当初のNatural Gas Initiative   Natural Gas Initiative


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


Gas Operations Latest Developments          その後の経緯

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



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
RD シェル(25%)
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・
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・
RD シェル*(40%)
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・

                  * プロジェクトリーダー


   天然ガス  natural gas

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。


2003/1         CV1 中止
2003/6   CV2 中止
  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

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.

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.

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.



Shell, Total strike Saudi gas deal                    背景

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

"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."


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

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.

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.

$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."

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

 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

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
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。
    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
Saudi Aramco Total Refinery
and Petrochemical Co.
Jubail Aramco 62.5%
Total    37.5%
400,000 b/d 700 140 2013/3Q
Yanbu Aramco Sinopec
Refining Co.
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







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.

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.



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

  Refining Unit
( 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 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.


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 jobs.

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 optimization

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 funding.

MOU with Honeywell – New Partnership Agreement In Support Of Saudi Arabia’s IKTVA Program

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.

2016/12/1 日経






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 its affiliates.

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 prices.

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 said.

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 running.

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 sources said.

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

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 discussions.

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 ambitions.

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.  の創業とCEO就任を発表しました。Alphabet 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。

Alphabet の創業とGoogleの子会社化は、8月10日付けの投資家向け発表のなかで明らかにされました。ラリー・ペイジによれば、新会社 Alphabet は Googleを含む「複数の会社の集合」。アルファベットのホームページには「GはGoogleのG」の言葉とともに見慣れた「G」ロゴが、そして複数のアルファベットが並びます。


ペイジによるGoogleの投資家向け発表文によれば、アルファベット設立の目的は現在 Google 傘下にあるさまざまなビジネスを Google から切り離し対等な立場でアルファベット傘下に置くことで、透明性の向上、事業ごとにCEOを置き経営判断の強化を計ることとされています。



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 Wing、血糖レベルを検出するコンタクトレンズなど健康・医療事業の Life 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 のようにさまざまな会社の集合を示すこと、また人類にとって最大のイノベーションであった言語の象徴であり、Google検索のインデックス化の核であるとともに、投資用語で期待を上回るリターンを示す「Alpha」と「Bet」(賭け)をつなげた言葉も意味しているとのこと。


April 11, 2018
2018/3/2 サウジアラムコのインド進出計画

Saudi Aramco and Indian consortium “RRPCL” sign MoU to develop Ratnagiri mega refinery and petrochemicals complex on India’s west coast

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 growth region.

“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   

  Saudi Aramco and Indian consortium “RRPCL” sign MoU to develop Ratnagiri mega refinery and petrochemicals complex on India’s west coast

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 Reuters.

“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 project.

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 company.

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 Nagwekar.

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 matter.

“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 statements.


15 Aug 2018 

Saudi Aramco 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 currently.

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.



2009年618日にTotal とのJVSaudi Aramco Total Refining and Petrochemical Company(SATORP) の工事の発注先を決めた。

日産40万バレルのワールドクラスの製油所をJubail に建設し、Arabian Heavy 原油を精製して、高品質の石油製品を製造する。

2009/6/22 Saudi Aramco、製油所建設を再開


April 10, 2018  

Saudi Arabia: Saudi Aramco and Total Sign a Memorandum of Understanding to Build a Giant Petrochemical Complex
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.

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 2030.”

“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 high-added-value technologies.” 

Motiva Enterprises

April 8, 2018

Aramco takes step to integrating petrochems into United States' biggest refinery

Saudi Aramco took the first steps to integrating a petrochemicals business into the United States’ biggest oil refinery, which is operated by its subsidiary Motiva Enterprises.

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 plastics.

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                         2018/8/9 Saudi Aramco、SABICの株式購入と上場問題 

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 source added.

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 official, said.

“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 crude.

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 2024.

JubailにあるSATORP(フランスのTotal とのJVのSaudi Aramco Total Refining and Petrochemical )の製油所

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 companies said.

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.

April 10, 2018

Saudi Arabia: Saudi Aramco and Total Sign a Memorandum of Understanding to Build a Giant Petrochemical Complex

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.

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 2030.”

“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 high-added-value technologies.” 



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 stated. 
"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 News Service


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 high-performance copolymers.

“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.

March 27, 2019

Saudi Aramco acquires $69B stake in petrochemical firm SABIC




2018/8/9 Saudi Aramco、SABICの株式購入と上場問題 

Saudi Aramco signed a $69.1 billion deal Wednesday to purchase a 70 percent share in petrochemical firm SABIC, helping pump capital into the kingdom's sovereign wealth fund that the crown prince oversees.

Aramco said it acquired the majority stake in SABIC from the Public Investment Fund (PIF) in a private transaction, leaving the remaining 30 percent of SABIC's publicly traded shares on the Saudi stock exchanged untouched.

SABIC's market capitalization is estimated at around $100 billion. The petrochemical firm is one of the world's largest, operating in more than 50 countries with 34,000 employees.

The acquisition will help boost Aramco's downstream operations. Aramco currently produces 17 million tons of petrochemicals per year compared to SABIC, which produces 62 million tons.

"This transaction is a major step in accelerating Saudi Aramco's transformative downstream growth strategy of integrated refining and petrochemicals," Aramco CEO Amin Nasser said in a prepared statement.

The national Saudi oil firm aims to double its refining capacity to up to 10 million barrels per day by 2030, with 2 to 3 million barrels per day converted into petrochemicals, which are used to produce plastic and synthetic rubber.

The sale comes amid delays of an initial public offering of Aramco shares on an international exchange, which Crown Prince Mohammed bin Salman had touted as a way to raise capital for the kingdom's sovereign wealth fund.

Wednesday's deal provides another way to channel funds to the Public Investment Fund for the crown prince's projects in Saudi Arabia aimed at diversifying the economy away from reliance on oil exports for revenue.

PIF Managing Director Yasir Al-Rumayyan described the sale as a "win-win-win transaction" for all three major Saudi entities, but for the fund specifically he said it will "unlock significant capital" for continued long-term investments.

