May 16, 2008 at 12:32 pm #3630
Saudi Aramco and ConocoPhillips Confirm Yanbu Export Refinery Project
Friday, May 16, 2008 DHAHRAN, Saudi Arabia – The Saudi Arabian Oil Company (Saudi Aramco) and ConocoPhillips (NYSE:COP) 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.
The companies have completed the initial evaluation and front end engineering and design (FEED) outlined in the May 2006 Memorandum of Understanding (MOU). The next phase will include the solicitation of bids, commitment of long lead items and site preparation work.
“We’re pleased to be entering the next stage of development for the Yanbu export refinery project, together with our partner, ConocoPhillips,” said Khalid G. Al-Buainain, Saudi Aramco senior vice president for Refining, Marketing & International. “This facility will bolster the Kingdom’s refining capacity, and provide additional quantities of high quality refined products for global and domestic markets. This partnership is important to Saudi Aramco, and this initiative is an important aspect of our company’s expanding downstream business portfolio,” he added.
“ConocoPhillips is pleased to continue working with Saudi Aramco towards adding needed capacity to the international refining system,” said Jim Gallogly, ConocoPhillips executive vice president of refining, marketing, and transportation. “The Yanbu project fits well with the company’s overall strategy to invest in projects that expand our global refining presence and provide significant new supplies of clean products in an environmentally sound manner.”
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.
ConocoPhillips is an integrated international energy company with interests around the world. For more information, go to http://www.conocophillips.com.
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 proven reserves of 260 billion barrels of oil, the largest of any company in the world, and manages the fourth-largest gas reserves in the world.
Additional information about Saudi Aramco can be found on the following Web site: http://www.saudiaramco.com.
May 16, 2008 at 12:34 pm #6847
Here is a news update on the Saudi-COP JV Yanbu Refinery (& Coker) but there no details on a Coker going in at Yanbu Refinery yet and COP does not have it on their coker license list……. yet (but it is still ~ in Planing stage, although they have passed the FEED stage).
Looks like the on-line date is ~ 2013 now and cost $12B (nearly double since 2006 MOU).
<There is also a Saudi-Total JV Jubail Refinery (& Coker) with news update out today – FW will be doing the coker design pkg for this project which is now online ~2012 and cost $10 B estimated by Total CEO.>
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