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 Kingdom’s natural gas industry, the minister
referred to the present and future role of gas and highlighted
the historical development of this industry in the Kingdom. The
development, he said, had passed through four main phases and was
now in its fifth phase. The first phase started with oil
production in 1938 and lasted through 1975. The fifth phase was
launched when the Kingdom invited foreign investment in gas
exploration, production and processing, as well as linking these
initial upstream resources with downstream processes.
Saudi Arabia's original Natural
Gas Initiative (NGI) had been all but totally terminated due to differences between international
oil companies (IOCs) and the government. The authorities
reportedly intend
to make a new revised offer
during a meeting in London later this month.
The integrated programme stipulated exploration and processing of gas plus
construction of power stations, water desalination plants and
petrochemical schemes. The
gas sector was excluded from a negative list that specifies
activities prohibiting foreign investments.
Differences
From the onset, the NGI looked complicated in many respects.
Despite several rounds of negotiations, the two sides could not
agree on a course of action leading to implementation agreements. At the core of the
disagreement was the internal rate of return (IRR).
Other restrictions made the gas ventures even less attractive.
For example, the offer was valid only for areas of non-associated
gas.
Additionally, areas with proven gas reserves were off limits.
Also, the two sides disagreed on the interpretation of the
seismic surveys. Saudi Aramco, which represented the government,
had estimated the three areas to contain 35 trillion cubic feet
of gas.
Setback
In January and as part of moves to avoid collapse of the entire
deal, the
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.
Good morning, gentlemen.
It is my pleasure to participate in this important Gas Conference
and to be able to speak to you about Saudi Aramco’s role in the development of the Kingdom’s gas program and our commitment to meet
future growth in gas demand that will maximize the Kingdom
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 Kingdom’s gas strategy also envisioned inviting
foreign companies to participate in the Kingdom’s gas sector. The strategic driver for the
government’s opening of
upstream gas development is to attract foreign investments.
This Strategy culminated with the recent signing by H.E. Ali I.
Al-Naimi, Minister of Petroleum and Mineral Resources of the four
gas agreements with 6 major International Oil Companies which
marked a historic milestone for the Kingdom and Saudi Aramco.
The four exploration/development
gas agreements covering the Rub’al-Khali basin include Shell, Total, Lukoil, Sinopec, ENI and Repsol along with Saudi Aramco as indicated on
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 ーfrom operation, technology exchange and
application to day-to-day management and representation to the
Board of each of these four joint ventures.
Saudi Aramco has loaned some of the Company's best talent to
these ventures to exchange ideas, knowledge and the unique
insight gained from years of working on Saudi gas geology,
reservoirs and appropriate technologies.
The Company is also counting on exchanging fresh insight from the
skills, know-how and the talent that the partner companies will
bring to the venture.
Saudi Aramco will provide logistical support as needed and only
when it can't be found locally.
The comprehensive agreements between the IOC's and the Government
of Saudi Arabia that were recently signed addressed in details
the commitment to Saudization, Environmental protection and the
utilization of local Infrastructure and services.
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 Kingdom’s economic well being and those of our
partners.
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.
"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.
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.
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.
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 refinery’s production.
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.
Saudi Aramco eyes $129 bln investment in next 5 yrs
State oil giant Saudi Aramco plans to invest $129 billion on
new energy projects in the next five years, the company's executive vice
president of operations said on Sunday.
About
$70 billion
of the total would be spent by international and domestic joint
ventures, and the remaining $59 billion on projects solely undertaken by
Aramco, Khalid al-Falih told Reuters.
The $129 billion figure is nearly $40 billion higher that
previous estimates given by Saudi official for expansion.
"We are updating our figures all of the time. This figure
includes more projects," Falih said. This includes refinery projects
in the United States and China, a second phase of
the Saudi-based PetroRabigh 2380.SE, and a giant petrochemical
plant at Ras Tanura to be built by Dow
Chemical.
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 Ltd’s 25 percent share of polyolefin
products produced by the Fujian Refining and Petrochemicals
Company of
the People’s Republic of China.
This agreement is
regarded as one of the significant pillars in the progress of the strategic
partnership between SABIC and Saudi Aramco, and the agreement is expected to
boost and support the strong leading position of SABIC in the
field of production and marketing of polyolefins, worldwide.
The project’s products will include such
polyolefins as Liner low density polyethylene
(LLDPE), at a production capability of 400,000 tons annually,
high density polyethylene (HDPE), at a production capacity of
400,000 tons annually. The project will also produce
polypropylene (PP), at a production capacity of 470,000 tons
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. Jum’ah, Saudi Aramco president and
chief executive officer. "We believe that a delay at this
time will allow both the contracting and financial markets to
better accommodate the project and will prove to be advantageous
for the project company.”
The companies will
maintain joint engineering, start-up planning and other
preparatory activities to ensure project continuity while
accommodating the delay.
Saudi Aramco and Total
Award EPC Contracts for Jubail Export Refinery
Saudi
Aramco Total Refining and Petrochemical Company (SATORP) finalized the awarding
plan forEngineering, Procurement and
Construction (EPC) contracts that constitutethe 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 Agreement’
was signed in
Jiddah, Saudi Arabia, by Saudi Aramco and Total S.A.
Following the signing of
the agreement, SATORP was formed during the third quarter of
2008, and the project remains on schedule. Saudi Aramco and Total
will ultimately
own 37.5 percent of the company each. Subject to required regulatory
approvals, Saudi Aramco plans to offer 25 percent of the company
to the Saudi public in an Initial Public Offer (IPO) during the
last quarter of 2010.
AUGUST 31, 2009 WSJ
Saudi Aramco, Dow Petrochem Complex To Produce 8M T/Yr Of
Products
State-run Saudi Arabian Oil Co., or Saudi Aramco, said Monday its
planned giant petrochemical project with U.S.-based Dow Chemical
Co. (DOW), will produce 8 million tons of products per year.
The petrochemical project, known as Ras Tanura Integrated
Refining and Petrochemicals, or RTIP, has an estimated cost of
over $20 billion. It's expected to be one of the world's largest
chemical and plastics sites and could become fully operational in
2015, Saudi Aramco said in a statement posted on its Web site.
"It is a highly integrated complex. It consists of 35
process units, each of which could be considered a major project,
and will produce on the order of 8 million metric tons of
products annually," Adil al-Tubayyeb, vice president of
RTIP, said in a statement.
The complex will produce ethylene and polyethylene plastic;
chlorine and caustic soda, known collectively as chlor-alkali;
propylene oxide and propylene glycol; vinyl chloride; epoxy
resins; polyurethanes; polycarbonate, and other basic chemicals
and plastics.
Saudi Aramco said the project, which is still in the engineering
and design phase, isn't yet a joint-venture.
