are among the selected contractors:
Petrofac Saudi Arabia Ltd. (Saudi Arabia)
Hyundai Arabia Co. Ltd. (Saudi Arabia)
Hanwha Engineering and Construction Corp. (Korea)
SK Engineering & Construction Co. Ltd. (Korea)
Tecnicas Reunidas (Spain)
JGC Corporation (Japan)
Hitachi Plant Technologies, Ltd. (Japan)
A signing ceremony for the major packages and contracts' awards is scheduled to
be held in Jazan Economic City next month at the project site.
Scheduled for completion in late 2016, Saudi Aramco’s Jazan Refinery and
Terminal mega-project is expected to play a significant role in the supply of
feedstock and fuels to support the growth of major industries in Jazan Economic
City. The Jazan Refinery and Terminal project is expected to create numerous
economic benefits, including business opportunities for local enterprises and
new job opportunities.
About Jazan Refinery and Terminal Project
Saudi Aramco's Jazan Refinery and Terminal Project is a 400,000 barrel-per-day
refinery with associated terminal facilities on the Red Sea near Jazan in the
southwest part of the Kingdom of Saudi Arabia.
Scheduled for completion in late 2016, the refinery will process Arabian Heavy
and Arabian Medium crude oils, and produce gasoline, ultra-low sulfur diesel,
benzene and paraxylene.
The Jazan Refinery will be synergized with a world-scale Integrated Gasification
Combined Cycle plant that is currently at the FEED stage.
The marine terminal will have the capacity to handle Very Large Crude Carriers (VLCCs)
for the supply of crude oil to the refinery, and berths to support refined
product exports from the refinery.
The Ministry of Petroleum and Mineral Resources had entrusted Saudi Aramco to
build and operate the Jazan Refinery and Terminal, which is wholly-owned by
Saudi Aramco and will become an integral part of its refining network to meet
the Kingdom’s energy demand and export surplus fuels to international markets.
Nov 14, 2012 Reuters
Saudi Aramco inks deals on 400,000 bpd Jizan
Saudi Aramco, the world's biggest oil producer, signed deals on Wednesday worth
an estimated $6 billion to build a refinery in the impoverished region of Jizan
that will pump out up to 400,000 barrels of oil per day.
The state-run firm signed the engineering,
procurement, construction contracts with Spain's Tecnicas Reunidas, Japan's JGC,
Hitachi Plant Technologies, South Korea's Hanwha Engineering and Construction
Corp, Hyundai Heavy Industries and Britain's Petrofac. While Saudi al-Ajmi
company won a site preparation contract.
Aramco did not say how much the project was worth. However, industry sources
told Reuters the overall construction cost of the nine packages for the refinery
was around $6 billion.
The refinery will be capable of
processing Arabian Heavy and Arabian Medium crude oil and produce gasoline,
ultra-low sulfur diesel, and benzene.
The refinery will be capable of
processing Arabian crude oils to manufacture approximately 75,000 bpd of
gasoline, 100,000-160,000 bpd of ultra-low-sulfur diesel (10 parts per
million), and 160,000-220,000 bpd of fuel oil, depending on the crude mix
processed. It is envisioned that the proposed refinery will ultimately be
integrated with a future nearby world scale power and water facility. The
marine terminal will have the capability of receiving Very Large Crude
Carriers for the supply of crude to the refinery and will have berths to
support product exports from the refinery.
Hyundai's contract was below $300 million, Hanwha around $600 million, Petrofac
around $1.4 billion, SK and JGC around $1 billion each while Tecnicas Reunidas
around $1 billion. Hitachi's contract was for around $500 million, the sources
The refinery will process heavy and medium crude and will provide feedstock for
conversion industries and a 2,400 megawatt power plant that will feed the
refinery and the Jizan economic city as well as cities on the western coast,
Aramco's CEO Khalid al-Falih said in a speech at the contract signing ceremony.
The project will help generate 1000 direct and 4000 indirect jobs, he said.
"The refinery will be the nucleus for
the Jizan Economic
City and will play a major role in the development and will give it a
competitive edge, which is translated in the feedstock availability for
industries, power and fuel," said Falih.
Primary and Heavy Industries Zone
JEC focuses particularly on heavy
industries with the intensive use of energy and manufacturing industries as
a main advantage of the kingdom. It takes advantage of its strategic
location near major global maritime lines at the Red Sea and the Indian
Ocean which allows the accessibility of these industries in Europe, Asia and
Among the industries designed for construction in Jazan Economic City:-
Saudi Aramco Oil Refinery
The Refinery Project is one of the
most important projects of the Kingdom of Saudi Arabia for the
economical development of Jazan region. Thus, the Custodian of the Two
Holly Mosques engaged Saudi Aramco Company to construct and finance an
oil refinery project with a refining capacity of 400 thousand barrels
per day. This project will contribute considerably in the growth of
development and the creation of job opportunities for the people of
Jazan region. Accordingly, it will add up a virtual advantage which
appeals worldwide investments for Jazan Economic City.
The construction of the Steel Complex
Project (Pan-Kingdom) has already started. It aims to produce metal
plates, with a production capacity of one million tons per annum, and
rebar鉄筋 with a production
capacity of half million tons per annum. The production will start in
the third-quarter of 2011.
Ship Building & Maintenance
A dry dock will be linked to the main
seaport for ship building & maintenance, which will make JEC one of the
best regions in terms of attractiveness towards this category of
industry, and also to serve up boats and fishing vessels.
Secondary Industries Zone
The JEC Master Plan is designed to create
appropriate opportunities for industrial development and recent developed
industries based on the opportunities of different secondary industries
offered by the heavy industries for the concept of local raw materials and
global standards production.
Primary Construction Materials
Metal Fabrication and Manufacturing
Automotive Spare Parts
Human Resources and Business Development
Residential Areas and Seafront District
Saudi Aramco plans 2.6 mil mt/yr PX, 820,000
mt/yr benzene capacity by 2017: source
New paraxylene capacity of 2.6 million mt/year
and benzene capacity of 820,000 mt/year will be built in Saudi Arabia over the
next four years by Saudi Aramco, a source close to the state company said
These aromatics capacities will be at five refinery complexes in the country,
the source added. Saudi Aramco is involved in all these projects either as a
partner or as the sole owner.
The 400,000 b/d Saudi Aramco Total Refinery and Petrochemical Co., or Satorp,
refinery complex at Jubail, scheduled to start operations in the third quarter,
will have a PX capacity of 700,000 mt/year and benzene capacity of 140,000 mt/year,
the source said. While Aramco holds a 62.5% stake in Satorp, France's Total
"Saudi Aramco is already in talks with
prospective buyers of cargoes from the Satorp plant," the source said.
A 700,000 mt/year PX and a 140,000 mt/year benzene plant are part of 400,000 b/d
refinery complex being built by Yanbu Aramco Sinopec Refining Co., or Yasref, at
Yanbu, according to the source. The refinery complex, currently under
construction, is scheduled for a startup in 2014. While Saudi Aramco has a 62.5%
stake in Yasref, China's Sinopec holds the remaining 37.5%.
At end-2015, Petro Rabigh's upcoming second phase petrochemicals complex will
start production at its 1.35 million mt/year PX and 170,000 mt/year benzene
plants, the source said. Petro Rabigh Phase II will include a new ethane-based
steam cracker using 30,000 Mcf/d of ethane and 3 million mt/year of naphtha for
feedstock, he said. Further downstream, the complex will include plants for the
production of ethylene-propylene rubber, thermoplastic olefins, methyl
methacrylate monomer, polymethyl methacrylate, caprolactam, polyols, cumene,
phenol/acetone, acrylic acid, SAP and nylon-6, as well as low density
polyethylene/ethylene vinyl acetate, the source said.