The fund has a $3.5 billion investment in ride hailing service Uber and has partnered with Japan's Softbank to invest in the technology sector. PIF is also behind large-scale projects like the building of an expansive recreational and entertainment space near the capital, Riyadh, and a transformational tourism project along the Red Sea.


17 April, 2019

Saudi Aramco may ink one of India’s biggest inbound deals with Reliance refining stake

State oil giant Saudi Aramco, the world's biggest oil producer, is in talks to buy a minority stake in the refining and petrochemicals businesses of India's Reliance Industries Ltd, sources familiar with the matter said on Wednesday.

The Times of India reported earlier that Aramco was in talks to buy a stake of up to 25 percent, which could be worth around $10-15 billion, valuing the Indian company's refining and petrochemicals businesses at some $55-60 billion.

Aramco's discussions with Reliance were "serious", one source said. Another source said talks with Reliance were so far for a 25 percent stake.

Aramco and Reliance declined to comment.

Reliance, controlled by Asia's richest man, Mukesh Ambani, is India's biggest refining and petrochemicals company and runs a 1.4 million barrels per day refining complex at Jamnagar in Gujarat. It plans to expand capacity to 2 million bpd by 2030, according to plans shared with the Indian government.

Aramco is expanding its refining and petrochemical business globally by signing new deals and boosting the capacity of its existing plants.

Last year, Aramco and the United Arab Emirates' national oil company ADNOC teamed up with state-run Indian refiners in a plan to build a 1.2 million bpd refinery and petrochemical project in Maharashtra state.

2018/7/7 アブダビ国営石油、Aramcoと組み、インドの石油精製・石油化学事業に出資

However, the planned refinery faces delays, as thousands of farmers have refused to surrender land for it and the Maharashtra government is looking to move the plant's location.

Saudi Crown Prince Mohammed bin Salman visited India in February and said then that he expected investment opportunities worth more than $100 billion there over the next two years.

Ambani has travelled to Saudi Arabia at least twice since December, discussing joint investment among other issues with Aramco's chief executive, Amin Nasser.

Saudi Aramco to acquire stake in South Korean Hyundai Oilbank

The Saudi Arabian Oil Company (Saudi Aramco) and Hyundai Heavy Industries Holdings today announced that they have reached an agreement for Saudi Aramco’s subsidiary,  Aramco Overseas Company B.V (AOC), to purchase a 17% stake in South Korea's Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings. The investment is valued at approximately $ 1.25 billion. AOC’s investment in South Korea’s Hyundai Oilbank will support Saudi Aramco’s crude oil placement strategy by providing a dedicated outlet for Arabian crude oil to South Korea.

Abdulaziz Al-Judaimi, Saudi Aramco’s Senior Vice President of Downstream, said: “Saudi Aramco continues to strengthen its position in the downstream sector. This acquisition demonstrates our investment in the highly complex refining sector in Asia, and continuous commitment to the region’s energy security and development.”

Judaimi added : The investment supports Saudi Aramco’s broader downstream growth strategy, as well as providing long term crude oil placement supply options and product offtakes as part of our trading business.

Hyundai Oilbank is a private oil refining company established in 1964. The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day. The business portfolio of Hyundai Oilbank and its 5 subsidiaries includes oil refining, base oil, petrochemicals, and a network of gas stations. 

AOC is a subsidiary of Saudi Aramco. It provides support services to Saudi Aramco and, through its investments and joint ventures, forms an integral part of the global Saudi Aramco oil, gas, and chemicals enterprise.


April 21, 2019 

Aramco buys 50% stake in Sasref refinery for $631m

Aramco agreed to buy Anglo-Dutch major Shell’s 50 per cent stake in a refining joint venture in Jubail for $631 million, taking complete ownership of the facility.

Saudi Aramco Shell Refinery Co.(SASREF)  Aramco 50% / Shell 50%  → Aramco 100%

Al-Jubail Industrial City で稼動中の企業の概要は以下の通り。

Saudi Aramco, the world’s biggest oil exporting company has been making strategic shifts downstream, as it looks to sell more products, especially in the growing markets of Asia.

The company has looked to strengthen its downstream portfolio – which refers to the refining and chemicals segments of the energy value chain – and recently agreed to buy 70 per cent stake in Sabic, the region’s biggest chemicals company.

"The partnership with Shell has led to a strong record of performance and delivery of refined products," Abdulaziz Al Judaimi, Saudi Aramco’s senior vice president of downstream said in a statement on Sunday. "Saudi Aramco will take full ownership and integrate the refinery into its growing downstream portfolio.”

The Aramco-Shell transaction is expected to be completed later this year, pending regulatory approval. The Sasref refinery at Jubail has a capacity of 305,000 barrels per day, with liquefied petroleum gas, naphtha, kerosene, diesel, fuel oil and sulphur being its main products.

Last week, Saudi Aramco reached an agreement with with Hyundai to acquire a 17 per cent stake in Oilbank, one of the South Korean company’s subsidiaries, in a transaction valued at $1.25 billion.

2019/1/30   Saudi Aramco、韓国のHyundai Oilbank に出資

The Saudi state producer will invest through the Aramco Overseas Company. The investment will support Aramco’s crude placement strategy by allowing for a dedicated outlet for Arabian crude in South Korea, one of the biggest buyers of Middle Eastern crude.

Bloomberg May 7, 2019                

Saudi Aramco Is Said to Consider Shale Investment With Equinor

Saudi Aramco is weighing a potential investment in Norwegian oil company Equinor ASA’s U.S. shale operations in what could be the energy giant’s first ever overseas venture for gas exploration, according to people familiar with the matter.

March 15, 2018   Statoil to change name to Equinor

The board of directors of Statoil proposes to change the name of the company to Equinor. The name change supports the company’s strategy and development as a broad energy company.
The name Equinor is formed by combining “equi”, the starting point for words like equal, equality and equilibrium, and “nor”,  signalling a company proud of its Norwegian origin, and who wants to use this actively in its positioning.