"We are a team working to establish a joint venture...we're
not going to be Saudi Aramco or Dow Chemical; we're going to do
this the RTIP way," al-Tubayyeb said.
An investment decision on whether the project should proceed is
expected to be made next year.
2009/11/8 Thomson
Reuters
Saudi to
finalise gas plant project
Saudi Arabia will shortly finalise plans to build the largest
ever gas plant in the kingdom to supply utilities and some
industries, Saudi Aramco's chief executive, Khalid al-Falih said
on Sunday.
The new gas plant is expected to process more than 1.8 billion cubic
feet per day (cfd) of gas, Falih told Reuters during an
interview on the sidelines of a petrochemical plant inauguration.
Saudi Aramco
has said the kingdom plans to bring online in 2013
its 900,000 barrels per day Moneefa project, Reuters
has reported. After delaying the project this year,
no further delays were envisaged for now, Aramco's VP
of Northern Area Oil Operations Fahad al-Moosa said.
"This
plant (Wasit) will be the biggest gas plant we have ever built
... and this will go a long way to meet rising demand for
utilities and some industries," Falih said.
"It will process all offshore non associated dry gas and
this will go a long way to meet rising demand for utilities and
some industries."
The Wasit
gas development programme at Moneefa is split into several projects
that include building gas processing facilities, two offshore gas
platforms, one tie-in platform, subsea power and communication
links and pipelines.
Canada's SNC-Lavalin said in September that it would provide
engineering and design work and project management services for
the project.
Saudi Arabia is short of gas to meet demand from power plants and
industry. Energy consumption has risen in the world's top oil
exporter in recent years as record oil export revenues fuelled an
economic boom.
Saudi Arabia is experiencing annual gas demand growth of 7
percent.
Supplies from this gas plant will not be used as
feedstock
for the growing petrochemical sector in the kingdom.
"It will not have any NGL (natural gas liquids) ... it will
not address any petrochemical production needed for
olefins," Falih said.
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 Company’s crude oil production capacity to
12 million barrels per day.
RSRC is one of a number of downstream projects where Saudi Aramco
is demonstrating its commitment to meet future worldwide energy
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
Aramco’s largest crude oil lifters.
Fujian
Refining & Petrochemical Company Limited 福建聯合石油化工
出資：ExxonMobil
China Petroleum and Petrochemical Company Limited25% Saudi Aramco Sino Company
Limited25% 中国側50%Fujian
Petrochemical Company Limited （Sinopec50/Fujian Government50）
商業生産：2008
Saudi Aramco is
working with Chinese oil and petrochemical company Sinopec to
find and develop gas reservoirs as part of the Kingdom of
Saudi Arabia's Upstream Gas Offering. The exploration
activities are taking place in Contract Area B, an
approximately 40,000-square-kilometer area in the Kingdom's
Rub' al-Khali Basin.
To explore Contract Area B, Sinopec and Saudi Aramco have
formed an exploration and producing company, Sino Saudi Gas
Limited, with Sinopec holding 80 percent of the company and
Saudi Aramco 20 percent.
Sinopec is a vertically integrated energy and chemical
company. It is China's largest producer and marketer of oil
products (both wholesale and retail of gasoline, diesel, jet
fuel), and No.1 supplier of major petrochemical products
(intermediates, synthetic resin, synthetic fiber, synthetic
rubber, fertilizer), as well as the 2nd largest crude oil
producer.
“This
agreement further strengthens our mutually beneficial partnership
with Sinopec, and in addition it demonstrates our commitment and
capability to add value to our expanding downstream business
through a world-class partner, with a solid network of marketing
and distribution capability needed to support the Red Sea
Refining Company,” said Khalid A. Al-Falih, President
and CEO, Saudi Aramco.
“Sinopec
and Saudi Aramco have developed a strong and long-term
relationship, and have built concrete cooperation in refining,
petroleum trading, and engineering services. The Red Sea Refining
Company will open a new chapter in which Sinopec consolidates the
complementary strategic partnership with Saudi Aramco through the
downstream investment in Saudi Arabia. The project is a further
step by Sinopec to expand its international operation by
developing its overseas refining and petrochemical business, and
to sharpen its competitive edge. It will also help Sinopec gain
access to more energy sources and secure China’s energy supply”
said 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 “grassroots”
refinery at Yanbu’
that covers about
5.2 million square meters. It is scheduled to be operational in
2014.
The refinery will process 400,000 barrels a day of Arabian Heavy
crude oil and produce high-quality refined products meeting the
most stringent specifications for domestic and global markets.
The products include 90,000 bpd of gasoline, 263,000 bpd of
ultra-low sulfur diesel, 6,300 metric tons per day (MTD) of
petcoke and 1,200 MTD of sulfur.
About Saudi Aramco
Owned by the Saudi Arabian Government, Saudi Aramco is a
fully-integrated, global petroleum enterprise and a world leader
in exploration and producing, refining, distribution, shipping
and marketing. The company manages the largest proven reserves of
conventional crude oil, 260.1 billion barrels, and the
fourth-largest gas reserves in the world, 275.2 trillion cubic
feet. For more information, please visit www.saudiaramco.com.
About China Petrochemical Corporation (SINOPEC)
SINOPEC is an integrated energy and chemical company with
principal businesses of oil and gas exploration, production,
storage and transportation, refining, production, transportation,
trade, marketing and sales of refined products and
petrochemicals. SINOPEC is China’s largest producer and supplier of
refined products and petrochemicals, and second largest oil and
gas producer. Globally, SINOPEC is the second largest refiner and
petrol stations owner and operator. It is also the fourth largest
ethylene producer worldwide. SINOPEC is ranked 7th on the 2010
list of Fortune 500 Companies. For more information, please visit
www.sinopecgroup.com
2011/11/20 Financial Express
Saudi Aramco wants to build crude oil refinery in Bangladesh
Oil-rich Saudi Arabian Oil Company -- Saudi Aramco, has shown interest in
building a crude oil refinery plant in Bangladesh at a cost of around US$ 2.5
billion, a top government official said Saturday.
He said the Saudi firm has placed a proposal to the Economic Relations Division
(ERD) to build the refinery at a suitable location.
Capacity of the planned refinery will be 7.0-8.0 million
tonnes per year, five times larger than the local crude oil refinery,
said the official.
The state-owned Eastern Refinery Ltd (ERL) can refine only 1.4 million tonnes of
crude oil per year.
Saudi Aramco is interested to provide a portion of the refined petroleum in
local market and the remaining for export to overseas
countries, said the official.
The ERD has recently informed the energy ministry of the Saudi firm's intention
to build a refinery in the country.
Saudi Aramco has sought Bangladesh government's opinion over its planned
investment proposal as early as possible.