Saudi Aramco and Sumitomo each own a 37.5% stake in Petro Rabigh. The rest of
shares are listed on Saudi stock exchange Tadawul.
Another 1.2 million mt/year PX and 285,000 mt/year benzene capacity will come up
in end-2016 at Saudi Aramco's 525,000 b/d refinery complex at Ras Tanura in east
coast of Saudi Arabia, the source said. Saudi Aramco's 400,000 b/d refinery
complex at Jazan in southwest coast of Saudi Arabia which is scheduled to start
production in early 2017, will have a 650,000 mt/year PX and 85,000 mt/year
benzene capacity, he said.
Rabigh paraxylene (PX) plant of
800,000-850,000 tonnes/year and a benzene unit with a capacity of
Ras Tanur 400,000 tons/year benzene and
460,000 tons/year of paraxylene.
|Saudi Aramco Total Refinery
and Petrochemical Co.
|Yanbu Aramco Sinopec
|Petro Rabigh (Phase 2)
Saudi Aramco focuses on aromatics in its
plans to increase its focus on petrochemicals by converting refinery products
into aromatics, as
ethane availability in Saudi Arabia declines
A new wave of aromatics investments is under
discussion in Saudi Arabia. As part of a move further into petrochemicals,
Saudi Aramco is building refineries with downstream aromatics production, as
well as exploring ways to add aromatics at its existing refineries.
Until now, Aramco's refineries have only
produced oil products. "For the first time, Saudi Aramco is deciding to include
petrochemicals units in its refinery projects," says Paul Hodges, chairman of
UK-based International eChem. "This is moving Saudi Arabia towards more of a
European/Asian/US model of petrochemicals production."
Aramco's first large-scale aromatics facility
will be located at a joint-venture refinery and petrochemicals complex it is
building with France's Total in Al-Jubail. Named Saudi Aramco Total Refining and
Petrochemical (Satorp), the project will have paraxylene (PX) and benzene
capacities of 700,000 tonnes/year and 140,000 tonnes/year respectively, and is
scheduled to begin operations in the second half of 2013.
Aramco also plans to include aromatics
production at refineries in Ras Tanura and Jazan, and is studying an aromatics
project linked to its refinery activities in Yanbu, on the Red Sea coast.
As well as building aromatics units at
refineries, Aramco is developing a petrochemicals project with US major Dow
Sadara Chemical, and is planning an expansion at its existing Rabigh
Refining and Petrochemical (Petro Rabigh) joint venture with Japan's Sumitomo
Chemical. Aromatics are expected to be included in both projects.
15 September 2014 Reuters
Thai PTT, Saudi Aramco in joint Vietnam
Thai energy company PTT has joined with
Saudi Aramco, the world's biggest oil producer, to
submit a proposal to the Vietnamese government to build a $22 billion refinery
and petrochemical complex in Vietnam, a senior PTT official said.
State-controlled PTT and Aramco will each own 40 percent of the project at
Binh Dinh's Nhon Hoi economic zone, with the
Vietnamese government holding the remaining 20 percent, Atikom Terbsiri, PTT
senior executive vice president, told reporters.
"Aramco will help supply crude to an oil refinery with
capacity of 400,000 barrels per day," Atikom said, adding that PTT-owned
Thai Oil and IRPC will
also join the project.
The Vietnamese's trade and industry ministry will consider the proposal, which
will be discussed with Thai Prime Minister Prayuth Chan-Ocha, who is due to
visit Southeast Asian countries in the coming months, Terbsiri said.
The project includes an olefins and aromatic petrochemical
plants with combined capacity of 5 million tonnes a year. It is expected
to take six to seven years before the complex is fully operational.
The completed project would help to meet Vietnam's domestic demand for oil
products and boost its exports.
PTT revised down the value of the project from a previous estimate of $28.7
billion after the Vietnamese government issued a licence for a new refinery in
northern Vietnam. The planned capacity of PTT's oil refinery has been cut by 40
percent from an initial 660,000 barrels per day.
ＰＴＴ 越製油所に応札 日系も競合
プロジェクトは、ベトナム南中部のBinh Dinh(ビンディン)省の東シナ海沿岸のNhon Hoi経済特区に、精製能力66万BPDという世界最大級の製油所を建設するというもの。建設費は287億ドル、着工は2016年で、稼働は2019年となると伝えられている。また、製油所ともに、アロマ装置などの石油化学コンプレックスの建設も計画に含まれている。
21 May 2016
Saudi Aramco, SABIC say no plans to merge
National oil giant Saudi Aramco and Saudi Basic Industries Corp denied on
Saturday they had any plans to merge their petrochemicals businesses after media
reports on the possibility.
They said in a joint statement published in their websites, that “Saudi Aramco
and SABIC note recent speculative news reports about the possibility of merging
their petrochemicals businesses. The companies wish to clarify that they have no
plans to pursue this option.”
Both companies will continue to explore mutually beneficial opportunities to
work together as partners and contribute to the continued growth and
diversification of the Kingdom’s economy.
September 1, 2016
Japan’s Biggest Banks Plan to Sign Agreement
With Saudi Aramco
Mitsubishi UFJ Financial Group Inc.’s banking unit and its two biggest Japanese
peers plan to sign a non-binding agreement with Saudi Arabian Oil Co. in Tokyo
this week to expand lending to the state-run firm as it considers an initial
public offering, people with knowledge of the matter said.
Bank of Tokyo-Mitsubishi UFJ Ltd. President Takashi
Oyamada and Sumitomo Mitsui Financial Group Inc.
Chairman Masayuki Oku are expected to sign a memorandum of understanding in
Tokyo with executives of the oil firm known as Saudi Aramco, according to the
people. An official from Mizuho Financial Group Inc.
will also sign the deal as soon as Thursday, the people said, asking not
to be identified because the information isn’t public.
The Tokyo-based lenders are seeking to get involved in
Aramco’s IPO, two of the people said. Japan’s trade ministry has asked
the oil company to list its shares on the Tokyo Stock Exchange, people with
knowledge of the matter said earlier this week. MUFG and its rivals are
accelerating efforts to grab larger clients abroad like Aramco to counter
slowing loan demand and shrinking interest rates at home.
Spokesmen for the three banks declined to comment. Aramco representatives didn’t
immediately reply to an e-mailed request for comment.
Saudi Deputy Crown Prince Mohammed bin Salman is visiting Japan and China this
week, giving the Asian nations an opportunity to deepen energy ties as the
world’s largest crude exporter prepares what could be the biggest IPO ever.
Aramco and Japanese government officials plan to discuss a potential Tokyo
listing during the visit, according to one of the people.
NICDP, Saudi Aramco and ChemChina sign MoU to
explore cooperation and investment opportunities in Saudi Arabia
· New agreement signed in conjunction with HRH Deputy Crown Prince Mohammed Bin
Salman’s visit to China
· Cooperation to cover broad range of industrial sectors including downstream,
chemicals, rubber, R&D and photovoltaic value chain development.
· Agreement includes feasibility of using Saudi Aramco’s crude oil grades as
feedstock for ChemChina’s refineries.
Saudi Aramco President and Chief Executive Officer, Amin H. Nasser, Khalid
Al-Salem, President of the National Industrial Clusters Development Program (NICDP:国家産業クラスター開発計画庁)
and China National Chemical Corporation (ChemChina) President, Yang Xingqiang
signed a memorandum of understanding here today that encourages all parties to
seek investment opportunities in the energy and chemical sectors in the Kingdom.