 67 percent owned by the Norwegian government

The state-run company, known officially as Saudi Arabian Oil Co., is considering investing in Equinor’s Marcellus shale operations through a joint venture or by buying a stake, the people said, asking not to be identified because the talks are private. Aramco may also invest with other oil companies to gain access to U.S. shale gas, the people said.

No final decisions have been made and the deliberations between Aramco and Equinor are at an early stage, they said. Representatives for Aramco and Equinor declined to comment.

Aramco is expanding its search for gas to help reduce the nation’s reliance on sales of crude. Saudi Arabia also wants to use gas as fuel in the kingdom’s power stations and for the production of petrochemicals, a high-priority industry for the government in its strategy to diversify the economy. The country is looking for natural gas supplies in the U.S., Russia’s Arctic and Australia both to supply global markets and meet demand at home, Saudi Energy Minister Khalid Al-Falih said this year.

A partnership with Aramco will give the Norwegian company more firepower to expand in the U.S., the people said. Equinor has been chasing deals for natural gas-rich acreage to add to its large position in the Appalachian region, Al Cook, the company’s head of strategy, said in an interview in March. The oil firm is also considering selling all or some of its operations in the Eagle Ford shale in the U.S., people familiar with the matter in March.

Still, Equinor, which is 67 percent owned by the Norwegian government, would have to overcome political unease with the kingdom’s human rights record. In November, the country said it would halt any new export licenses for sales of defense material to Saudi Arabia after already banning exports of arms and ammunition.

Aramco plans to double its total gas production to 23 billion cubic feet daily in the coming decade, Chief Executive Officer Amin Nasser has said. The company’s trading unit sold its first liquefied natural gas cargo last month in the latest example of Aramco’s effort to expand outside its historical business of pumping and selling crude.


June 10, 2019          

Falih: Saudi Aramco extends offer to buy stake in Arctic LNG 2

Saudi Energy Minister Khalid al-Falih said Saudi Aramco had extended its offer to join Russian gas producer Novatek’s Arctic LNG 2 project and that he hoped Novatek would agree to it, TASS news agency reported on Monday.

Falih told TASS in an interview Saudi Aramco was also studying Russian energy giants Rosneft and Gazprom’s LNG projects and that Saudi Arabia might be interested in investing in Russian petrochemical company Sibur.


ロシアのガス大手Novatekは4月25日、北極圏で計画するArctic LNG事業で中国企業2社から2割の出資を受けることで合意したと発表した。

日本経済新聞が昨年12月22日に、三井物産が出資を協議していることが分かったと報じた。ロイターも同日、三井物産、ロシア政府出資のファンドのRussian Direct Investment Fund (RDIF)及びサウジのSaudi Aramcoが出資交渉をしていると報じた。三菱商事も交渉しているとみられる。

Total が10%を出資しており、今回中国2社の計20%の出資が決まり、残るのは10%だけとなった。

2019/4/30 北海LNG計画に中国2社が参加 


2019/6/11 日経



残るのは10%だけで、Aramco か三井物産かとなると、Aramcoが選ばれる可能性が強い。もっと早く決めるべきであった。

Jun 22, 2019 

New site identified for Saudi Aramco-ADNOC refinery in India

The Indian government has identified a new site for the $44bn oil refinery that is being built by three state-run firms along with Saudi Aramco and ADNOC, according to Maharashtra chief minister Devendra Fadnavis.

The new site in Maharashtra is in Raigad district, which is approximately 100km south of Mumbai, India's financial capital.

The refinery was initially meant to be built at Nanar, a village in the Ratnagiri district of Maharashtra, about 400km south of Mumbai. Refining & Petrochemicals Middle East reported that a group of farmers refused to surrender their land as the region is famous for Alphonso mangoes, cashew farms and fishing colonies. Because of the protests, the regional government suspended the land acquisition.

Together, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation own 50% stake in the Ratnagiri Refinery and Petrochemicals Ltd, the company that is building the refinery. The remaining stake is owned equally by Saudi Aramco and ADNOC.

The 1.2mbpd refinery and integrated petrochemical project will provide India steady fuel supply. Saudi Arabia’s and UAE's interest in the project is to ensure regular buyers for their oil.

City and Industrial Development Corporation plans to acquire land from 40 villages in Raigad for the refinery.

Saudi Aramco と Abu Dhabi National Oil Company (Adnoc) は2018年6月25日、インド西海岸での440億ドルの精油所建設計画に共同で投資する契約に調印したと発表した。

計画は、インドの西部 Maharashtra州Ratnagiri に大規模石油精製・石油化学コンプレックスを建設するもの。

インド国営の石油会社3社が計画しているもので、第1期 40 百万トン、第2期 20 百万トンで合計60 百万トン/年(日産120万バレル)の製油所を建設する。石油、ディーゼル、LPG、航空燃料、石化原料を生産する計画で、2022年のスタートを目指している。


2018/7/7 アブダビ国営石油、Aramcoと組み、インドの石油精製・石油化学事業に出資 

August 12, 2019

Saudi Aramco and Reliance Industries sign a non-binding letter of intent to acquire a 20% stake in the Oil-to-Chemicals (O2C) division of Reliance

Saudi Aramco and Reliance Industries Limited (RIL) today have agreed to a non-binding Letter of Intent (“LOI”) regarding a proposed investment in the Oil to Chemicals (O2C) division comprising the Refining, Petrochemicals and fuels marketing businesses of RIL.

Saudi Aramco’s potential 20% stake is based upon an Enterprise Value of US$ 75 billion for the O2C division. This would be one of the largest foreign investments ever made in India.

Saudi Aramco and RIL have a long-standing crude oil supply relationship of over 25 years.

Saudi Aramco is the world’s largest and lowest cost-per-barrel producer of crude oil, is geographically close to India, and offers a wide range of crude supply options.