"We have received the Saudi Aramco's proposal recently over building an oil
refinery plant at its own cost," a senior energy ministry official said.
He said the ministry is now scrutinising the Saudi proposal and will inform its
decision soon.
Saudi Aramco is a regular crude oil supplier of state-owned Bangladesh Petroleum
Corporation's (BPC) subsidiary Eastern Refinery Ltd.
It has already imported around 518,000 tonnes of crude oil from Aramco until
September, 2011.
Apart from Saudi Aramco BPC is also importing crude oil from UAE's ADNOC.
BPC has imported 382,000 tonnes of crude oil from ADNOC to refine in ERL until
September, 2011and planned to import 700,000 mts of Arab Light crude from Aramco
in 2012.
BPC will require importing 1.4 million tonnes of crude oil in 2012, up by 12 per
cent from 2011 imports of 1.25 million tonnes.
BPC, which typically imports 1.4 million mts/ of crude oil per year from the two
Middle East producers, is only importing 1.25 million mts of crude this year due
to a 45-day scheduled maintenance.
BPC has projected that it will require to import around 6.50 million tonnes of
refined petroleum products in fiscal year 2011-12 (July-June), up by 27.45 per
cent from previous fiscal year's (2010-11) 5.10 million tonnes.
The state-owned corporation will require around taka 460 billion (US$ 6.21
billion) to import petroleum products in 2011-12, up by 53 per cent from the
previous fiscal year's taka 300 billion, BPC has projected.
BPC imported around 3.8 million petroleum products in 2009-10 fiscal year.
Country's petroleum import is growing rapidly as the country's oil demand is
mounting as the government is diversifying its fuel sources for electricity
generation by setting up dozens of diesel and furnace oil-fired power plants to
cut the country's over dependence on natural gas for electricity generation.
Petroleum demand in the country's industrial and transport sector is also
increasing coping with the country's sustained overall GDP growth of around 6.0
per cent, which the country is maintaining in the past one decade.
BPC is now in acute fund crunch to import increased quantity of petroleum
products to meet the local demand.
BPC has been seeking additional funds from the International Islamic Trade
Finance Corporation, the lending arm of Islamic Development Bank Group, to pay
mounting import bills.
It has also arranged a deferred payment scheme for its refined oil product
purchases from Petronas and PNOC.
Officials said country's import costs may reduce substantially if it meets
demand of mounting petroleum products from the planned refinery of Saudi Aramco.
BPC may have also a stake into Aramco's planned refinery plant, if it builds the
plant.
BPC currently has oil import deals with Kuwait Petroleum Corporation, Malaysian
state-owned Petronas unit Petco, Philippine National Oil Company (PNOC),
Emirates National Oil Company, Egypt's Middle East Oil Refinery, Maldives
National Oil Company, PetroChina, Indonesia's Bumi Siak Pusako and Vietnam's
Petrolimex.
2012/2/18 Saudi Aramco
Memorandum of Understanding signed with PT
Pertamina
Saudi Aramco Asia Company Limited (SAAC), a subsidiary of Saudi Aramco, and PT
Pertamina (Persero) signed a Memorandum of Understanding to jointly evaluate the
economic feasibility to build an integrated refining and petrochemical project
in Tuban in East Java, in the Republic of Indonesia.
"This MOU is a significant first step in extending our already strong
relationship with Pertamina, and is also part of Saudi Aramco’s strategy to
enhance its global downstream presence."
The proposed refinery and petrochemicals project will be designed to process
300,000 barrels per day of crude oil, much of which will be supplied by Saudi
Aramco pursuant to a long-term contract, and will produce high-quality refined
petroleum and petrochemicals products to meet rising demand in Indonesia and
elsewhere in southeast Asia.
The project represents an opportunity for Saudi Aramco to partner with Pertamina,
Indonesia’s state oil and gas company, and to capitalize on investment
opportunities in Indonesia’s growing downstream industry. Additionally, it
extends the close cooperation between Saudi Aramco and Pertamina and increases
prospects for industrialization and economic diversification in Indonesia.
“This MOU is a significant first step in extending our already strong
relationship with Pertamina, and is also part of Saudi Aramco’s strategy to
enhance its global downstream presence,” said Dawood M. Dawood, Saudi Aramco’s
Vice President of Marketing, Supply and Joint Venture Coordination. “Saudi
Aramco is committed to making win-win investments with partners for projects
that yield mutual benefits and contribute to economic growth and development.”
“This cooperation in investment with Saudi Aramco is of the highest value for
both Pertamina and the Republic of Indonesia to strengthen the fuel and
petrochemical supply, to satisfy the huge domestic demand now and for the
future,” said M. Afdal Bahaudin, Pertamina’s Director for Investment Planning
and Risk Management. “Pertamina fully supports our partner to make a successful
project that is beneficial to both parties and that further strengthens our
cooperation with Saudi Aramco. The Tuban refinery and petrochemicals project is
part of Pertamina’s plan to improve Indonesia’s energy security.”
Following the signing of the Memorandum of Understanding, a project team will
work on the next phase of the project, which will consist of a joint scoping
study that will include market research, configuration studies and economic
analysis.
2012/3/8 SaudiGazette
Aramco to explore for oil in Red Sea
Saudi Arabia is beginning an oil exploration push
that it says is expected to turn up 100 billion barrels of
new oil in existing fields in the Kingdom and in unexplored regions
including in the Red Sea.
The effort is also expected to increase the company’s
natural gas production by 40 percent by 2014.
Saudi Aramco executive said Tuesday the company plans to drill its
first deepwater exploratory well in the Red Sea by
year-end.
“We are optimistic about the potential for significant discoveries,” said Amin
Nasser, Saudi Aramco senior vice president upstream, at the IHS CERA conference
in Houston. “We expect to start drilling in the deepwater by the end of this
year.”
Deepwater and shallow water drilling are key components of Saudi Aramco’s
long-term goal of finding at least 100 million barrels of energy resources
within the Saudi Arabian kingdom in the next several decades, Nasser said. The
company is also working on increasing its rate of oil recovery from fields to 70
percent from 50 percent in coming years.
“The program was designed to ensure that we continue to have
ample spare capacity to meet underestimated energy demand,”
he said. Saudi Arabia has 267 billion of so-called proven
reserves, about one-fifth of the world’s total. “Proven reserves” is an
industry term that means oil or gas that has been discovered and could be
produced with today’s technology.
The world consumes about 89 million barrels of oil per day, or 32.5 billion
barrels per year. The industry describes a field as giant if it has 500 million
barrels of oil or more.
He said geological surveys suggest that the oil will be found in “frontier”
areas in the Kingdom, including in the shallow and deep waters of the Red Sea.
Nasser said shallow water drilling has begun already and that deep water
drilling will begin later this year.