The agreement sets the stage for NICDP and ChemChina to explore investment
opportunities in the Kingdom of Saudi Arabia in renewable
energy including the development of manufacturing facilities for the
organo-silicone and solar energy photovoltaic (PV) value chain,
specialty chemicals and
automotive tires using local raw materials.
The agreement also calls for the potential development of other industrial
sectors including performance fibers for aerospace and
high tech applications, industrial non-tire rubber, animal feed additives and
The agreement explores broad cooperation with Saudi Aramco in
crude and oil products supply. The agreement calls for assessment of the
feasibility of using Saudi Aramco’s crude oil grades as
feedstock for ChemChina’s refineries through a long-term Crude Oil Sales
Agreement (COSA) that will commence 2017. The companies will assess cooperation
in exchanging oil products from ChemChina’s refineries and subsidiaries with
Saudi Aramco and its subsidiaries.
“This agreement is a forward step in realizing the Saudi Vision 2030 goals,”
said, Amin H. Nasser, “Our global leadership in oil and petrochemicals is
well-known, and this collaboration will lay the groundwork for significant
growth in industrial capabilities, expanded employment and enable new and
emerging industries in the Kingdom.”
“The three-party cooperation offers extraordinary potential and provides unique
business and strategic opportunities for ChemChina which is implementing
President Xi’s Belt and Road Initiative and its supply-side structural reforms.
We believe this cooperation is only the spark to a dazzling future,”said Ren
Jianxin, Chairman of ChemChina.
The National Industrial Clusters Development Program (NICDP) is leading the
development of five fast-growing, export-oriented industrial clusters in Saudi
Arabia: Automotive; Minerals and Metal Processing; Solar Energy products;
Plastics and Chemicals; and Pharma & Biotech. The strategy is intended to make
the most of Saudi Arabia's abundant energy, natural resources and raw materials
as well as generating growth in exports and realize benefits in technology and
Saudi Aramco and Indonesia’s state-owned oil
company Pertamina finalized on Thursday an agreement on a $5 billion
expansion of Indonesia’s largest oil refinery in Central Java.
The agreement was signed between Saudi
Aramco’s President and CEO Amin Al-Nasser and Pertamina’s President Dwi
Soetjipto at the company’s headquarters in Jakarta.
Nasser highlighted the important growth
witnessed in Indonesia, especially with the adoption of “an ambition
economic reform program”, which aims at increasing the size of investments
in infrastructure and energy.
He added that the agreement signed
between Saudi Aramco and Pertamina would allow the Saudi company to further
meet the increasing energy needs in the fast-growing region.
For his part, Soetjipto said: “The
agreement represents the two companies’ strong commitment to develop and
strengthen the energy infrastructure across the Indonesian territories, in
particular in refineries.”
The two companies will establish
a joint venture for the project, in which
Pertamina will own a 55% stake. The upgrade
will increase the refinery’s capacity from 348,000
barrels per day to 400,000 barrels per day.
( MBSD )
RU II Dumai
RU III Plaju
RU IV Cilacap
RU V Balikpapan
RU VI Balongan
RU VII Kasim
Pertamina refineries units operate 6
refineries with total capacity of 1,046.70 thousand barrels. Some
refineries as those in Refinery Unit III Plaju and Refinery Unit IV
Cilacap are integrated with Petrochemical plant and producing Purified
Terapthalic Acid (PTA) and Paraxylene. Some of the refineries produce
LPG product as those in Pangkalan Brandan, Dumai, Plaju, Cilacap,
Balikpapan, Balongan, and Mundu. LPG plants in Pangkalan Brandan and
Mundu are operationally separated from oil refinery and take gas as the
Saudi Aramco will supply most of the
crude oil for the refinery. The company said that it has completed the
design phase, adding that the main architectural designs would be ready in
the first quarter of 2017. The project is scheduled to be completed in 2021.
The expansion will “help Pertamina to
enhance its downstream competitiveness,” said Soetjipto. It will also
increase the refinery’s capacity in derivatives such as petrochemicals.
The move follows a preliminary agreement
reached last year. Indonesia, a net oil importer, is expanding its
refineries to meet growing domestic demand. Saudi Arabia, meanwhile, has
been seeking stable revenue amid low crude prices and competition from other
oil producing countries.
20 May 2017
Saudi Aramco signs agreements with American companies to promote bilateral trade
and investment between Saudi Arabia and United States
Saudi Aramco today signed agreements with major U.S. companies which will pave
way for the company to enhance its business synergy with the U.S. as well as
attracting investments from its U.S. counterparts to the Kingdom.
The agreements were signed in Riyadh today in the presence of The Custodian of
The Two Holy Mosques King Salman Bin Abdulaziz Al Saud and U.S. President Donald
Trump. President Trump’s visit to Saudi Arabia also includes a business summit
attended by Saudi and U.S. chief executives, to further cement the strong
historic relations between the Kingdom and the U.S.
The agreements were signed by Saudi Aramco President and CEO Amin H. Nasser and
his U.S. counterpart.
“The agreements signed today by Saudi Aramco with major American companies
underscore the purposeful collaboration between Saudi Arabia and the United
States in areas of strategic importance linking Saudi Vision 2030 and America’s
own economic depth and strength,” he said.
The agreement which are estimated to be around $50 billion
highlights the magnitude of strategic growth and diversification underway at
Saudi Aramco, including strengthening the company’s standing as the world’s
leading energy and chemicals company and focus on local capacity building of its
technical expertise and workforce.
Among the agreements signed or updated are:
JV with Jacobs Engineering - New joint ventures to provide program and
construction management services; to elevate project execution and job creation
throughout Saudi Arabia and across the region
Agreement with Jacobs Engineering Group
Inc. to form a Saudi Arabia-based joint venture company that provides
professional program and construction management (PMCM) services for
building and infrastructure projects in the Kingdom. The parties also agreed
to form a joint venture to provide PMCM services in the Middle East and
North Africa. The agreement will create 3000 jobs.
JV with National Oilwell Varco (NOV) - NOV
and Saudi Aramco Announce Joint Venture to Provide High-Specification Drilling
Rigs and Advanced Drilling Equipment
An MoU with Saudi Aramco to form a joint
venture in the Kingdom of Saudi Arabia. Through its state-of the art
manufacturing and fabrication facilities in the Kingdom and NOV’s
market-leading drilling technologies, the joint venture will provide
high-specification land rigs, rig and drilling equipment and offer certain
aftermarket services. Additionally, the companies announced their proposed
joint venture will establish an education center to train Saudi technicians
in the maintenance and operation of the sophisticated drilling technology
that the venture will bring to the Kingdom. It is expected to create 1,000
Broader Oil & Gas Investment Feasibility Study MOU with GE – value adding to
existing portfolio with a long-time partner
An MoU which will examine the feasibility
of new business development across the energy value chain including enablers
covering the Oil & Gas upstream, midstream and downstream eco-system
including manufacturing and services,. It is expected to create 2,000 jobs.
MOU with GE – to undertake a digital
transformation of Saudi Aramco’s operations
Within the oil and gas sector, Saudi
Aramco and GE have signed an MoU to undertake a digital transformation of
Saudi Aramco’s operations with a goal of generating US $4 billion in annual
productivity improvements. To enable the transformation, GE will provide a
private Predix Industrial IoT cloud, GE’s pioneering APM and
industry-specific applications, and staff a Digital Transformation Office (DTO)
with local industrial engineers, process experts, and technologists. The DTO
is expected to generate 250 high-tech Saudi jobs and stimulate local
economic demand for an additional 500 Digital Industrial careers. To support
the growth of a broader Predix economy, GE will work within the Saudi Vision
2030 to develop a STEM educational curriculum for high schools and
universities to develop Saudi Digital Industrial talent to meet future
demand for developers and data scientists. The collaboration is a strong
example of Saudi Aramco’s industry leadership and commitment to Saudi Vision
2030 to develop high-tech and knowledge worker careers that add significant
value to the local economy.
