Bids in for Saudi Aramco's $7bn Jizan refinery

17 September 2012

International contractors have submitted bids for packages at facility in the south of Saudi Arabia

Saudi Aramco has received bids for the engineering, procurement and construction (EPC) packages at the $7bn Jizan refinery project in the south of Saudi Arabia.

The bids were submitted on 15 September after the initial deadline was extended by one month after contractors requested more time to formulate bids.

“The bids for the major packages have gone in now, but it will take some time to work out exactly who has bid for what,” says a contracting source based in Saudi Arabia. “A lot of contractors were prequalified to bid on multiple packages so it will be interesting to see how many decline to bid on certain contracts in order to concentrate on winning others.”

Four contractors were prequalified for all the packages at Jizan and they are:

  • Daelim Industrial (South Korea)
  • GS Engineering & Construction (South Korea)
  • Saipem (Italy)
  • SK Engineering (South Korea)

Other contractors prequalified for the Jizan project include:

  • CB&I (US)
  • Chiyoda (Japan)
  • CTCI (Taiwan)
  • Hyundai Engineering & Construction (South Korea)
  • JGC Corporation (Japan)
  • Petrofac (UK)
  • Petrol Steel (local/Singapore)
  • Samsung Engineering (South Korea)
  • Tecnicas Reunidas (Spain)

Sources in the kingdom also say that two of the original packages have now been cancelled and will probably be merged into the proposed integrated gasification combined cycle (IGCC) power plant package. Those two packages cover sulphur recovery and treatment facilities as well as the flue-gas desulfurisation.

The remaining packages being tendered include:

  • Crude distillation unit and vacuum distillation unit
  • Hydrocracker
  • Marine terminal facilities
  • Naphtha and aromatics, which includes:
    Naphtha hydrotreater
    Reformer/catalyst regeneration reformers
    Paraxylene complex
    Benzene extraction unit
  • Sulphur recovery unit/amine treating unit
  • Two tank farms
  • Utilities

MEED reported in March that packages on the Jizan scheme were offered on a national and international basis, meaning that some of the work can be carried out overseas by companies not fully registered to work in Saudi Arabia.

The refinery will have a capacity of 400,000 barrels a day (b/d) when completed in 2017 and will be wholly owned by Aramco. Due to the distance between the oil fields and Jizan, crude and the subsequent refined products will not be transferred by pipeline, but will enter and leave exclusively through the marine terminal.

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