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Aramco

当初のNatural Gas Initiative   Natural Gas Initiative

その後の経緯

歴史と現状   Kingdom's Gas Development: Saudi Aramco's Role  

 


Gas Operations Latest Developments          その後の経緯
http://www.saudiaramco.com/

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 Ventures.

Core Venture 1 includes ethane and NGL recovery from the Haradh and 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 international level."

The three CVs cover an area of 440,000 square kilometers, making it the world
s largest area for hydrocarbon investment. Reviewing the Kingdoms 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.


IEEJ2003 4 月掲載

http://eneken.ieej.or.jp/trend/pdf/saudi030327.pdf

 現在、複数の外国企業との間で天然ガス開発及び利用プロジェクトの最終交渉を行っている(ガス・イニシアチブ)。ガス・イニシアチブはコアベンチャーと呼ばれる3件のプロジェクトで構成される。
 各プロジェクトの概要は以下のとおり。

表1 サウジアラビアのガスプロジェクト

プロジェクト              参加企業(権益)                 : 概要
コアベンチャーNo.1
(南ガワール地域開発)
エクソンモービル*(35%)
BP(25%)
RD シェル(25%)
フィリップス(15%)
投資金額120-160 億ドル。
Haradh ガス田の開発、ルブアルハリ地域の探鉱、ガス生産・処理プラント、パイプライン、発電・淡水化・
石化プラント
コアベンチャーNo.2
(紅海地域開発)
エクソンモービル*(60%)
オキシデンタル(20%)
マラソン(20%)
投資金額30-50 億ドル。
Midyan/Bargan ガス田の開発、ヤンブーへのパイプライン、発電・淡水化・
石化プラント
コアベンチャーNo.3
(シャイバ地域開発)
RD シェル*(40%)
トタールフィナエルフ(30%)
コノコ(30%)
投資金額50 億ドル。
Shaybah/Kidan ガス田の開発、南ガワ-ルのガス処理プラントまでのパイプライン、発電・淡水化・
石化プラント

                  * プロジェクトリーダー


場所

 
   
   天然ガス  natural gas

天然に地下から産出し,地表条件では気状を成す物質。
原油と別にガスだけ産出するものをnon-associated gas又はガス井ガス(gas-well gas)という。

サウジ詳細地図


その後の状況
サウジ側とメジャー側の意見の相違
     
2003/1         CV1 中止
     
2003/6   CV2 中止
     
2003/7
2003/12
  CV3を変更(上流だけ)、Shell, TotalとJV
Aramco,Shell,Total South rub Al Khai Company設立
     
2004/3   アラムコがロシア、中国、伊・西各社とRub al-Khali開発でそれぞれJV設立

Gulf News 2003/7/6

New Saudi gas initiatives need to be attractive
http://www.gulfnews.com/Articles/print.asp?ArticleID=91952

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 reportedly intend 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.

Differences
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 gas.

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 of gas.

Setback
In January and as part of moves to avoid collapse of the entire deal, t
he 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.

→ CV3を変更(当初は下流の石化まで→上流だけ)
    Aramco,Shell,Total South rub Al Khai Company設立


Kingdom's Gas Development: Saudi Aramco's Role

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 Kingdoms gas program and our commitment to meet future growth in gas demand that will maximize the Kingdom benefits.
Let me begin with a brief history of the Saudi Gas Program development.

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 continue
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 exclusively.
This is in addition to major expansions in Shedgum and Uthmaniyah Gas Plants.

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 as fuel.
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 Petrochemicals.
Saudi Aramco will continue to expand gas facilities as demand occurs.

The Kingdoms gas strategy also envisioned inviting foreign companies to participate in the Kingdoms gas sector. The strategic driver for the governments 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 Rubal-Khali basin include Shell, Total,
Lukoil, Sinopec, ENI and Repsol along with Saudi Aramco as indicated on the slide.
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 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.