To date it has supplied approximately 2 billion barrels of crude oil for processing at RIL’s refinery at Jamnagar. RIL’s Jamnagar refinery is the largest and most complex refinery in the world, with deep integration of refining and petrochemical activities across multiple manufacturing facilities.

The proposed investment would result in Saudi Aramco supplying 500 KBPD of Arabian crude oil to the Jamnagar refinery on a longterm basis.

Mr. Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited said “I am truly delighted to welcome Saudi Aramco, one of the largest business enterprises in the world, as a potential investor in our Oil to Chemicals division. We have a long-standing crude oil relationship with Saudi Aramco and we would be happy to see this further strengthened with this investment. Saudi Aramco ’s interest is a strong endorsement of the quality of our assets and operations as well as of the potential of India.”

Under the non-binding LOI, the proposed investment is subject to due diligence, and the executed definitive agreement will be subject to regulatory and other customary approvals. The parties will make an announcement once a definitive agreement is executed.


Yemen's Housi  attacks Aramco in Yanbu   イエメンのフーシ派

 Yemen’s Houthis said on Friday they had struck facilities of Saudi oil giant Aramco in the Red Sea port of Yanbu with twelve drones and three rockets.

The drones and rockets "targeted Aramco and other sensitive targets in Yanbu and hit them with high precision," Houthi military spokesman Yahya Saria said in a statement carried by the Houthis' al-Masirah TV. Saudi Aramco declined to comment on the report.

2020/2/28                                          2019/3/30 Saudi Aramco、SABIC株式の70%を取得

Mergers: Commission clears the acquisition of sole control over SABIC by Saudi Aramco

The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control over Saudi Basic Industries Corporation (“SABIC”) by the Saudi Arabian Oil Company (“Saudi Aramco"), both of Saudi Arabia.

SABIC is primarily active downstream from crude oil in the production and sale of commodity chemicals, intermediates, polymers, fertilisers and metals.

Saudi Aramco is primarily active in the upstream petroleum value chain, namely in the exploration, production, and marketing of crude oil, natural gas, LPG and fuels.

The Commission concluded that the proposed acquisition would raise no horizontal competition concerns given the companies' moderate combined market shares in relation to the various petrochemical products they supply, and the fact that a sufficient number of credible suppliers will remain active in the relevant markets.

Moreover, the Commission did not find any anti-competitive vertical effects resulting from the combination of these businesses. The transaction was examined under the normal merger review procedure.


More information is available on the Commission's competition website, in the public case register under the case number M.9410. (For more information: Arianna Podesta – Tel. +32 229 87024; Maria Tsoni – Tel.: +3 229 90526)

August 10, 2020 

Aramco Still Aiming for $15B Reliance Deal

Saudi AramcoとインドのReliance Industriesは2019年8月12日、AramcoがRelianceのOil-to-Chemicals 部門に出資する非拘束のLetter of Intent を結んだ。

Oil-to-Chemicals 部門の事業価値を750億ドル(債務込み)と想定し、これの20%を取得する。150億ドルの投資となり、外国企業によるインドへの投資の最大のものの一つとなる。

しかしインド政府は9月にDelhi High Court にRelianceによるAramcoへの株式売却を禁止することを求めて訴えた。

2020/1/4 インド政府、RelianceとAramcoの提携を阻止

 Saudi Aramco said it’s still working on a deal to buy a $15 billion stake in Reliance Industries Ltd.’s refining and chemicals business, even as lower oil prices force it to slash other investments.

Reliance’s shares fell in mid-July after Chairman Mukesh Ambani said a transaction had been delayed “due to unforeseen circumstances in the energy market and the Covid-19 situation.”

A deal with India’s Reliance would help the world’s biggest crude exporter join the ranks of the top oil refiners and chemical makers. State-owned Aramco, which bought chemical firm Saudi Basic Industries Corp. for $70 billion this year, is already a major supplier of crude to India, while Reliance sells petroleum products such as gasoline to the kingdom.

“We are still in discussion with Reliance,” Aramco Chief Executive Officer Amin Nasser said on a call with reporters on Sunday. “The work is still on. We will update our shareholders in due course.”

A deal could be finalized around the first quarter of next year, according to Deven Choksey, managing director at KR Choksey Investment Managers Pvt. in Mumbai. Aramco will win twice over, he said.

“It will get an assured consumer for its hydrocarbon resources, while becoming a 20% partner in a ready-made business of developing a value-added chain in specialty chemicals,” Choksey said.

Reliance’s stock fell 1.3% in Mumbai on Monday, paring its gain this year to 41%. Aramco rose 0.2% to 33.10 riyals in Riyadh.

Aramco reported on Sunday that second-quarter net income was down almost 75% from a year earlier. The coronavirus pandemic halted travel and business, slashing demand for crude and fuel. After the Organization of Petroleum Exporting Countries cut production, Brent prices rebounded from a low of about $16 a barrel in April to nearly $45, though they’re still down 32% this year.

Aramco’s downstream unit narrowed its loss in the second quarter. The loss before interest and taxes for the business was $344 million, compared with $866 million a year earlier.

Ambani, the world’s fourth-richest person, said last year that Aramco was set to buy a 20% stake in his company’s refining and petrochemicals business, valuing it at $75 billion.

The Reliance transaction would help Aramco reach its goal of more than doubling refining capacity to between 8 million and 10 million barrels a day. The Saudi firm had capacity of 3.6 million barrels a day at the end of last year, including wholly owned plants and stakes in joint ventures. The gross capacity of facilities in which Aramco has stakes was 6.4 million barrels daily.

The company, officially known as Saudi Arabian Oil Co., is working to start the 400,000 barrel-a-day Jazan refinery on Saudi Arabia’s southern Red Sea coast this year. It also owns the biggest refinery in the U.S. as well as plants in countries such as South Korea and Japan. It’s planning several Chinese ventures.

Reliance’s need for a cash infusion has eased in recent months. The conglomerate raised some $30 billion by attracting investments from the likes of Google and Facebook Inc. into its digital unit, Jio Platforms Ltd., and by selling shares to existing stakeholders.