MOU (updated) with Rowan – for the creation
of offshore drilling company in-Kingdom
A non-binding MOU through which the
partners to Rex Offshore will develop the designs of the jack-ups rigs which
they intend to manufacture through the Ras Al Khair Maritime Yard in Saudi
Arabia. This MOU is an extension to the agreement signed in November 2016 to
create a 50/50 joint venture to own, operate, and manage offshore drilling
rigs in Saudi Arabia. The new joint venture company will use Rowan's
established business in Saudi Arabia as its base with a scope of operations
covering Saudi Arabia's existing and future offshore oil and gas fields. The
new company is anticipated to commence operations in the second quarter of
2017. It is expected to create 1,000 jobs.
MOU (updated) with Nabors – to explore land drilling improvisation and
An MOU to explore improving and
optimizing land drilling supply logistics, services deployment, and rig
moves for the Onshore Rig Ownership & Operations JV. Benefits include
eliminating rig mobilization costs, reducing day rates, enticing foreign
direct investment, creating jobs with Saudization levels anticipated to
reach 80%. It is expected to create 1,000 jobs.
MOU with McDermott – to expand and develop
the company’s physical and human capital within the Kingdom
McDermott International, Inc. announced
today it has signed another MOU with Saudi Aramco to expand and develop the
company’s physical and human capital within the Kingdom as part of Aramco’s
In-Kingdom Total Value Add (IKTVA) program. The MOU demonstrates McDermott’s
support of Saudi Arabia’s Vision 2030 and Aramco’s IKTVA program. The
Company has committed to a nine-initiative plan to increase its contribution
to the country’s localization efforts and aid Saudi Aramco in meeting its
2021 objectives. McDermott plans to increase the number of Saudi nationals
in its Middle East workforce and is expected to create 3,000 jobs.
MOU with Honeywell – Advancing Digitization
of the oil and gas industry
MOU advances both companies long-standing
cooperation and further supports the development and diversification of
Saudi Arabia’s oil and gas sector, and accelerates the benefits of the
Industrial Internet of Things (IIoT) within Saudi Aramco’s operations. The
MOU will create over 400 jobs, as well as support suppliers with significant
MOU with Honeywell – New Partnership Agreement In Support Of Saudi Arabia’s
MOU will jointly explore the potential
for new engineering capabilities and systems to be developed at several of
Saudi Arabia’s world-leading industrial centers, supporting the IKTVA
Program’s objectives of increased investment, economic diversification, job
creation, and workforce development within the Kingdom.
MOU with Schlumberger
MOU to deliver a series of projects
related to localizing oil field goods and services. The MOU will create
2,600 jobs, as well as support suppliers with significant funding.
MOU with Halliburton
MOU to deliver a series of projects
related to localizing oil field goods and services. The MOU will create over
750 jobs, as well as support services with significant worth.
MOU with Weatherford
MOU to deliver a series of projects
related to localizing oil field goods and services. The MOU will create over
900 jobs, as well as support suppliers with significant funding.
MOU with Baker Hughes
MOU to deliver a series of projects
related to localizing oil field goods and services. The MOU will create 600
jobs, as well as support suppliers with significant funding.
MOU with Emerson
Collaboration for digital transformation
within Saudi Aramco’s operations which covers Plantweb Digital Ecosystem
Solutions (IIoT); competency development programs (training of Saudi Aramco
employees), digital oil field initiatives; and research and development in
advanced applications for process automation.
May 31, 2017 Saudi Aramco
Saudi Aramco signs landmark Joint Venture
agreement with Lamprell, Bahri, and Hyundai heavy industries to establish a
world-class maritime yard in Saudi Arabia
Saudi Aramco signed a shareholder agreement with Lamprell
plc (“Lamprell”)( London-listed United Arab Emirates engineering firm),
the National Shipping Company of Saudi Arabia (“Bahri”
)(state-controlled firm which ships oil for Aramco), and
Hyundai Heavy Industries Co. Ltd (“HHI”) to enter into a joint venture
(“JV”) partnership with respect to the establishment,
development and operation of a world-class maritime yard, which is the
anchor project within the King Salman International Complex for Maritime
Industries and Services located in Ras Al-Khair, near the Jubail Industrial City
on the Kingdom’s east coast.
This strategic partnership among industry leading companies is positioned to
capitalize on the rapidly-growing maritime requirements in the region by
offering globally competitive, safe, high quality and on-time solutions to
customers. The new JV localizes essential links of Saudi Aramco’s supply chain
related to offshore drilling and shipping activities, which will lead to
optimized cost, reduced response times and improved agility for Saudi Aramco and
The integrated maritime yard will be the largest in the region in terms of
production capacity and scale, providing an unprecedented mix of products and
services in the region and enabling Saudi Aramco and its supply chain partners
to meet their manufacturing, maintenance, repair and overhaul requirements for
offshore oil and gas rigs, offshore support vessels, and
commercial vessels, including Very Large Crude Carriers (VLCC). The new
facility shall have the capacity to manufacture 4 offshore
rigs, over 40 vessels including 3 VLCCs, and service over 260 maritime
products annually. Major production operations are expected to commence in 2019
with the facility reaching its full production capacity by 2022. This initiative
will also contribute towards localizing expertise related to the maritime
industry and job creation in the Kingdom.
October 16, 2017
China offers to buy 5 percent of Saudi Aramco directly - sources
China is offering to buy up to 5 percent of Saudi Aramco
directly, sources said, a move that could give Saudi Arabia the flexibility to
consider various options for its plan to float the world’s biggest oil producer
on the stock market.
Chinese state-owned oil companies PetroChina and Sinopec
have written to Saudi Aramco in recent weeks to express an interest in a direct
deal, industry sources told Reuters. The companies are part of a state-run
consortium including China’s sovereign wealth fund, the sources say.
Saudi Arabia’s Crown Prince Mohammed bin Salman said last year
the kingdom was considering listing about 5 percent of
Aramco in 2018 in a deal that could raise $100 billion, if the company is
valued at about $2 trillion as hoped.
“The Chinese want to secure oil supplies,” one of the industry sources said. “They
are willing to take the whole 5 percent, or even more, alone.”
PetroChina and Sinopec declined to comment.
The initial public offering (IPO) of Saudi Aramco is the centerpiece of an
economic reform plan to diversify the Saudi economy beyond oil and it would also
provide a welcome boost to the kingdom’s budget which has been hit by low oil
But the IPO plan has created public misgivings that Riyadh is relinquishing its
crown jewels to foreigners cheaply at a time of low oil prices. Some Aramco
employees would like the whole idea to be shelved, sources say.
Internal disagreements between what some advisers recommend and what the crown
prince wants have delayed several key decisions about the IPO, industry sources
The sources also point to disagreements between senior government officials,
with some pushing only to list Aramco locally or to delay the IPO beyond 2018
when they hope oil prices will have stabilized at $55 to $60 a barrel.
“A range of options, for the public listing of Saudi Aramco, continue to be held
under active review. No decision has been made and the IPO process remains on
track,” said a Saudi Aramco spokesman.
Industry sources said the sale of a significant stake to Chinese firms was one
of several options being considered by the kingdom as it weighs the benefits of
a public listing.