In addition, Saudi Aramco will assume other broader responsibilities including:
1. The operation of the Master Gas System,
2. The role of Gas aggregator, i.e., buying gas from the joint ventures, consolidating with own supply, transportation and distribution of gas to customers
3. And, 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.

In summary,
The master Gas system has served as the cornerstone of the Kingdom
s industrialization 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 Kingdoms economic well being and those of our partners.

 


2003/7/17

Shell, Total strike Saudi gas deal                    背景
http://www.pipelinedubai.com/press/pr_0818.htm

The Royal 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.


2004/4 Shell 

Shell and Saudi Aramco join Total in the South rub Al Khali Company
http://www.shell-me.com/english/apr04/profiles2.htm

"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 Limited (SRAK).

(Natural Gas ) Initiative was to span both upstream and downstream operations.

Unfortunately, it became clear that these 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."

http://www.shell-me.com/english/apr04/profiles1.htm

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 cent shareholding.


2004/3/7 AP

Foreign firms move into Saudi
http://www.finance24.co.za/Finance/Companies/0,6778,1518-24_1494720,00.html

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
http://www.exxonmobil.com/Corporate/Newsroom/Newsreleases/Corp_xom_nr_180501.asp

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.

ExxonMobil 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.

Core Venture 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.

Core Venture 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.


2008/5/14 Saudi Aramco

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 day 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 refinerys production.


May 16, 2008 Saudi Aramco

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 up in 2013.


ConocoPhillips and Saudi Aramco are planning to form a joint-venture company,
with equal interests to own and operate the proposed new refinery. Subject to required regulatory approvals, the parties plan to offer an interest in the refinery to the Saudi public.


May 25, 2008 Reuters

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.

About
$70 billion 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 Chemical.


2008/7/12 Saudi Aramco

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 Dhahran.

Under this agreement,
SABIC Shenzhen Trading Company Ltd will market Saudi Aramco Sino Company Ltds 25 percent share of polyolefin products produced by the Fujian Refining and Petrochemicals Company of the Peoples 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 annually.



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.


2008/11/6 Conoco

Saudi Aramco and ConocoPhillips Delay Yanbu Project

The Saudi 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.

ConocoPhillips 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.

Although the 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. Jumah, 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

Saudi Aramco Total Refining and Petrochemical Company (SATORP) finalized the awarding plan for  Engineering, Procurement and Construction (EPC) contracts that constitute  the thirteen different process packages of their Jubail joint venture refinery, 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.

The full-conversion 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 polymer-grade propylene.

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 Agreementwas 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 will ultimately 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 Products

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 and plastics.

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.


2009/11/8 Thomson Reuters

Saudi to 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 on Sunday.
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.

Saudi Aramco 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.

"This 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 some industries."

The
Wasit 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 the project.

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 economic boom.

Saudi Arabia is experiencing annual gas demand growth of 7 percent.

Supplies from this gas plant will
not be used as feedstock 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 year.

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 Council

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 Jubail. The 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 last week.
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 petrochemical products.
"The complex would probably be as big as PetroRabigh," he said.
"At least five plants have been cancelled," a second source said.
"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 initial complex.

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 added.
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 Jim Marshall)


March 16, 2011 Saudi Aramco 

MOU Signed for Red Sea Refining Partnership

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 domestic markets.
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 Companys 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 demand.

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 Aramcos largest crude oil lifters.

Fujian Refining & Petrochemical Company Limited
   福建聯合石油化工

 出資:ExxonMobil China Petroleum and Petrochemical Company Limited 25%
    Saudi Aramco Sino Company Limited  25% 
    
中国側 50% Fujian Petrochemical Company Limited
                 (Sinopec 50/Fujian Government 50
 商業生産:
2008

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 producer.

This 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.

Sinopec 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 Chinas energy supplysaid Su Shulin, President, Sinopec.

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 operations.

The project is a new
grassrootsrefinery at Yanbuthat covers about 5.2 million square meters. It is scheduled to be operational in 2014.

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 www.sinopecgroup.com


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 decision soon.

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 September, 2011.

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 in 2012.

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 plant.