Aramco signs $12.4 billion pipeline deal with EIG-led consortium

Aramco のOil Pipelineを新設のAramco Oil Pipelines Co に移す。

Aramco Oil Pipelines Co の株式の49%を124億ドルでEIG Global Energy Partnerが率いるコンソーシアムに売却、残り51%はAramcoが保有

Saudi oil giant Aramco on Friday entered into a $12.4 billion deal with a consortium of investors led by EIG Global Energy Partners that would give the investor group a 49% stake in Aramco’s pipeline assets, the two companies said.

This is the first major deal by Aramco since its listing in late 2019 when the Saudi government sold a minority stake in the firm for $29.4 billion in the world’s biggest initial public offering.

The EIG-led group signed a lease and lease-back agreement with Aramco, acquiring the equity stake in the newly formed Aramco Oil Pipelines Co, with rights to 25-years of tariff payments for oil transported through Aramco’s crude oil pipeline network, it said in a statement. Aramco will own 51% stake in the new company.

EIG is a Washington, D.C.-based investment firm that has invested more than $34 billion in energy and energy infrastructure projects around the world.

“The transaction represents a continuation of Aramco’s strategy to unlock the potential of its asset base and maximize value for its shareholders,” Aramco said in a separate statement.

Aramco will at all times retain title and operational control of, the pipeline network and will assume all operating and capital expense risk, the companies said.

The transaction will not impose any restrictions on Aramco’s actual crude oil production volumes that are subject to production decisions issued by the kingdom.

Aramco’s Chief Executive Amin Nasser said “moving forward, we will continue to explore opportunities that underpin our strategy of long-term value creation.”

The two companies did not identify the names of other investors in the consortium.

Several bidders had participated in the deal process including Apollo Global Management and New York-based Global Infrastructure Partners (GIP).

U.S. asset manager BlackRock and Canada’s Brookfield Asset Management Inc had left the race, Reuters had reported on April 6, citing sources familiar with the deal.

The pipeline deal is similar to infrastructure deals signed over the last two years by Abu Dhabi’s National Oil Co (ADNOC), which raised billions of dollars through sale-and- leaseback deals of its oil and gas pipeline assets.

Aramco stake is preparing a so-called “staple financing” for its bidders - a financing package provided by the seller that buyers can use to back their purchase, sources have told Reuters previously.

Aramco said last month it was betting on an Asian-led rebound in energy demand this year after it reported a steep slide in net profit for 2020 on Sunday and scaled back its spending plans.

Dec 7, 2021    

Saudi Aramco, BlackRock sign $15.5bn gas pipeline deal



今回の合意は石油とガスの両方で生産を増やしつつ、外資をさらに呼び込んで得られる収入を国内経済の多様化に充てるというサウジの方針の一環。アラムコは4月、石油パイプラインに関する124億ドル相当の権益を米投資会社EIG Global Energy Partnerが率いるコンソーシアムに売却している。


Aramco のOil Pipelineを新設のAramco Oil Pipelines Co に移す。

Aramco Oil Pipelines Co の株式の49%を124億ドルでEIG Global Energy Partnerが率いるコンソーシアムに売却、残り51%はAramcoが保有


今回、Aramco のGas Pipelineを新設のAramco Gas Pipelines Co に移す。

Aramco Gas Pipelines Co の株式の49%を155億ドルで BlackRock とサウジ政府系企業 Hassanaに売却、残り51%はAramcoが保有


Aramco は2022年2月23日、最終合意したと発表した。

売却先のconsortiumは、BlackRock とサウジ政府系企業 Hassana Investment Companyのほか、シンガポールのKeppel Infrastructure Trust、中国の Silk Road Fundと China Merchants Capitalを含む。


 Saudi Aramco said it has signed a $15.5 billion lease and leaseback deal for its gas pipeline network with a consortium led by BlackRock Real Assets and Hassana in its second major infrastructure deal this year.

The deal signed on Monday underscores how Aramco -- the kingdom's cash cow -- is seeking to monetise its once-untouchable assets to generate revenue for the Saudi government as it accelerates efforts to diversify the oil-reliant economy.

In June, Aramco sold a 49 percent stake in its oil pipeline business to a consortium led by US-based EIG Global Energy Partners for $12.4 billion.

Under the new deal, a newly formed subsidiary, Aramco Gas Pipelines Company, will lease usage rights in Aramco's gas pipeline network and lease them back to Aramco for a 20-year period, the Saudi oil firm said in a statement.

In return, Aramco Gas Pipelines Company will receive a tariff payable by Aramco for the gas products that flow through the network, backed by minimum commitments on throughput.

Aramco will hold a 51 percent stake in Aramco Gas Pipeline Company and sell a 49 percent stake to investors led by BlackRock and Hassana, a Saudi state-backed investment management firm.

"With gas expected to play a key role in the global transition to a more sustainable energy future, our partners will benefit from a deal tied to a world-class gas infrastructure asset," Aramco president and CEO Amin Nasser said in a statement.

"BlackRock is pleased to work with Saudi Aramco and Hassana on this landmark transaction for Saudi Arabia's infrastructure," BlackRock chairman and CEO Larry Fink said.
"Aramco and Saudi Arabia are taking meaningful, forward-looking steps to transition the Saudi economy toward renewables, clean hydrogen, and a net zero future."

Aramco, the world's biggest oil producer, has pledged to achieve net zero carbon emissions in its operations by 2050.
Saudi Arabia, one of the world's biggest polluters as well as the top oil exporter, has also pledged to achieve net zero carbon emissions by 2060.
Long seen as the kingdom's "crown jewel", Aramco and its assets were once tightly under government control and considered off-limits to outside investment.
But with the rise of de facto ruler Crown Prince Mohammed bin Salman, who is pushing to implement his "Vision 2030" reform programme, the kingdom has shown readiness to cede some control.
Aramco sold a sliver of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world's biggest initial public offering.


