Petro-Rabigh delays consultancy award again

25 August 2008

The local/Japanese Rabigh Refining & Petrochemical Company (Petro-Rabigh) has again delayed the award of the consultancy contract covering the second-phase expansion of its integrated refinery and petrochemical complex at Rabigh on the Red Sea coast.

The contract, which covers the front-end engineering and design and project management of the multi-billion-dollar expansion, was originally due to have been awarded by the already-postponed deadline of late June. However, the client is now understood to be looking at awarding the deal by October (MEED 27:5:08).

It is unclear why the client decided to delay the process further, but it is thought it now wants to complete its $10bn first phase before starting work on the design of the expansion.

Two contractors - Italy’s Tecnimont and Japan’s JGC Corporation - are competing for the consultancy deal.

The first phase of Petro-Rabigh is due to come on stream later this year. A joint venture of Saudi Aramco and Japan's Sumitomo Chemical Company, it is the first project in the region to integrate an existing refinery with a petrochemicals complex.

The second phase involves the expansion of the ethane cracker and aromatics complex, and the construction of at least 15 downstream chemical production plants (MEED 17:1:08).

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications