Bids in for $1bn Luberef project management contract

15 October 2012

Engineering consultancies line up for deal to oversee Saudi Aramco’s lubricant joint venture in Yanbu

The Saudi Aramco Lubricating Oil Refining Company (Luberef) has received bids for the project management consultancy (PMC) at its $1bn expansion in Saudi Arabia.

The Yanbu-based refinery received submissions from engineering consultancies on 7 October and these are now under evaluation.

The bidders aiming to secure the contract include:

  • Foster Wheeler (US)
  • Jacobs Engineering (US)
  • JGC Corporation (Japan)
  • KBR (US)
  • Mustang Engineering (US)
  • SNC Lavalin (Canada)

The scope of services required for the scheme includes the forming of a project management team that will oversee the work of the engineering, procurement and construction (EPC) contractors and subcontractors on site. All work carried out by the EPC contractors and subcontractors will have to comply with Saudi Aramco’s and Luberef’s procedures and standards.

MEED reported in early October that South Korea’s Samsung Engineering and Hyundai Engineering & Construction were the two frontrunners for the EPC contract.

The scope of the expansion includes the construction of a 23,000-barrel-a-day (b/d) lube hydrocracker and catalytic ISO-dewaxing complex, which will include hydrogen manufacturing, sour gas absorption, sulphur recovery and prilling units.

Luberef also plans to increase its vacuum distillation unit (VDU) capacity to 40,000 b/d, from 26,000 b/d and increase its propane deasphalting from 6,500 b/d to 12,500 b/d, as well as increase the asphalt capacity to 12,000 b/d.

Luberef is a 70:30 joint venture of Saudi Aramco and the local Jadwa Investment.

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