10 Mar 2022

Saudi Aramco makes final investment decision on Panjin liquids-to-chemicals complex in China

300,000 b/d refinery, petrochemical plant to be operational in 2024

Aramco withdrew from project in 2020 but restarted talks in Feb

Saudi Arabia has sought closer ties with China as outlet for crude


Saudi Aramco has decided to move forward with a 300,000 b/d oil refinery and petrochemical project in northeast China, the company announced March 10, further cementing its commercial ties in Asia's largest economy.

Aramco said it had taken the final investment decision to develop a liquids-to-chemicals complex under a joint venture with North Huajin Chemical Industries Group Corp. and Panjin Xincheng Industrial Group.

JV名 Huajin Aramco Petrochemical Company

Saudi Aramco は2019年2月22日、中国のコングロマリットの中国北方工業公司(Norinco)との間で、遼寧省盤錦市での石油精製・石油化学コンプレックス建設のJV設立の契約書を締結した。投資額は100億ドル以上とされる。

2019/2/26 サウジアラムコと中国2社、遼寧省で石油精製・石油化学コンビナート建設へ


Saudi Aramco, along with Norinco and Panjin Xincheng, has formed a joint venture to establish a completely consolidated refining and petrochemical complex in Panjin, China.

今回のNorth Huajin Chemical Industries Group Corp. はNorincoのHuajin Chemical unit

The project is a key element in China's petrochemical industry forward planning and the revitalization drive for the old industrial base in northeast China. It is a major project in NORINCO's drive to develop the industrial value chain, facilitating overseas oil exploration and trade, as well as growth in the petrochemical, final chemicals, and specialty chemical sectors.

The Saudi state-run company had withdrawn from the project in 2020.

"The Chinese side's understanding is that Aramco is cutting investments and does not have the funds to invest in the project currently,"

But S&P Global Commodity insights reported in September 2021 that the partners had revived negotiations.

The facility, to be built in the city of Panjin, will combine a 300,000 b/d refinery and an ethylene-based steam cracker, with Aramco supplying up to 210,000 b/d of crude oil feedstock. It is expected to be operational in 2024 and will cost some $10 billion.

"China is a cornerstone of our downstream expansion strategy in Asia and an increasingly significant driver of global chemical demand," Mohammed al-Qahtani, Aramco's senior vice president of downstream, said in a statement.

The announcement comes two days after Aramco and Sinopec said they were studying a possible capacity expansion at the 280,000 b/d Fujian refining complex, with sources telling S&P Global that an ethylene plant was likely to be added.

Saudi Arabia has in recent years sought greater access for its crude oil in China, Asia's largest economy.

Crown Prince Mohammed bin Salman made a state visit to Beijing in February 2019, where the Huajin Aramco Petrochemical Co. JV was formed to build the Panjin complex.

Saudi Arabia was China 's top crude supplier in 2021, delivering 1.76 million b/d, followed by Russia at 1.6 million b/d, according to data from China 's General Administration of Customs.



Aramco agrees to acquire Valvoline’s Global Products Business 

The Saudi Arabian Oil Company today announced the signing of an equity purchase agreement to acquire Valvoline Inc.  global products business (Valvoline Global Products )  for US$2.65 billion. The transaction is subject to certain customary adjustments set forth in the equity purchase agreement.

Valvoline Global Products is a leading worldwide independent producer and distributor of premium branded automotive, commercial and industrial lubricants, and automotive chemicals.

Aramco will benefit from VGP’s robust manufacturing and distribution network, significant R&D capabilities, strong partnerships with major OEMs, and a 150-year legacy of global brand recognition as it pursues opportunities to extend the brand globally. The strategic acquisition will complement Aramco’s line of premium branded lubricant products, optimize its global base oils production capabilities, and expand Aramco’s own R&D activities and partnerships with OEMs.

Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said: “Valvoline’s global products business fits perfectly with Aramco’s growth strategy for lubricants as it will leverage our global base oils production, contribute to our R&D capabilities and strengthen our existing relationships with OEMs. Valvoline’s brand strength and global recognition will continue to be developed and extended under Aramco’s stewardship. We are also very excited to have the outstanding people of VGP join the Aramco family as we continue to execute on our ambitious strategy.”

Following the transaction, Valvoline will focus on its market leading Retail Services business, including further enhancing its growth trajectory and world-class service model. Retail Services expects to benefit from a strong balance sheet and a clear strategy for value creation, including extending its world-class preventive auto maintenance service model to EV owners, and fleets as the car parc evolves.

“The sale of Global Products represents the successful outcome of our strategy to unlock the full, long-term value of our strong but differentiated Retail Services and Global Products businesses,” said Sam Mitchell, Valvoline CEO. “We have built two leading businesses that are well-positioned for continued success as they pursue their individual strategic priorities. We are pleased that our Global Products team will have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader.”

Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.



Aramco and TotalEnergies to Construct $11 Billion Petrochemicals Complex in Saudi Arabia

Saudi Arabian Oil Company (Aramco) and TotalEnergies have recently joined forces in a significant partnership, signing an $11 billion contract to commence the construction of a state-of-the-art petrochemicals complex in Saudi Arabia.

The joint statement, released by both companies on Saturday, unveiled their collaborative effort towards this ambitious project.

The contract, awarded for Engineering, Procurement, and Construction (EPC), marks the establishment of the “Amiral” complex. This world-scale petrochemicals facility expansion will be situated at the SATORP refinery in the Kingdom of Saudi Arabia, amplifying the country’s position in the global petrochemicals market.

The Amiral complex is expected to bolster the production capacity of the SATORP refinery and reinforce Saudi Arabia’s position as a major player in the global petrochemical sector.

The newly formed venture envisions the creation of a cutting-edge facility that will utilize the latest technologies and innovations, ensuring sustainable and efficient production processes. This aligns with the broader objectives of both companies to promote environmental sustainability and reduce carbon emissions.

The construction of the Amiral complex is set to generate substantial economic benefits, including job creation, technological advancements, and the expansion of Saudi Arabia’s petrochemical sector. The project represents a significant milestone in the collaboration between Aramco and TotalEnergies, further solidifying their long-standing partnership and shared commitment to the growth and development of the energy industry.