One option includes selling some stock immediately to so-called cornerstone
investors, such as China, and then selling shares on the local bourse as well as
an international stock exchange, with New York, London and Hong Kong in the
Two senior industry sources said Riyadh was keen on China, its biggest buyer of
oil, becoming a cornerstone investor in Aramco. But no decision has yet been
taken on whether to accept China’s offer, or how much stock could be offered to
cornerstone investors, the sources said.
China is creating a consortium made up of state-owned oil firms, banks and its
sovereign wealth fund to act as a cornerstone investor in the IPO, people with
knowledge of the discussions told Reuters in April.
Sources told Reuters on Friday that Saudi Aramco was now evaluating a private
placement of shares to a Chinese investor as a precursor to an international
IPO, which could be delayed beyond 2018.
But allowing China to buy 5 percent would effectively mean cancelling the IPO
altogether, which is an unlikely outcome, one of the sources said.
Sources said postponing the listing would be the least preferred option, given
the preparations that have been already done and the determination of Prince
Mohammed, who is expected to be the next king, to proceed with the listing.
Two sources told Reuters that sovereign wealth funds from South Korea and Japan,
which are also major buyers of Saudi oil, were also interested in acquiring a
stake in Aramco.
One of the sources said Russia’s sovereign wealth fund RDIF was keen to invest
in the Aramco IPO too.
Any alliance between Saudi Arabia and China could go beyond the purchase of a
stake in Aramco and also include a reciprocal move by the Saudi company to
invest in the Chinese refining industry, according to industry sources.
That would fit in with a push by the world’s top oil exporter to regain its
dominance in supplying China, the world’s second largest oil consumer after the
United States, having lost the upper hand to Russia this year.
Saudi Energy Minister Khalid al-Falih said in August that he expected to
finalize a deal with PetroChina early next year to invest in the Yunnan oil
refinery in China’s southwest that started operations in July.
Such a move would help Aramco secure a share of crude supply starting in 2018 to
the plant, which processes 260,000 barrels of oil a day (bpd).
Talks are focusing on finalizing the size of the investment and getting final
approval from Aramco’s board for the valuation of the Yunnan venture, industry
Saudi exports could also receive a boost through a separate supply pact with the
state-run China National Offshore Oil Corp which is starting a new 200,000 (bpd)
plant in southern China.
Feb 01, 2018
Aramco, Alphabet Discuss Joint Tech Hub In
Saudi Arabia’s state oil giant Saudi Aramco and
Google’s parent company Alphabet have entered into
talks about potentially building a big technology hub in Saudi Arabia, The Wall
Street Journal reported on Thursday, citing people familiar with the
Alphabet and Aramco are discussing a joint venture under which the Silicon
Valley giant will help the Saudi oil group to build data
centers in Saudi Arabia, but it was not immediately clear whose data the
centers would host or who would control them, according to WSJ sources.
Senior managers at Alphabet and Aramco have been discussing the creation of a
potential joint venture for months, and those talks have included Alphabet’s CEO
Larry Page, some WSJ sources said.
The talks have been encouraged by Saudi Arabia’s Crown Prince Mohammed bin
Salman, who is a technophile and wants to give the Kingdom a high-tech look.
The Crown Prince is also the Saudi official supervising the plans for the
initial public offering of Aramco, set for the second half of this year and
expected to be the world’s largest IPO in history. Saudi Arabia aims to
diversify its economy away from oil with the proceeds from the listing of 5
percent of Aramco, which—if the Saudi valuation for the entire company at $2
trillion stands—could bring the Kingdom $100 billion.
A possible deal with Google’s parent company could further help Saudi Arabia’s
diversification from crude oil and toward the Crown Prince’s high-tech
Last month, Reuters reported that two other Silicon Valley giants—Amazon
and Apple—are in licensing talks with Saudi Arabia to invest in the Kingdom.
While both Apple and Amazon sell products in Saudi Arabia via third parties,
they have yet to set up direct presence there. Apple is reportedly in talks with
the Saudi Arabian General Investment Authority (SAGIA), and a licensing
agreement for Apple stores is expected by February, with a first retail store
targeted for 2019. Amazon is in an earlier stage of talks with no set date for
setting up a presence, two sources familiar with the talks told Reuters.
Googleの創業者でありCEOのラリー・ペイジが、新会社 Alphabet Inc.
の設立に伴い、現行のGoogle は Alphabetの子会社となり、CEOはサンダー・ピチャイが引き継ぎます。
逆にGoogleから切り離されAlphabet 傘下の子会社となるのは、先端技術研究部門の X Labs
(元 Google X)、ドローンによる物流を事業化する
Science、Calico、投資事業の Ventures、Capital など。
新会社 Alphabet の命名については、Google の G
Saudi Aramco signed today a Memorandum of
Understanding (MOU) with “Ratnagiri Refinery and
Petrochemicals Ltd.” (RRPCL), a consortium of Indian oil companies which
includes The Indian Oil Corporation Ltd. (IOCl),
Bharat Petroleum Corporation Ltd. (BPCL), and
Hindustan Petroleum Corporation Ltd. (HPCL), to
jointly develop and build an integrated mega refinery and petrochemicals complex
at Ratnagiri, in the state of Maharashtra. Saudi Aramco may also seek to include
a strategic partner to co-invest in the mega refinery.
The strategic partnership brings together
crude supply, resources, technologies, experience, and expertise of these
multiple oil companies with an established commercial presence around the world.
A pre-feasibility study for the refinery has
been completed and the parties are now finalizing the project’s overall
configuration. Following the signing of the MOU, the parties will extend their
collaboration to discuss the formation of a joint venture that would provide for
joint ownership, control, and management of the project.
The refinery will be capable of processing
1.2 million barrels of crude oil per day. It will
produce a range of refined petroleum products, including gasoline and diesel,
meeting BS-VI fuel efficiency norms. The refinery will also provide feedstock
for the integrated petrochemical complex, which will be capable of producing
approximately 18 million tons per annum of petrochemical production.
In addition to the refinery, cracker and
downstream petrochemical facilities, the project will include associated
facilities such as a logistics, crude oil and product storage terminals, raw
water supply, as well as centralized and shared utilities.
Ratnagiri Refinery and Petrochemicals Ltd. (RRPCL)
will rank among the largest world refining and petrochemicals projects and will
be designed to meet India’s fast-growing fuels and petrochemicals demand. The
project cost is estimated at around $44 billion.
“Investing in India is a key part of our
company’s global downstream strategy, and another milestone in our growing
relationship with India,” said Saudi Aramco President and CEO Amin H. Nasser,
who also noted the opening in 2017 of Aramco Asia’s New Delhi office with a
mandate to expand Saudi Aramco’s international portfolio in this key economic
“The signing marks a significant development
in India’s oil and gas sector, enabling a strategic joint venture and investment
partnership that will serve India’s fast-growing demand for transportation fuels
and chemical products. Participating in this mega project will allow Saudi
Aramco to go beyond our crude oil supplier role to a fully integrated position
that may help usher in other areas of collaboration, such as refining,
marketing, and petrochemicals for India’s future energy demands,” said Nasser.
May 17, 2018 土地取得で難航
Land acquisition woes thwart India's mega
refinery plan with Saudi Aramco
At the International Energy Forum in Delhi in April, the world's top oil
producer Saudi Aramco inked a preliminary deal here to partner with a consortium
of Indian players to build a $44 billion refinery and petrochemical project on
India's west coast.
The huge project was touted as a gamechanger for both parties - offering India
steady fuel supplies and meeting Saudi Arabia’s need to secure regular buyers
for its oil. Despite the obvious benefits, though, the prospects for the plan -
in the works since 2015 - are growing dimmer by the day.