“We are very optimistic about the potential for significant discoveries,” he
said.
He also said improved oil extraction techniques will allow the country to
pull 70 percent of the oil from its existing fields,
up from 50 percent.
The natural gas push is being made to handle strong growth in Saudi Arabian
power demand. Nasser said power demand is rising 7 percent a year.
He also said that Saudi Aramco will improve its research and development
capabilities by doubling the number of scientists who work for the company and
opening research centers around the world.
The first new research center will be in Houston, he added, though he did not
say when it would be established.
Oil prices rose above $105 a barrel Wednesday amid expectations that an
improving US economy will eventually boost crude demand. By early afternoon in
Europe, benchmark oil for April delivery was up 40 cents to $105.10 in
electronic trading on the New York Mercantile Exchange. The contract fell $2.02
to settle at $104.70 per barrel in New York Tuesday.
In London, Brent crude was up 78 cents at $122.76 per barrel on the ICE Futures
exchange.
Crude has jumped from $75 in October because of diplomatic tensions with Iran, a
major oil producer, and as US economic indicators including employment have
slowly improved over the last few months.
Oct. 10, 2012 UPI
Saudi Aramco finds gas in Red Sea
The Saudi oil minister said the state-owned energy company made a natural gas
discovery about 15 miles offshore in the Red Sea.
Saudi Oil Minister Ali al-Naimi said a natural gas field near the port of Dhuba
produced around 10 million cubic feet per day during an initial testing at a
depth of 17,700 feet. A test at a depth of 17,275 feet produced around 5.2
million cubic feet per day, the Saudi Press Agency reports.
The field was discovered by Saudi Aramco.
The country is shifting its energy mix to meet growing domestic demand. In
September, a report from Citigroup predicted that Saudi Arabia may need to start
importing oil by 2030 to meet domestic energy demand. More than 80 percent of
the country's revenue is based on oil.
In terms of natural gas, Saudi Arabia ranks fourth in the world in proven
reserves.
2012/10/21 Aramco
Contractors selected for the Jazan Project
Saudi Aramco has completed the contractor
selection process for the engineering, procurement and construction (EPC) phases
of the Jazan Refinery and Terminal, in the southwest part of the Kingdom of
Saudi Arabia.
After completion of front-end engineering design (FEED) work in April 2012,
competitive bidding for the EPC contracts took place, and it has concluded with
the selection of Saudi Arabian and international contractors to implement the
mega-project.
A robust and competitive process took place for the projects' major contract
packages and the following companies are among the selected contractors:
Petrofac Saudi Arabia Ltd. (Saudi Arabia)
Hyundai Arabia Co. Ltd. (Saudi Arabia)
Hanwha Engineering and Construction Corp. (Korea)
SK Engineering & Construction Co. Ltd. (Korea)
Tecnicas Reunidas (Spain)
JGC Corporation (Japan)
Hitachi Plant Technologies, Ltd. (Japan)
A signing ceremony for the major packages and contracts' awards is scheduled to
be held in Jazan Economic City next month at the project site.
Scheduled for completion in late 2016, Saudi Aramco’s Jazan Refinery and
Terminal mega-project is expected to play a significant role in the supply of
feedstock and fuels to support the growth of major industries in Jazan Economic
City. The Jazan Refinery and Terminal project is expected to create numerous
economic benefits, including business opportunities for local enterprises and
new job opportunities.
About Jazan Refinery and Terminal Project
Saudi Aramco's Jazan Refinery and Terminal Project is a 400,000 barrel-per-day
refinery with associated terminal facilities on the Red Sea near Jazan in the
southwest part of the Kingdom of Saudi Arabia.
Scheduled for completion in late 2016, the refinery will process Arabian Heavy
and Arabian Medium crude oils, and produce gasoline, ultra-low sulfur diesel,
benzene and paraxylene.
The Jazan Refinery will be synergized with a world-scale Integrated Gasification
Combined Cycle plant that is currently at the FEED stage.
The marine terminal will have the capacity to handle Very Large Crude Carriers (VLCCs)
for the supply of crude oil to the refinery, and berths to support refined
product exports from the refinery.
The Ministry of Petroleum and Mineral Resources had entrusted Saudi Aramco to
build and operate the Jazan Refinery and Terminal, which is wholly-owned by
Saudi Aramco and will become an integral part of its refining network to meet
the Kingdom’s energy demand and export surplus fuels to international markets.
Nov 14, 2012 Reuters
Saudi Aramco inks deals on 400,000 bpd Jizan
plant
Saudi Aramco, the world's biggest oil producer, signed deals on Wednesday worth
an estimated $6 billion to build a refinery in the impoverished region of Jizan
that will pump out up to 400,000 barrels of oil per day.
The state-run firm signed the engineering,
procurement, construction contracts with Spain's Tecnicas Reunidas, Japan's JGC,
Hitachi Plant Technologies, South Korea's Hanwha Engineering and Construction
Corp, Hyundai Heavy Industries and Britain's Petrofac. While Saudi al-Ajmi
company won a site preparation contract.
Aramco did not say how much the project was worth. However, industry sources
told Reuters the overall construction cost of the nine packages for the refinery
was around $6 billion.
The refinery will be capable of
processing Arabian Heavy and Arabian Medium crude oil and produce gasoline,
ultra-low sulfur diesel, and benzene.
The refinery will be capable of
processing Arabian crude oils to manufacture approximately 75,000 bpd of
gasoline, 100,000-160,000 bpd of ultra-low-sulfur diesel (10 parts per
million), and 160,000-220,000 bpd of fuel oil, depending on the crude mix
processed. It is envisioned that the proposed refinery will ultimately be
integrated with a future nearby world scale power and water facility. The
marine terminal will have the capability of receiving Very Large Crude
Carriers for the supply of crude to the refinery and will have berths to
support product exports from the refinery.
Hyundai's contract was below $300 million, Hanwha around $600 million, Petrofac
around $1.4 billion, SK and JGC around $1 billion each while Tecnicas Reunidas
around $1 billion. Hitachi's contract was for around $500 million, the sources
said.
The refinery will process heavy and medium crude and will provide feedstock for
conversion industries and a 2,400 megawatt power plant that will feed the
refinery and the Jizan economic city as well as cities on the western coast,
Aramco's CEO Khalid al-Falih said in a speech at the contract signing ceremony.
The project will help generate 1000 direct and 4000 indirect jobs, he said.
"The refinery will be the nucleus for
the Jizan Economic
City and will play a major role in the development and will give it a
competitive edge, which is translated in the feedstock availability for
industries, power and fuel," said Falih.
Jizan Economic
City
Primary and Heavy Industries Zone
JEC focuses particularly on heavy
industries with the intensive use of energy and manufacturing industries as
a main advantage of the kingdom. It takes advantage of its strategic
location near major global maritime lines at the Red Sea and the Indian
Ocean which allows the accessibility of these industries in Europe, Asia and
Africa.
