Aramco awards construction contracts on $10bn Yanbu refinery

29 July 2010

Eight engineering, procurement and construction contracts signed on Red Sea coast scheme

State energy giant Saudi Aramco has awarded eight of the main construction contracts on its estimated $10bn Yanbu refinery project.

The company signed the contracts with seven international engineering firms on 28 July, it said in a statement released on the same day. Aramco did not comment on the value of the engineering, procurement and construction (EPC) deals.

The contracts were awarded to:

  • Coker block – Tecnicas Reunidas (Spain)
  • Gasoline process unit, hydrocracker – Daelim Corporation (South Korea)
  • Crude distillation unit – SK Engineering & Construction (South Korea)
  • Tank farm - Engineering for the Petroleum & Process Industries (Enppi) (Egypt)
  • Offsite pipelines – Dayim Punj Lloyd (local/Indian)
  • Onsite pipeline relocation – Rajeh H al-Marri (Saudi Arabia)
  • High voltage electrical package – Saudi Services (Saudi Arabia)

The local Abdulraman al-Shalawi Establishment was awarded the site preparation package on the refinery in January.

Firms submitted bids for the EPC contract to build a solids handling unit on 6 July after a series of delays to the tender process. They had originally been asked to submit cost and engineering proposals for the package in February. Firms that bid on this deal include:

  • Daelim Industrial (South Korea)
  • GS Engineering & Construction (South Korea
  • Hyundai Engineering & Construction (South Korea)
  • JGC Corporation (Japan)
  • Lurgi (Germany)
  • Petrofac (UK)
  • Saipem (Italy)
  • Techint (Italy)
  • Thyssenkrupp (Germany)

Earlier in July, MEED reported that Aramco was pushing ahead with its plans to build the 400,000 barrel a day (b/d) export refinery on its own. The project was delayed when the US’ ConocoPhillips, Aramco’s partner on the scheme, decided to pull out.

Aramco has set up a new company, Red Sea Refining Company, to oversee the project.

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