Thousands of farmers oppose the refinery and are refusing to surrender land,
fearing it could damage a region famed for its Alphonso
mangoes, vast cashew plantations and fishing hamlets that boast bountiful
catches of seafood.
“We earn enough to fulfill our needs and we do not want to surrender our lands
for a refinery at any cost,” says Sandesh Desai, standing amid his fruit-laden
mango orchard in Nanar, a village in Ratnagiri district, some 400 km (250 miles)
south of Mumbai.
Land acquisition has always been a contentious issue in rural India, where a
majority of the population depends on farming for their livelihood. In 2008, for
example, India’s Tata Motors had to shelve plans for a car factory in an eastern
state after facing widespread protests from farmers.
And while Prime Minister Narendra Modi has tried to ease land acquisition rules
to jumpstart delayed projects worth tens of billions of dollars, the government
has faced resistance to amending populist laws enacted by his predecessors.
Like Desai, a majority of the farmers from 14 villages around Ratnagiri that
need to be relocated for the refinery project firmly oppose the plan, a state
government official told Reuters.
Opposition politicians and even a local ally of Modi’s Bhartiya Janta Party
(BJP) support the farmer movement, complicating matters further for the
government ahead of state and general elections in 2019.
The state government, which is responsible for acquiring the land for the
project, has so far failed to secure even one acre of the roughly 15,000 acres
needed for the refinery, Maharashtra Industries Minister Subhash Desai told
“The state is not going to acquire land as a majority of the farmers are against
the plan,” said Desai, the minister, who is a member of the Shiv Sena, a
regional party allied with the BJP in the Maharashtra state government. Under
land acquisition rules at least 70 percent of the land owners need to provide
consent for a project, he said.
Still, some believe that the opponents are only objecting to get better
compensation packages for their land.
“Eventually all stakeholders will give their consent, but it will take time,”
said Ajay Singh Sengar, who heads a rival forum that supports the refinery
project. A local government official in the area said he thought many farmers
would agree to a deal once a compensation package was announced.
The Ratnagiri Refinery & Petrochemicals Ltd (RRPL), which is running the
project, says the 1.2-million-barrel-per-day (bpd) refinery, and an integrated
petrochemical site with a capacity of 18 million tonnes per year, will help
create direct and indirect employment for up to 150,000 people, with jobs that
pay better than agriculture or fishing.
But farmers say they have sufficient work in their orchards and fields.
“We don’t have enough people to maintain our mango orchards. That’s why every
year we employ migrant labor from Nepal,” says Arvind Samant, the secretary of a
farmers’ and fishermen’s group that was created to organize opposition to the
Samant says instead of a refinery the government should bring agro-processing
plants or other industries that suit local needs.
RRPL, a joint venture between Indian Oil Corp (IOC), Hindustan Petroleum and
Bharat Petroleum, said suggestions the refinery would hurt the environment were
baseless. It says it will continue to cultivate mangoes and cashews on some
4,500 acres of land around the project.
Despite the opposition, RRPL is hopeful the project will proceed.
“Some people misguided farmers and created fear. We’re now trying to answer each
and every doubt,” said Anil Nagwekar, a spokesman for the RRPL, adding RRPL was
struggling to convince farmers as they refused to even discuss the plan with the
Hundreds of people have joined non-violent protests, blocking surveyors from
even measuring land needed for the site, said Omkar Prabhudesai, who heads the
local group opposing the project.
“There is no point in listening to the company’s views. We have already decided
not to give our land,” said Prabhudesai.
The refinery, announced in 2015, was to be commissioned by 2022, but delays in
land acquisition mean the deadline is likely to be pushed back.
“Ideally the state government should have acquired land by now and the work for
the project should have started. The delay could impact deadlines,” said RRPL’s
Saudi Aramco declined to comment, while India’s oil ministry did not respond to
a Reuters email seeking comment.
Even if the government wanted to implement the project, it would not start any
land acquisition process before elections in 2019, conceded a senior state
government official, who asked not to be named due to the sensitivity of the
“Sensing political mileage every political party is opposing the project. For
the next one year there won’t be any progress,” the official said.
Workers of the Maharashtra Navnirman Sena (MNS), a regional party, vandalized
offices of RRPL in Mumbai in April.
An MNS spokesman confirmed reports of the incident and said the party was
strongly opposed to the refinery plan. Parties like the Indian National
Congress, and the Nationalist Congress Party also oppose the plan.
Still, some officials remain hopeful.
Building a large project such as this in India was possible, but could take
years, said IOC’s head of refineries Rama Gopal.
“We conceived the Paradip refinery project in 1994,” he said, referring to a
plant it runs on the east coast. “But for various reasons the project got
delayed and it was finally only commissioned in 2014.”
Saudi Aramco in talks
with sovereign wealth fund PIF to buy SABIC stake
Saudi Aramco is in early talks
to acquire a stake in Saudi Basic Industries Co (SABIC) from the
Public Investment Fund (PIF), the oil giant and Saudi Arabian
sovereign wealth fund said on Thursday.
Aramco and PIF are in early
stage talks about a potential private sale and there is no
certainty the transaction would complete, they said in separate
15 Aug 2018
approves SATORP, Motiva chemicals expansion plans
State energy giant Saudi Aramco has approved
two major plans to expand its chemicals production inside the kingdom and in
the US, the company said Wednesday.
Its board of directors signed off on the
expansion project at its joint venture refinery and petrochemicals complex
with Total, as well as funding for its front-end engineering and design on
Sunday, Aramco said in its weekly in-house magazine, the Arabian Sun.
After years of talks between the
partners, Aramco and Total announced plans in April to
build a new petrochemicals facility next to the 400,000 b/d SATORP complex
at Jubail, on the kingdom's Persian Gulf coast.
The new $5 billion complex, which will be
integrated into the SATORP refinery, started operations in 2015. It will
include a mixed-feed cracker, processing 50% ethane
and refinery off-gas, to produce as much as 1.5
million mt/year of ethylene. No details have been given on the
planned start-up date yet.
The board also approved a funding request
for chemicals capacity expansion at Aramco's US
subsidiary Motiva Enterprises, the company said.
Motiva signed two agreements in April
with Honeywell UOP and TechnipFMC, to evaluate proprietary technology
for a mixed-feed cracker, as well as benzene and paraxylene production.
These will be part of a potential new complex at the 603,000 b/d Port Arthur
refinery in Texas.
benzene and paraxylene (byproducts of gasoline production)
→ethylene feedstocks （Honeywell UOP’s technology）
ethylene feedstocks →2 million tons
a year of ethylene ( Technip FMC’s technologies )
Aramco plans to raise its global refining
capacity to between 8 million b/d and 10 million b/d, from 5.4 million b/d
Saudi oil minister Khalid al-Falih, who
also sits on Aramco's board, said last May the company planned to invest $20
billion over the next five years in its US refining brand, to take advantage
of the US' feedstock crude and gas for petrochemical production.
Aramco Total Refining and Petrochemical Company(SATORP)
April 10, 2018
the official visit to Paris by Crown Prince of Saudi Arabia,
HRH Mohammed bin Salman, Saudi Aramco and Total signed a
memorandum of understanding to build a giant petrochemical
complex in Jubail, Saudi Arabia.
The complex will be integrated
downstream of the SATORP refinery, a joint venture between
Saudi Aramco (62,5%) and Total (37,5%)
in Jubail, in a move designed to fully exploit
operational synergies. This world-class refinery, whose
capacity increased from 400,000-barrel-per-day at its
start-up in 2014 to
440,000-barrel-per-day today, is recognized as being
one of the most efficient in the world.