Among the industries designed for construction in Jazan Economic City:-
Saudi Aramco Oil Refinery
The Refinery Project is one of the
most important projects of the Kingdom of Saudi Arabia for the
economical development of Jazan region. Thus, the Custodian of the Two
Holly Mosques engaged Saudi Aramco Company to construct and finance an
oil refinery project with a refining capacity of 400 thousand barrels
per day. This project will contribute considerably in the growth of
development and the creation of job opportunities for the people of
Jazan region. Accordingly, it will add up a virtual advantage which
appeals worldwide investments for Jazan Economic City.
Steel Complex
The construction of the Steel Complex
Project (Pan-Kingdom) has already started. It aims to produce metal
plates, with a production capacity of one million tons per annum, and
rebar鉄筋 with a production
capacity of half million tons per annum. The production will start in
the third-quarter of 2011.
Ship Building & Maintenance
Complex
A dry dock will be linked to the main
seaport for ship building & maintenance, which will make JEC one of the
best regions in terms of attractiveness towards this category of
industry, and also to serve up boats and fishing vessels.
Secondary Industries Zone
The JEC Master Plan is designed to create
appropriate opportunities for industrial development and recent developed
industries based on the opportunities of different secondary industries
offered by the heavy industries for the concept of local raw materials and
global standards production.
Silicon Processing
Pharmaceuticals
Food Industries
Primary Construction Materials
Petrochemical Industries
Plastic Industries
Metal Fabrication and Manufacturing
Automotive Spare Parts
Human Resources and Business Development
Zone
Residential Areas and Seafront District
2013/2/5 Platts
Saudi Aramco plans 2.6 mil mt/yr PX, 820,000
mt/yr benzene capacity by 2017: source
New paraxylene capacity of 2.6 million mt/year
and benzene capacity of 820,000 mt/year will be built in Saudi Arabia over the
next four years by Saudi Aramco, a source close to the state company said
Tuesday.
These aromatics capacities will be at five refinery complexes in the country,
the source added. Saudi Aramco is involved in all these projects either as a
partner or as the sole owner.
The 400,000 b/d Saudi Aramco Total Refinery and Petrochemical Co., or Satorp,
refinery complex at Jubail, scheduled to start operations in the third quarter,
will have a PX capacity of 700,000 mt/year and benzene capacity of 140,000 mt/year,
the source said. While Aramco holds a 62.5% stake in Satorp, France's Total
holds 37.5%.
"Saudi Aramco is already in talks with
prospective buyers of cargoes from the Satorp plant," the source said.
A 700,000 mt/year PX and a 140,000 mt/year benzene plant are part of 400,000 b/d
refinery complex being built by Yanbu Aramco Sinopec Refining Co., or Yasref, at
Yanbu, according to the source. The refinery complex, currently under
construction, is scheduled for a startup in 2014. While Saudi Aramco has a 62.5%
stake in Yasref, China's Sinopec holds the remaining 37.5%.
At end-2015, Petro Rabigh's upcoming second phase petrochemicals complex will
start production at its 1.35 million mt/year PX and 170,000 mt/year benzene
plants, the source said. Petro Rabigh Phase II will include a new ethane-based
steam cracker using 30,000 Mcf/d of ethane and 3 million mt/year of naphtha for
feedstock, he said. Further downstream, the complex will include plants for the
production of ethylene-propylene rubber, thermoplastic olefins, methyl
methacrylate monomer, polymethyl methacrylate, caprolactam, polyols, cumene,
phenol/acetone, acrylic acid, SAP and nylon-6, as well as low density
polyethylene/ethylene vinyl acetate, the source said.
Saudi Aramco and Sumitomo each own a 37.5% stake in Petro Rabigh. The rest of
shares are listed on Saudi stock exchange Tadawul.
Another 1.2 million mt/year PX and 285,000 mt/year benzene capacity will come up
in end-2016 at Saudi Aramco's 525,000 b/d refinery complex at Ras Tanura in east
coast of Saudi Arabia, the source said. Saudi Aramco's 400,000 b/d refinery
complex at Jazan in southwest coast of Saudi Arabia which is scheduled to start
production in early 2017, will have a 650,000 mt/year PX and 85,000 mt/year
benzene capacity, he said.
＊ 合計するとPX能力は4600千トンとなり、文中の2600千トンと異なる。
他のソースでは、 Rabigh paraxylene (PX) plant of
800,000-850,000 tonnes/year and a benzene unit with a capacity of
200,000-400,000 tonnes/year.
Ras Tanur 400,000 tons/year benzene and
460,000 tons/year of paraxylene.
立地
出資
Refinery
千トン
start
Para
Xylene
Benzene
Saudi Aramco Total Refinery
and Petrochemical Co.
(Satorp)
Jubail
Aramco 62.5%
Total 37.5%
400,000 b/d
700
140
2013/3Q
Yanbu Aramco Sinopec
Refining Co.
(Yasref)
Yanbu
Aramco 62.5%
Sinopec 37.5%
400,000 b/d
700
140
2014
Petro Rabigh (Phase 2)
Rabigh
Aramco
37.5%
住友化学 37.5%
-
1,350
170
2015 end
Saudi Aramco
Ras Tanur
Aramco
525,000 b/d
1,200
285
2016 end
Saudi Aramco
Jazan
Aramco
400,000 b/d
650
85
2017
合計
4,600
820
--------------
2012/3/5
ICB
Saudi Aramco focuses on aromatics in its
petrochemicals push
Saudi Aramco
plans to increase its focus on petrochemicals by converting refinery products
into aromatics, as
ethane availability in Saudi Arabia declines
A new wave of aromatics investments is under
discussion in Saudi Arabia. As part of a move further into petrochemicals,
state-owned
Saudi Aramco is building refineries with downstream aromatics production, as
well as exploring ways to add aromatics at its existing refineries.
Until now, Aramco's refineries have only
produced oil products. "For the first time, Saudi Aramco is deciding to include
petrochemicals units in its refinery projects," says Paul Hodges, chairman of
UK-based International eChem. "This is moving Saudi Arabia towards more of a
European/Asian/US model of petrochemicals production."
Aramco's first large-scale aromatics facility
will be located at a joint-venture refinery and petrochemicals complex it is
building with France's Total in Al-Jubail. Named Saudi Aramco Total Refining and
Petrochemical (Satorp), the project will have paraxylene (PX) and benzene
capacities of 700,000 tonnes/year and 140,000 tonnes/year respectively, and is
scheduled to begin operations in the second half of 2013.