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 Petrolimex.
 


2012/2/18  Saudi Aramco

Memorandum of Understanding signed with PT Pertamina

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 analysis.


2012/3/8 SaudiGazette

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 year-end.
“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 year.”
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 said.
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 exchange.
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 reserves.


2012/10/21 Aramco

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 Saudi Arabia.

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 mega-project.

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 plant

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 said.

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.

Jizan Economic City

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 Africa.

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.

  Steel Complex

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 Complex

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.

Silicon Processing
Pharmaceuticals
Food Industries
Primary Construction Materials
Petrochemical Industries
Plastic Industries
Metal Fabrication and Manufacturing
Automotive Spare Parts

Human Resources and Business Development Zone

Residential Areas and Seafront District


2013/2/5  Platts

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 Tuesday.

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 holds 37.5%.

"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.
 

* 合計するとPX能力は4600千トンとなり、文中の2600千トンと異なる。
   他のソースでは、
    Rabigh  paraxylene (PX) plant of 800,000-850,000 tonnes/year and a benzene unit with a capacity of 200,000-400,000 tonnes/year.
    Ras Tanur   400,000 tons/year benzene and 460,000 tons/year of paraxylene.

  立地 出資 Refinery      千トン start
Para
   Xylene
Benzene
Saudi Aramco Total Refinery
and Petrochemical Co.
(Satorp)
Jubail Aramco 62.5%
Total    37.5%
400,000 b/d 700 140 2013/3Q
Yanbu Aramco Sinopec
Refining Co.
(Yasref)
Yanbu Aramco 62.5%
Sinopec 37.5%
400,000 b/d 700 140 2014
Petro Rabigh (Phase 2) Rabigh Aramco    37.5%
住友化学 37.5%
- 1,350 170 2015 end
Saudi Aramco Ras Tanur Aramco 525,000 b/d 1,200 285 2016 end
Saudi Aramco Jazan Aramco 400,000 b/d 650 85 2017
合計       4,600 820  

 

--------------

2012/3/5  ICB

Saudi Aramco focuses on aromatics in its petrochemicals push

Saudi Aramco 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, state-owned 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 Chemical, named 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 petrochemical project

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.

2014年09月08日 化学工業日報
 
PTT 越製油所に応札 日系も競合

タイPTTは、ベトナムで石油精製・石油化学コンプレックス建設に向け入札に参加する。関係者によると、近くベトナム政府に総額200億米ドル(約2兆1000億円)の事業計画書を提出する計画。日量40万バーレル能力の製油所のほか、年300万トン能力のオレフィンを中心としたナフサクラッカー、また年200万トンの芳香族コンプレックスを建設するもので、日本、韓国、中国、中東のエネルギー企業も入札に参加する見通しだ。当初計画に比べ、より石化事業の比重を高めており、石油精製との一体化により事業全体の付加価値を一段と引き上げる戦略とみられる。

 

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2012年12月

タイPTT、ベトナムに大規模製油所の建設を検討

タイ国営PTT(タイ石油公社)が、ベトナムに大型の製油所・石油化学コンプレックスの建設を検討していると各メディアから報道された。

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。


2013/6/11 出光興産と三井化学、ベトナムの
Nghi Son 製油所・石油化学コンプレックスへの最終投資決定 


21 May 2016 

Saudi Aramco, SABIC say no plans to merge petrochems

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.


2016-08-31 ChemChina

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 engineering plastics.

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.

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About NICDP:

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 skills development.

 


2016/12/22  

Saudi Aramco, Indonesia’s Pertamina Sign Refinery Expansion Agreement

 
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.

Pertamina Refinery Capacity

NO
  Refining Unit
  Capacity
( MBSD )
増設後
1
  RU II Dumai
170.0
 
2
  RU III Plaju
133.7
 
3
  RU IV Cilacap
348.0

400.0

4
  RU V Balikpapan
260.0
 
5
  RU VI Balongan
125.0
 
6
  RU VII Kasim
10.0
 

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 raw material.

 

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.