The announcement comes as part of Saudi Arabia’s ongoing efforts to diversify its economy and enhance its position as a global hub for petrochemicals and energy-related industries. By investing in cutting-edge infrastructure and fostering international partnerships, the Kingdom aims to capitalize on its abundant natural resources and secure a sustainable future for its economy.

As the construction of the Amiral complex progresses, it is expected to attract attention from industry experts and stakeholders worldwide. The collaboration between Aramco and TotalEnergies serves as a testament to the growing significance of sustainable petrochemical production and underscores their determination to shape the future of the industry.

With the $11 billion investment earmarked for this petrochemicals complex, Aramco and TotalEnergies are poised to make substantial strides in their shared vision of driving innovation, economic growth, and environmental stewardship in the global energy landscape.

2023/06/25 朝鮮日報

現代建設がサウジの石油化学プラント受注 同国で韓国企業最高の7千億円超







Aramco and TotalEnergies to build a giant petrochemical complex in Saudi Arabia

The Saudi Arabian Oil Company (“Aramco”) and TotalEnergies have taken the final investment decision for the construction of a world scale petrochemical facility in Saudi Arabia. The “Amiral” complex will be owned, operated, and integrated with the existing SATORP refinery located in Jubail on Saudi Arabia’s eastern coast. The investment decision is subject to customary closing conditions and approvals.

The petrochemical facility will enable SATORP to convert internally produced refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher value chemicals, helping to advance Aramco’s liquids to chemicals strategy.

The complex will comprise of a mixed feed cracker capable of producing 1.65 million tons per annum of ethylene, the first in the region to be integrated with a refinery. It will also include two state-of-the-art polyethylene units using Advanced Dual Loop technology, a butadiene extraction unit, and other associated derivatives units.

The project alone represents an investment of around $11 billion, of which $4 billion will be funded through equity by Aramco (62.5%) and TotalEnergies (37.5%). Its construction is scheduled to begin during the first quarter of 2023 with commercial operation targeted to start in 2027.

Eventually, the complex will provide feedstock to other petrochemical and specialty chemical plants, located in the Jubail industrial area, which will be built, owned and operated by globally renowned downstream investors, entailing an estimated additional $4 billion of investments. This will support the establishment of key manufacturing industries such as carbon fibers, lubes, drilling fluids, detergents, food additives, automotive parts and tires.

The overall complex, including adjacent facilities, is expected to create 7,000 local direct and indirect jobs.

In July 2022, SATORP was the first MENA refinery to be certified ISCC+, an international recognition towards its circular initiatives, such as the recycling of plastic and used cooking oil. A first batch of recycled plastic was processed by the refinery in November 2022.

Saudi Aramco Chief Executive Officer Amin H. Nasser said: “Our long-standing relationship with TotalEnergies has been further strengthened by this important project, which represents an opportunity for us to showcase the potential for cutting edge liquids to chemicals technologies that support the circular economy. With this collaboration we aim to expand the value chain by producing advanced chemicals more efficiently than ever before, accelerating industrial progress in the Kingdom.”

Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies said: “We are delighted to write a new page of our joint history by launching this expansion project, building on the successful development of SATORP, our biggest and most efficient refining & petrochemicals platform in the world. It also deepens the exemplary relationship between our two companies over many decades in the Kingdom of Saudi Arabia. This world-class complex also fits with our strategy to expand sustainably in petrochemicals by maximizing the synergies within our major platforms.”

Saudi AramcoとTotal は、Jubailにある両社JVの SATORP製油所に隣接して、ワールドクラスの混合ガス(エタンが50%、製油所のオフガスが50%)スチームクラッカーを建設し、年産150万トンのエチレンを生産する計画(Amiral)を推進している。

Saudi Aramco は2018年8月15日、取締役会がサウジでの石油化学計画を承認したと発表した。Total とのJV SATORP 製油所での石油化学計画で、Amiral と呼ばれる。

SATORPはフランスのTotal とのJV (Saudi Aramco 62.5%、Total 37.5%)で、Jubail に日産40万バレルのワールドクラスの製油所を建設(2014年の手直し増設で現在能力は44万バレル)、Arabian Heavy 原油を精製して、高品質の石油製品を製造する。世界でも最も効率のよい製油所の一つと見られている。


当初は 25%分を公募し、両社は37.5%ずつとなる予定であったが、公募増資を取り止め、当初比率で倍額増資をしている。

2009/6/22 Saudi Aramco、製油所建設を再開



投資額は約50億ドル程度で、両社は2018年第3四半期にfront-end engineering and design (FEED)を開始する。


2019/2/4     大林産業、AramcoとTotalのサウジの新石油化学計画の一環でポリイソブチレンを製造


Jul 21, 2023

Saudi Aramco Buys $3.4 Billion Stake In Chinese Petrochemical Firm

Saudi Aramco said on Friday it had completed the purchase of a 10% stake in a Chinese petrochemical firm for the equivalent of $3.4 billion as the Saudi oil giant continues to expand its downstream footprint in one of its key export markets.

Aramco successfully closed the acquisition of a 10% interest in Rongsheng Petrochemical Co Ltd, which followed the signing of definitive strategic agreements in March this year.

“Our strategic partnership with Rongsheng advances Aramco’s liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil,” Mohammed Al Qahtani, Aramco Downstream President, said in a statement.

The acquisition of 10% of the petrochemical business in China is part of the Saudi oil giant’s long-term growth strategy to expand in the “vital” Chinese market, Al Qahtani added.

The world’s largest crude oil exporter, Saudi Arabia, is betting big on the growing market for crude in China, as Aramco is strengthening its downstream presence and crude supply market share in the world’s top importer.

Saudi Aramco announced earlier this year two major refinery and petrochemical deals in China, which not only give the world’s largest oil firm a share of the Chinese downstream market but also an additional export outlet for 690,000 barrels per day (bpd) of Saudi crude in China.