Aramco also plans to include aromatics
production at refineries in Ras Tanura and Jazan, and is studying an aromatics
project linked to its refinery activities in Yanbu, on the Red Sea coast.
As well as building aromatics units at
refineries, Aramco is developing a petrochemicals project with US major Dow
Chemical, named
Sadara Chemical, and is planning an expansion at its existing Rabigh
Refining and Petrochemical (Petro Rabigh) joint venture with Japan's Sumitomo
Chemical. Aromatics are expected to be included in both projects.
15 September 2014 Reuters
Thai PTT, Saudi Aramco in joint Vietnam
petrochemical project
Thai energy company PTT has joined with
Saudi Aramco, the world's biggest oil producer, to
submit a proposal to the Vietnamese government to build a $22 billion refinery
and petrochemical complex in Vietnam, a senior PTT official said.
State-controlled PTT and Aramco will each own 40 percent of the project at
Binh Dinh's Nhon Hoi economic zone, with the
Vietnamese government holding the remaining 20 percent, Atikom Terbsiri, PTT
senior executive vice president, told reporters.
"Aramco will help supply crude to an oil refinery with
capacity of 400,000 barrels per day," Atikom said, adding that PTT-owned
Thai Oil and IRPC will
also join the project.
The Vietnamese's trade and industry ministry will consider the proposal, which
will be discussed with Thai Prime Minister Prayuth Chan-Ocha, who is due to
visit Southeast Asian countries in the coming months, Terbsiri said.
The project includes an olefins and aromatic petrochemical
plants with combined capacity of 5 million tonnes a year. It is expected
to take six to seven years before the complex is fully operational.
The completed project would help to meet Vietnam's domestic demand for oil
products and boost its exports.
PTT revised down the value of the project from a previous estimate of $28.7
billion after the Vietnamese government issued a licence for a new refinery in
northern Vietnam. The planned capacity of PTT's oil refinery has been cut by 40
percent from an initial 660,000 barrels per day.
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.
2016/12/22
Saudi Aramco, Indonesia’s
Pertamina Sign Refinery Expansion Agreement
Saudi Aramco and Indonesia’s state-owned oil
company Pertamina finalized on Thursday an agreement on a $5 billion
expansion of Indonesia’s largest oil refinery in Central Java.
The agreement was signed between Saudi
Aramco’s President and CEO Amin Al-Nasser and Pertamina’s President Dwi
Soetjipto at the company’s headquarters in Jakarta.
Nasser highlighted the important growth
witnessed in Indonesia, especially with the adoption of “an ambition
economic reform program”, which aims at increasing the size of investments
in infrastructure and energy.
He added that the agreement signed
between Saudi Aramco and Pertamina would allow the Saudi company to further
meet the increasing energy needs in the fast-growing region.
For his part, Soetjipto said: “The
agreement represents the two companies’ strong commitment to develop and
strengthen the energy infrastructure across the Indonesian territories, in
particular in refineries.”
The two companies will establish
a joint venture for the project, in which
Pertamina will own a 55% stake. The upgrade
will increase the refinery’s capacity from 348,000
barrels per day to 400,000 barrels per day.
Pertamina
Refinery Capacity
NO
Refining Unit
Capacity
( MBSD )
増設後
1
RU II Dumai
170.0
2
RU III Plaju
133.7
3
RU IV Cilacap
348.0
400.0
4
RU V Balikpapan
260.0
5
RU VI Balongan
125.0
6
RU VII Kasim
10.0
Pertamina refineries units operate 6
refineries with total capacity of 1,046.70 thousand barrels. Some
refineries as those in Refinery Unit III Plaju and Refinery Unit IV
Cilacap are integrated with Petrochemical plant and producing Purified
Terapthalic Acid (PTA) and Paraxylene. Some of the refineries produce
LPG product as those in Pangkalan Brandan, Dumai, Plaju, Cilacap,
Balikpapan, Balongan, and Mundu. LPG plants in Pangkalan Brandan and
Mundu are operationally separated from oil refinery and take gas as the
raw material.
Saudi Aramco will supply most of the
crude oil for the refinery. The company said that it has completed the
design phase, adding that the main architectural designs would be ready in
the first quarter of 2017. The project is scheduled to be completed in 2021.
The expansion will “help Pertamina to
enhance its downstream competitiveness,” said Soetjipto. It will also
increase the refinery’s capacity in derivatives such as petrochemicals.
The move follows a preliminary agreement
reached last year. Indonesia, a net oil importer, is expanding its
refineries to meet growing domestic demand. Saudi Arabia, meanwhile, has
been seeking stable revenue amid low crude prices and competition from other
oil producing countries.
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.
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.
2015年8月11日
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。
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。
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.
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.”
2018/7/19
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.
SATORP
2009年6月18日にTotal
とのJVのSaudi
Aramco Total Refining and Petrochemical Company(SATORP) の工事の発注先を決めた。
当初120億ドルと予想された建設費は96億ドルとなった。
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。
ディーゼルとジェット燃料の生産を最大化することを狙っており、これに加え、パラキシレン（年産70万トン）、ベンゼン（同14万トン）、ポリマーグレードプロピレン（同20万トン）を生産する。
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.
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.”
2018/12/15
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
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.
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.
Al-Jubail
Industrial City で稼動中の企業の概要は以下の通り。
青数字はSABIC関連、赤数字はその他。
⑥
SASREF
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.
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.
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。
New site identified for Saudi
Aramco-ADNOC refinery in India
The Indian government has identified a new site for the $44bn oil refinery
that is being built by three state-run firms along with Saudi Aramco and
ADNOC, according to Maharashtra chief minister Devendra Fadnavis.
The new site in Maharashtra is in Raigad district,
which is approximately 100km south of Mumbai, India's financial capital.
The refinery was initially meant to be built at Nanar,
a village in the Ratnagiri district of Maharashtra, about 400km south of
Mumbai. Refining & Petrochemicals Middle East reported that a group of
farmers refused to surrender their land as the region is famous for Alphonso
mangoes, cashew farms and fishing colonies. Because of the protests, the
regional government suspended the land acquisition.
Together, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan
Petroleum Corporation own 50% stake in the Ratnagiri Refinery and
Petrochemicals Ltd, the company that is building the refinery. The remaining
stake is owned equally by Saudi Aramco and ADNOC.
The 1.2mbpd refinery and integrated petrochemical project will provide India
steady fuel supply. Saudi Arabia’s and UAE's interest in the project is to
ensure regular buyers for their oil.
City and Industrial Development Corporation plans to acquire land from 40
villages in Raigad for the refinery.