Located next to the
SATORP refinery in the same industrial area, the complex
will comprise a world-size mixed-feed steam cracker (50%
ethane and refinery off-gas) with a capacity of
1.5 million tons per year of ethylene
and related high-added-value petrochemical units. The
project will represent an investment of
around $5 billion. The two
partners are planning to start the front-end engineering and
design (FEED) in the third quarter of 2018.
The cracker will feed
other petrochemical and specialty chemical plants
representing an overall amount of $4
billion investment by third party investors.
In total, $9 billion will
be invested, creating 8,000 local direct and indirect jobs.
The project will produce more than 2.7 million metric tons
of high value chemicals.
“The agreement deepens
the exemplary relationship enjoyed by our two companies over
many decades. It is one that has evolved from a standard
buyer-seller arrangement to one imbued with common interests
to further develop and diversify our businesses,“ commented
Amin H. Nasser, President and Chief Executive Officer of
Saudi Aramco. “Our joint venture SATORP is a remarkably
successful model of industry partnership and we are keen to
build on this success to further underpin Saudi Aramco’s
strategy to expand its capacity in the chemicals sector by
“This project illustrates
our strategy of maximizing the integration of our large
refining and petrochemical platforms and of expanding our
petrochemical operations from low-cost feedstock, to take
advantage of the fast growing Asian polymer market,"
commented Patrick Pouyanné, Chairman and CEO of Total.
“Furthermore, this project will enable us to strengthen our
ties with Saudi Aramco, with whom we successfully operate
our biggest and most efficient refinery in the world.
Finally, it will contribute to the Vision 2030 of the
Kingdom by creating 8,000 jobs and bringing in new
April 8, 2018
Aramco takes step to integrating
petrochems into United States'
took the first steps to integrating a
petrochemicals business into the United
States’ biggest oil refinery, which is
operated by its subsidiary Motiva
Aramco’s Chief Executive
Amin Nasser signed memoranda of understanding (MoUs) worth
$8 billion-$10 billion with Honeywell UOP and Technip FMC to
study petrochemical production technology for use in a
chemical plant the company is considering building at the
Port Arthur refinery.
Saudi Arabia’s Crown
Prince Mohammed bin Salman, who was winding up a two-week
visit to the United States, was present at the signing in
Houston, Texas, on Saturday along with Saudi Energy Minister
Khalid al-Falih and U.S. Energy Secretary Rick Perry.
“These agreements signal
our plans for expansion into petrochemicals,” Motiva’s Chief
Executive Brian Coffman said.
Aramco, which wants to
develop its downstream business as the government prepares
to sell up to 5 percent of the world’s largest oil firm in
an initial public offering (IPO) this year, wants to use oil
as a major petrochemicals feedstock.
Coffman also said Motiva
was evaluating boosting the 603,000
barrel-per-day (bpd) Port Arthur refinery’s capacity to 1
million or 1.5 million bpd, which would make it the
largest in the world.
The aromatics unit for
which Honeywell UOP’s technology is being considered under
one of the MoUs, would convert benzene
and paraxylene, byproducts of gasoline production, into 2
million tons annually of feedstocks for chemicals and
The other MoU would allow
Aramco to use Technip FMC’s mixed-feed
ethylene production technologies in the United States.
The technology would produce 2 million
tons a year of ethylene, which is used to make
plastics, Motiva said.
The final investment
decision on setting up a multi-billion-dollar petrochemical
plant at Port Arthur is not expected until 2019, and is
“dependent on strong economics, competitive incentives, and
regulatory support,” Aramco said in a statement.
Coffman did not provide a
timeline for the possible expansion of the Port Arthur
refinery’s crude oil processing capacity.
“That’s something we’re
evaluating, we’re studying for in the future,” he said.
August 23, 2018 Reuters
Exclusive: Aramco listing plan halted, oil
giant disbands advisors - sources
Saudi Arabia has called off both the domestic
and international stock listing of state oil giant Aramco, billed as the biggest
such deal in history, four senior industry sources said on Wednesday 8/22.
The financial advisors working on the proposed listing have been disbanded, as
Saudi Arabia shifts its attention to a proposed acquisition of a “strategic
stake” in local petrochemicals maker Saudi Basic Industries Corp 2010.SE, two of
the sources said.
“The decision to call off the IPO was taken some time ago, but no-one can
disclose this, so statements are gradually going that way - first delay then
calling off,” a Saudi source familiar with the IPO plans said.
Saudi Arabia’s energy minister denied that Aramco’s initial public offering
would be called off, in a statement issued early on Thursday.
“The government remains committed to the initial public offering of Saudi Aramco,
in accordance with the appropriate circumstances and appropriate time chosen by
the Government,” Energy Minister Khalid al-Falih said in the statement.
He said Riyadh had taken measures to prepare for the listing and that the timing
would depend on factors including favorable market conditions, and a planned
downstream acquisition in the next few months.
The proposed listing of the national champion was a central part of Crown Prince
Mohammed bin Salman’s reform drive aimed at restructuring the kingdom’s economy
and reducing its dependence on oil revenue.
The prince announced the plan to sell about 5 percent of Aramco in 2016 via a
local and an international listing, predicting the sale would value the whole
company at $2 trillion or more. Several industry experts however questioned
whether a valuation that high was realistic, which hindered the process of
preparing the IPO for the advisors.
Stock exchanges in financial centers including London, New York and Hong Kong
have been vying to host the international tranche of the share sale.
An army of bankers and lawyers started to fiercely compete to win advisory roles
in the IPO, seen as a gateway to a host of other deals they expected to flow
from the kingdom’s wide privatization program.
International banks JPMorgan, Morgan Stanley and HSBC, were working as global
coordinators, boutique investment banks Moelis & Co and Evercore were chosen as
independent advisors and law firm White & Case as legal adviser, sources had
previously told Reuters.
More banks were expected to be named but no bookrunners were formally appointed
despite banks pitching for the deal.
Lawyers, bankers and auditors are all essential in the drafting the prospectus,
a formal document that provides essential details on the company.
“The message we have been given is that the IPO has been called off for the
foreseeable future,” said one of the sources, a senior financial advisor.
“Even the local float on the Tadawul Stock Exchange has been shelved,” the
Al Falih said in the company’s 2017 annual report, released in August, that
Aramco “continued to prepare itself for the listing of its shares, a landmark
event the company and its board anticipate with excitement.”
Aramco had a budget which it used to pay advisors until the end of June. This
has not been renewed, one of sources said.
“The advisors have been put on standby,” a third source, a senior oil industry
“The IPO has not been officially called off, but the likelihood of it not
happening at all is greater than it being on.”
Sources have previously told Reuters that in addition to the valuations,
disagreements among Saudi officials and their advisers over which international
listing venue to be chosen had slowed down the IPO preparations.
08 Oct 2018
Saudi Aramco, Total finalize plans to build Jubail ethylene complex
French oil major Total and Saudi Aramco on Monday finalized an agreement to
build a petrochemical complex on Saudi Arabia's Persian Gulf coast that will
further the kingdom's downstream expansion as it seeks more outlets for its
The project, first announced in April,
will be located next to the Satorp refinery in
Jubail, a joint venture between the two companies, and is due to start up in
Aramco Total Refining and Petrochemical
At a signing ceremony for a $5 billion joint development
agreement, which was livestreamed, Total CEO Patrick Pouyanne said the
aim is to raise Satorp's capacity from 440,000 b/d to 480,000 b/d, though he did
not give a timeframe.