A Saudi Aramco joint venture plans to build a $10-billion refining and petrochemical complex in China over the next three years, while Aramco has now completed the acquisition of 10% in Rongsheng Petrochemical and will supply 480,000 bpd of Arabian crude oil to Rongsheng affiliate Zhejiang Petroleum and Chemical Co. Ltd (ZPC), under a long-term sales agreement.

The two deals give Aramco a long-term export outlet to 690,000 bpd of Saudi crude to China, which would boost Saudi Arabia’s market share by locking in contracts for the coming years and decades.

2018/10/22 Saudi Aramco、浙江石油化工に出資  

Saudi Aramco はこのたび、浙江省舟山緑色石化基地で石油精製・石油化学計画を進めている浙江石油化工(Zhejiang Petrochemical )に出資することを決めた。10月18日に調印式を行った。

Saudi Aramco は9月に、浙江石油化工の主株主の浙江榮盛控股集團(Zhejiang Rongsheng)との間で、本計画のための原油の長期供給契約を締結している。


 March 13, 2024

Saudi Aramco invests in US climate tech company

US-based climate technology firm CarbonCapture secured $80 million (Dh293 million) in funding from various investors, notably Saudi Aramco's venture capital unit.

Prime Movers Lab spearheaded the Series A fundraising, with contributions from Aramco Ventures, Amazon's Climate Pledge Fund, Siemens Financial Services, Idealab X, and Marc Benioff's Time Ventures.

This substantial investment, reported by Reuters citing industry tracker PitchBook, marks one of the most significant injections of private capital into direct air capture. Based in Los Angeles, CarbonCapture is at the forefront of this latest major funding round.

The US startup specializes in constructing direct air capture machines designed to extract carbon dioxide from the atmosphere. Through its innovative technology, the company has already pre-sold more than $26 million (Dh 95 million) worth of carbon removal credits to numerous global corporations.

Notable clients include Microsoft, Boston Consulting Group, Alphabet, Meta, Stripe, Shopify, McKinsey & Company, and JPMorgan Chase & Co.

In 2022, Aramco unveiled a $1.5 billion (Dh5.5 billion) fund geared towards investing in technology that facilitates the energy transition.

Under the management of Aramco Ventures, the fund is strategically allocated to support the company's declared ambition of achieving net-zero greenhouse gas emissions by 2050 across its wholly owned operational assets.

This initiative also entails the development of novel lower-carbon fuels as part of Aramco's commitment to sustainability and environmental responsibility.


Our direct air capture machines use solid sorbents that soak up atmospheric CO2 when cooled and release concentrated CO2 when heated. The captured CO2 can then be permanently stored underground or used to make synthetic fuels, low-carbon concrete, carbon black, or other industrial products that require clean CO2.


April 02, 2024  (RTTNews)  

Saudi Aramco Awards $7.7 Bln In Contracts For Gas Plant Expansion

Saudi Aramco Tuesday awarded engineering, procurement and construction (EPC) contracts worth $7.7 billion for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia.

Aramco awarded EPC contracts to Samsung Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.

The project is expected to increase the plant's processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd).

The company said the expansion will contribute to the company's strategy to raise gas production by more than 60% by 2030, compared to 2021 levels.

The Fadhili Gas Plant expansion, which is expected to be completed by November 2027, is also expected to add an additional 2,300 metric tons per day to sulphur production.

Wail Al Jaafari, Aramco Executive Vice President of Technical Services, said: "The award of these contracts reflects Aramco's goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export. Together with leading international companies, we are advancing our goal to increase gas production. The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry."

The expansion will contribute to Aramco's strategy to boost its gas production by more than 60% from 2021 levcels by 2030.

The plant is also expected to add an additional 2,300 metric tons per day of sulphur production.

Saudi Arabia in January ordered Aramco to lower its oil production capacity target to 12 million barrels per day (bpd) from 13 million bpd.

The kingdom is working on developing its unconventional gas reserves, which require advanced extraction methods such as those used in the shale gas industry.

It is also looking at investing in liquefied natural gas (LNG) projects abroad, having made its first foray last year by buying a minority stake in MidOcean Energy for $500 million.

韓国2社 サウジで過去最高の計1兆1千億円受注=ガスプラント工事






April 22, 2024 

Saudi Aramco in talks to buy 10% of China's Hengli Petrochemical

 Saudi oil giant Aramco said on Monday it is in talks to acquire a 10% stake in China's Hengli Petrochemical, opens new tab, a deal which would further bolster Aramco's growing downstream presence in China.

The potential deal "aligns with Aramco's strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements," it said.
An agreement would be the latest in a string of Aramco deals with Chinese refiners.
In January, Chinese privately-controlled refiner Rongsheng Petrochemical, opens new tab, and Aramco announced they were in talks to take a 50% stake in each other's refineries in China and Saudi Arabia.
Aramco in July closed a deal valued at $3.4 billion to buy a 10% stake in Rongsheng, attached to a 20-year crude oil supply deal with Rongsheng-controlled Zhejiang Petrochemical Corp.
Aramco has also been in talks to buy a 10% stake in Shandong Yulong Petrochemical Co and last year announced plans to become a strategic investor in another private Chinese refiner Jiangsu Shenghong Petrochemical.
Aramco subsidiary SABIC said in January it will go ahead with building a petrochemical complex in southeastern China's Fujian province, expected to cost around $6.4 billion, in a joint venture with state-owned Fujian Fuhua Gulei Petrochemical.
Hengli Petrochemical owns and operates a 400,000 barrels a day refinery and integrated chemicals complex in China's Liaoning Province, as well as several facilities in the provinces of Jiangsu and Guangdong.


Hengli Petrochemical 恒力石化股分有限公司)は、主に精製、石油化学、ポリエステルの新素材事業を行う中国を拠点とする企業である。

Rongsheng Petrochemical 荣盛石化股份有限公司

Shandong Yulong Petrochemical Co