Saudi Aramco と Abu Dhabi National Oil
Company (Adnoc) は2018年6月25日、インド西海岸での440億ドルの精油所建設計画に共同で投資する契約に調印したと発表した。
Saudi Aramco and Reliance Industries sign a non-binding letter of intent to acquire a 20% stake in the Oil-to-Chemicals (O2C) division of Reliance
Saudi Aramco and Reliance Industries Limited (RIL) today have agreed to a non-binding Letter of Intent (“LOI”) regarding a proposed investment in the Oil to Chemicals (O2C) division comprising the Refining, Petrochemicals and
fuels marketing
businesses of RIL.
Saudi Aramco’s potential 20% stake is based upon an Enterprise Value
of US$
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.
2020/2/21
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.
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。
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
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.
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。
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.
2023/6/24
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.
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。
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.
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。 浙江省政府が保有する9%を取得したとされる。（浙江石油化工では中国の石油会社か外資に出資を求めようとしたが、成功せず、一時的に州政府が保有していた。）
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."
Reuters
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.
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.
Saudi Aramco is in discussions with U.S. LNG
developers to buy a stake in one planned project and sign a long-term LNG
offtake deal from another proposed export facility, Reuters reports, citing
sources close to the talks.
Aramco, the world’s top crude exporter and the world’s biggest oil firm, has
been seeking a greater role on the global LNG market as it plans to ramp up
its natural gas production and trading business.
Last autumn, Saudi Aramco entered the
global LNG business by signing a deal to buy a
minority stake in LNG company MidOcean Energy, which was in the
process of acquiring interests in four Australian LNG projects.
アラムコのアミン・ナセル（Amin H. Nasser）社長兼最高経営責任者（CEO）は、次のように述べました。「アラムコにとって初のLNGへの国際投資となる今回の株式取得を通じて、EIGとの戦略的パートナーシップを強化できることを嬉しく思います。世界はエネルギー転換の道を歩み続けており、ガスはさまざまな産業において重要な燃料および原料となっており、LNGは需要主導の力強い成長が見込まれています。当社は、安全で利用しやすく、より多くの再生可能エネルギーを求める世界の高まるニーズを満たすために、ガスが重要になると確信しています」
アラムコのアップストリーム担当プレジデントのナシル・K・アルナイミ（Nasir K. Al-Naimi）は、次のように述べました。「これは、世界をリードするLNGプレーヤーになるというアラムコの戦略における重要な一歩です。当社は、構造的かつ長期的な成長が見込まれるこの市場に大きなチャンスがあると考えています。ミッドオーシャンエナジーは、増大するLNG需要に対応するための十分な設備を備えており、この戦略的パートナーシップは、主要な国際プレーヤーと協力して世界レベルで新たな機会を特定し、切り開くという当社の意欲を反映しています」
ミッドオーシャンエナジーのデ・ラ・レイ・ベンター（De la Rey Venter） CEOは、次のように述べました。「ミッドオーシャンエナジーにとって、アラムコを主要株主および戦略的パートナーとして迎えることができて光栄です。当社は、LNGが世界的なエネルギー転換を実現する不可欠な要素であるという信念を共有しており、世界のLNG産業は今後何十年にもわたって強固なファンダメンタルズを持つと信じています。相乗的なパートナーシップは、ミッドオーシャンエナジーがビジネスを展開し、成長し、繁栄していくための核となるものです。アラムコには、長期的な思考をDNAに持ち、永続的な協力関係への揺るぎないコミットメントを持つパートナーがいます。当社はともに多くの新しい機会を追求することを楽しみにしています」
Going into LNG trading would be
another lucrative business for the Saudi oil giant, considering
that LNG demand is only set to grow in the coming years as
Europe ditches Russian gas and Asia looks to use more natural
gas instead of coal.
Aramco is currently in talks with
U.S. company Tellurian to buy a stake in
its Driftwood LNG export facility near Lake Charles,
Louisiana, according to Reuters’ sources, who added that
representatives of the Saudi oil giant visited the project site
three times this year.
Tellurian, which has
struggled for years to see its project through the finish line,
is said to be looking to take the final investment decision for
the first two trains of Driftwood LNG before the end of this
year.
The project, which has all
the permits and is not affected by President Joe Biden’s pause
on permitting of new LNG export facilities, received earlier
this year a three-year extension of the construction permit from
the Federal Energy Regulatory Commission (FERC).
Separately, Saudi Aramco is
also in talks with U.S. LNG developer NextDecade to potentially
seal a long-term LNG purchase deal from a proposed fifth train
at the Rio Grande project, according to Reuters’ sources.
Aramco will face stiff
competition from other major firms in the Middle East in its
efforts for international LNG expansion. Abu Dhabi’s ADNOC, for
example, has
just announced two deals to buy into LNG projects overseas,
including an 11.7% stake in Phase 1 of NextDecade’s Rio Grande
LNG in Texas, in its first strategic investment in the U.S.
Aramco and Sempra announce Heads of
Agreement for equity and offtake from Port Arthur LNG Phase 2
Aramco,
one of the world’s leading integrated energy and chemicals
companies, and Sempra, one of North
America’s leading energy infrastructure companies, today announce
that their respective subsidiaries have executed a non-binding Heads
of Agreement (HoA) for a 20-year sale and
purchase agreement (SPA) for liquefied natural gas (LNG)
offtake of 5.0 million tonnes per annum (Mtpa)
from the Port Arthur LNG Phase 2 expansion project. The HoA
further contemplates Aramco’s 25%
participation in the project-level equity of Phase 2.
The parties expect to execute a
binding LNG SPA and definitive equity agreements with terms
substantially equivalent to those in the HoA, with the SPA and
equity agreements subject to a number of conditions.
Nasir K. Al-Naimi, Aramco
Upstream President, said: “We are excited to take this
next step into the LNG sector. As a potential strategic partner in
the Port Arthur LNG Phase 2 project, Aramco is well placed to grow
its gas portfolio with the aim of meeting the world’s growing need
for lower-carbon sources of energy. This agreement is a major step
in Aramco’s strategy to become a leading global LNG player.”
Jeffrey W. Martin, Sempra
Chairman and CEO, said: “The planned expansion of Port
Arthur LNG would help facilitate the broad distribution of U.S.
natural gas across global energy markets. By expanding the global
reach of the Port Arthur LNG facility, we have the opportunity to
improve energy security, while providing a lower-carbon alternative
to coal for electricity production.”
Port Arthur LNG is a natural gas
liquefaction and export terminal in Southeast Texas with direct
access to the Gulf of Mexico. The Port Arthur LNG Phase 1 project is
currently under construction and consists of trains 1 and 2, as well
as two LNG storage tanks and associated facilities. The Port Arthur
LNG Phase 2 project is a competitively positioned expansion of the
site to include the addition of up to two trains capable of
producing up to 13 Mtpa.
