Technip-Coflexip is understood to have submitted the lowest price for the Riyadh hydrotreater, in the range of $160 million-170 million. The unit will have capacity of 45,000 barrels a day (b/d). Tecnicas Reunidas is understood to be the low bidder for the larger, 95,000-b/d Yanbu unit at about $220 million. Industry sources say that Canada's SNC Lavalin has submitted one price for the two contracts. However, it is understood that Aramco would prefer to award two separate contracts.

Other bidders for the work are Germany's Uhde, Italy's Snamprogetti and Japan's JGC Corporation. Industry sources say all the offers are above Aramco's planned budget for the projects, which has led to some delays in the award of both contracts.

The units are scheduled to come on stream in the last quarter of 2005, with full production slated for early 2006. The US' Foster Wheeler is providing project management consultancy (PMC) services on the scheme.

The project will enable the refineries to switch to lower-sulphur diesel production in 2006 as part of a government initiative to improve the air quality in major cities.