"There is a large growth of demand in Asia and emerging countries and also in
Saudi Arabia and the Middle East, and we want to meet the demand of all these
populations," Pouyanne said.
Saudi Aramco will have a 62.5% stake in the project and
Total will hold 37.5%. The facility will include a mixed-feed cracker
that will process 50% ethane and refinery off-gas, to
produce 1.5 million mt/year of ethylene.
It will also provide feedstock for other petrochemical plants in Jubail, the
Aramco has been investing heavily in its downstream sector, with plans to raise
its global refinery capacity to between 8 million and 10 million b/d, from 5.4
million b/d currently.
The state-owned company is in the process of acquiring Saudi petrochemicals
producer Sabic, which has delayed Aramco's long-mooted plans for a public
listing of shares.
"Satorp's second-phase expansion represents a significant value addition in
Saudi Aramco's downstream strategy to maximize the full value of our vast
resources portfolio and position the kingdom as a chemicals manufacturing and
exports hub, supporting economic growth and diversification as part of Vision
2030," Aramco CEO Amin Nasser said in a statement.
During the official
visit to Paris by Crown Prince of Saudi
Arabia, HRH Mohammed bin Salman, Saudi
Aramco and Total signed a memorandum of
understanding to build a giant petrochemical
complex in Jubail, Saudi Arabia.
will be integrated
downstream of the SATORP refinery, a
joint venture between
Saudi Aramco (62,5%) and Total (37,5%) in
Jubail, in a move designed to fully
exploit operational synergies. This
world-class refinery, whose capacity
increased from 400,000-barrel-per-day at its
start-up in 2014 to 440,000-barrel-per-day
today, is recognized as being one of the
most efficient in the world.
next to the SATORP refinery in the same
industrial area, the complex will comprise a
world-size mixed-feed steam cracker (50%
ethane and refinery off-gas) with a capacity
of 1.5 million tons per year of ethylene and
related high-added-value petrochemical
units. The project will represent an
investment of around $5 billion. The
two partners are planning to start the
front-end engineering and design (FEED) in
the third quarter of 2018.
cracker will feed other petrochemical and
specialty chemical plants representing an
overall amount of $4 billion investment by
third party investors.
$9 billion will be invested, creating 8,000
local direct and indirect jobs. The project
will produce more than 2.7 million metric
tons of high value chemicals.
agreement deepens the exemplary relationship
enjoyed by our two companies over many
decades. It is one that has evolved from a
standard buyer-seller arrangement to one
imbued with common interests to further
develop and diversify our businesses,“
commented Amin H. Nasser, President and
Chief Executive Officer of Saudi Aramco.
“Our joint venture SATORP is a remarkably
successful model of industry partnership and
we are keen to build on this success to
further underpin Saudi Aramco’s strategy to
expand its capacity in the chemicals sector
project illustrates our strategy of
maximizing the integration of our large
refining and petrochemical platforms and of
expanding our petrochemical operations from
low-cost feedstock, to take advantage of the
fast growing Asian polymer market,"
commented Patrick Pouyanné, Chairman and CEO
of Total. “Furthermore, this project will
enable us to strengthen our ties with Saudi
Aramco, with whom we successfully operate
our biggest and most efficient refinery in
the world. Finally, it will contribute to
the Vision 2030 of the Kingdom by creating
8,000 jobs and bringing in new
Saudi Aramco, Raytheon in deal to set
up cybersecurity JV
State oil giant Saudi Aramco said it has
signed an agreement with global technology and innovation leader
Raytheon Company to set up a joint venture
aimed at providing best-in-class cybersecurity
services across the region.
Raytheon Company is a specialist in
defence, civil government and cybersecurity solutions with headquarters
based in Masschussets, US. The company boasts sales of $25 billion and
64,000-strong work force as of 2017.
The joint venture company, which is
being established with the help of Raytheon's Saudi subsidiary, will
market and provide integrated defensive cybersecurity software and
hardware capabilities, and perform research
and development activities, said a statement from Saudi Aramco.
The JV will help increase the
cybersecurity protections available to the Saudi oil major besides its
suppliers, customers and affiliates. It will also help build world-class
cyber capabilities in Saudi Arabia and the region, it stated.
Saudi Aramco's senior VP for finance,
strategy and development Khalid H. Al Dabbagh said: "We are excited
about the joint venture which will support the kingdom’s Vision 2030 by
creating highly skilled jobs for Saudis in the cybersecurity sector and
will support the foundation for the country’s economic development."
Demand for cybersecurity services is
expected to grow as companies move further into the digital space and
embrace technologies such as Internet of Things and big data, he
"The partnership with Raytheon will help
strengthen cybersecurity and enhance its infrastructure in Saudi Arabia
and the broader region," he added.
“Cybersecurity is critical to national
and global security,” remarked Dave Wajsgras, the president of Raytheon
Intelligence, Information and Services.
"This MoU is an important step in
creating a joint venture that we see becoming the cornerstone of
cybersecurity defenses in the region," he added.
With a history of innovation spanning 96
years, Raytheon provides state-of-the-art electronics, mission systems
integration, C5ITM products and services, sensing, effects, and mission
support for customers in more than 80 countries.-TradeArabia
March 8, 2019
SABIC Names Amco Polymers, LLC As A Distribution
Partner In North America
As part of its strategy to foster the additional growth of its Specialties
business, and to provide outstanding service to its customers, SABIC has named
Amco Polymers, LLC as a third distribution partner
in North America, providing SABIC customers with specialty engineering
thermoplastics and related services in the United States, Canada and Mexico.
Amco Polymers joins Nexeo Solutions, Inc. and
Chase Plastic Services, Inc. as authorized
distributors of SABIC’s complete portfolio of specialty materials, including
NORYL™ resins (polyphenylene ether-based materials), ULTEM™ resins (polyetherimide
materials), LNP™ compounds and the full range of polycarbonate-based
“We are delighted to welcome Amco Polymers to the team, as we seek to further
expand our ability to deliver high-performance solutions, along with outstanding
service, to our Specialties customers in North America,” said Cathie Hess,
director, Customer Fulfillment, SABIC. “Amco Polymers’ extensive knowledge of
specialty plastics, together with their application development expertise, and a
culture focused on delivering ‘peace of mind’ to their customers make Amco
Polymers an excellent fit with SABIC and, most importantly, our customers.”
In addition, Hess noted that Amco Polymers’ strong solution development mindset,
coupled with technical expertise, particularly in industries of focus for
SABIC’s Specialties business, were critical factors in the decision to add Amco
Polymers as a distribution partner.
Amco Polymers has represented SABIC’s Petrochemicals
business since 2014, and will continue to provide SABIC’s portfolio of
filled polypropylene materials, in addition to now distributing SABIC’s
portfolio of specialty materials.
“We are excited to establish a partnership with SABIC’s Specialties business and
promote products that are the hallmark of our industry,” said Kevin Wettstein,
vice president and general manager of Amco Polymers. “Customers need suppliers
who help them innovate and compete. They need flexibility and reliability to
help them navigate ever-changing demands. Amco Polymers is committed to
providing solutions that help to accelerate our customers’ growth and adding
SABIC’s specialties materials to our portfolio further strengthens our ability
to do just that.”
Amco Polymers is headquartered in Orlando, Fla., and has a network of more than
200 distribution centers and warehouses in the United States, Mexico and Canada.
Their representatives will begin serving SABIC customers during Q1 2019, with a
primary focus on initial introductions and orientation to programs in progress
with select SABIC customers. Amco Polymers representatives will also have access
to the full range of SABIC’s global application design and testing resources to
support their relationships with SABIC customers.