At the heart of Sempra
Infrastructure’s flagship Port Arthur Energy Hub, Port Arthur LNG
has potential to expand to a total of eight trains, which would
position it as one of the world’s most significant LNG export
facilities. The facility is expected to play an important role in
enhancing global energy security and resilience. Moreover, Sempra
Infrastructure is actively advancing infrastructure projects within
the Port Arthur Energy Hub, addressing both the rising demand for
lower-carbon fuels and
reduction. This includes the
proposed Titan Carbon Sequestration project.
2024/7/1
Saudi Arabia announces discovery of major oil and natural gas fields
Ministry of
Energy, Saudi Arabia announced the discovery of new oil and natural gas
fields in the Eastern Province and the Empty Quarter.
“Saudi
Aramco has discovered two unconventional oil fields,
one Arabian light oil reservoir,
two natural gas fields, and
two natural gas reservoirs in the Eastern
Province and the Empty Quarter,” said Minister of Energy Prince Abdulaziz
bin Salman.
Al-Ladam field for unconventional oil was
discovered in the Eastern Province after the flow of very light Arabian oil
from the Ladam-2 well at a rate of 5100 barrels per day, accompanied by
about 4.9 million standard cubic feet of natural gas per day.
The
discovery of Al-Farouq unconventional oil field
was confirmed in the Eastern Province after the Arabian very light oil
flowed from Al-Farouq-4 well at a rate of 4557 barrels per day, accompanied
by about 3.79 million standard cubic feet of gas per day.
The
Unayza B/C reservoir was also discovered in the
Mazaleej field in the Eastern Province, after
Arab light oil flowed from the Mazaleej-62 well at a rate of 1780 barrels
per day, accompanied by about 0.7 million standard cubic feet of gas per
day.
The minister
said that Al-Jahaq natural gas field was
discovered in the Empty Quarter after natural gas flowed from the Al-Arab-C
reservoir in the Al-Jahaq-1 well at a rate of 5.3 million standard cubic
feet per day,
and from Al-Arab-C reservoir in the same well at a rate of 1.1 million
standard cubic feet per day. It was also confirmed the discovery of
Al-Katuf field in the Empty Quarter after
natural gas flowed from Al-Katuf-1 well at a rate of 7.6 million standard
cubic feet per day,
accompanied by about 40 barrels per day of condensate.
The
Hanifa reservoir was also discovered in the
Asikra field in the Empty Quarter after natural gas flowed from the Asikra-6
well at a rate of 4.9 million standard cubic feet per day. It flowed into
the same well from the Al-Fadhili reservoir
at a rate of 0.6 million standard cubic feet per day, accompanied by about
100 barrels per day of condensate.
Oct 16, 2024
Aramco cancels
Saudi chemical project as it focuses on Asia
Saudi Aramco has
canceled plans to build a refinery and chemicals
project in Saudi Arabia and is reviewing three
others as it evaluates spending plans
with a focus
on expanding in Asia.
Aramco and its unit
Sabic will not go ahead with the planned 400,000
barrel-a-day facility at Ras Al Khair on Saudi
Arabia’s Gulf coast, and a proposal to move the
project to Jubail has also been shelved, according
to people with knowledge of the situation.
2022/11/27
SABIC to study
oil-to-chemicals project in
Ras Al-Khair
SABIC, a global leader in
diversified chemicals, announced
on Wednesday its intention to
study the establishment of
a complex
to convert oil and liquids into
petrochemicals in Ras Al-Khair
in the Kingdom of Saudi Arabia.
The complex is expected to
convert
400,000 barrels per day of oil
into chemicals.
This project, which is part of
SABIC's strategic growth plans,
will contribute to the
realization of the Kingdom’s
program to convert oil and its
liquids into chemicals.
Reflecting on this announcement,
Eng. Abdulrahman Al-Fageeh,
SABIC (A) CEO, said that “SABIC
will start studying the project
in cooperation with the Saudi
Ministry of Energy and Saudi
Aramco, to achieve the desired
goal of maximizing the benefits
of the hydrocarbon resources for
the company's shareholders,
strengthening SABIC’s global
position, developing its human
capabilities, preserving its
technical know-how, supporting
its customers locally and
globally, and contributing to
achieving the goals of Saudi
Vision 2030.”
SABIC also affirmed its
commitment to continue
developing crude oil to
chemicals technologies, which
contributes to increasing cost
efficiencies and value creation
opportunities in the energy and
petrochemicals industry on a
larger scale.
The cancellation
is a sign Aramco is recalibrating its spending
on
chemicals to Asia, where it’s pursuing a series of
deals in China that would also guarantee long-term
demand for Saudi crude.
Aramco sees the
use of goods such as plastics outlasting the growth
in consumption for gasoline and diesel amid the
energy transition, with much of the expansion in
chemicals likely coming from Asia.
Uncertainty over
the strength of demand in Saudi Arabia — where
Aramco is already expanding other chemical sites —
is also a factor forcing the company to reconsider
spending on mulitbillion-dollar infrastructure
projects, according to the people, who asked not the
identified because the information isn’t public.
Three planned
chemical facilities in Jubail and at Yanbu on the
Red Sea are being checked to determine whether the
company will go ahead with the investments, the
people with knowledge of the plan said.
"Aramco intends
to continue to grow its liquids-to-chemicals
business, with a goal to increase its throughput in
integrated refining and petrochemicals complexes to
up to 4 million barrels per day by 2030,” the
company said in an emailed response to questions.
"We continue to optimize our investments in our
global downstream portfolio and updates to specific
projects will be made at the appropriate time.”
The review is
also the latest indication of Saudi Arabia grappling
with building vast industrial sites.
The kingdom wants
to develop manufacturing and technology industries,
which could use the chemicals produced locally.
But it is
reviewing some of the wider investment plans as it
tries to cope with the scale of Crown Prince
Mohammed Bin Salman’s economic makeover push.
Aramco’s chemical
unit Sabic, in which it owns 70% stake, first
announced plans for the Ras Al Khair refining and
chemical facility in November 2022 and said a year
later that the two companies were still working on
the project.
Aramco is going
ahead with the separate expansion of a refinery that
it operates with TotalEnergies SE in Jubail.
The Saudi company
is in talks to buy a 10% stake in China’s Hengli
Petrochemical 恒力石化 and is seeking similar deals with two
other Chinese companies.
It closed a
separate $3.4 billion deal for a stake in Rongsheng
Petrochemical last year.
荣盛石化股份有限公司
Chief Executive
Officer Amin Nasser has also mentioned South Korea
and India as potential investment destinations.
Oil-rich Middle
Eastern states have long produced some
petrochemicals that go into making products like
plastics and packaging as a way to make use of their
cheap energy supplies.
They’ve been
selling energy to chemical makers in Japan, South
Korea and China for years but are now trying to get
a bigger share of producing those chemicals on their
own in the big Asian markets.
