Saudi Arabias Rabigh Refining & Petrochemical Company (PetroRabigh) has awarded a construction contract to Italys Saipem for the second-phase expansion project at the Rabigh petrochemicals plant.
The 30-month deal to expand PetroRabighs chemicals complex is worth SR782m ($208.5m). It includes a plant to process and recover vanadium and a unit to dispose of caustic soda, according to the company.
The contract also includes other facilities to handle and store chemicals, the company said in a statement to the Saudi Stock Exchange (Tadawul), where its shares are traded.
PetroRabigh, a joint venture between the worlds biggest oil exporter, Saudi Aramco, and Japans Sumitomo Chemical, raised $5.2bn to support the second-phase expansion project. Japans Sumitomo Mitsui Banking Corporation and the local Sabb were the financial advisers on the transaction. The total project cost is estimated at about $8.1bn.
The project involves PetroRabigh expanding its ethane cracker and building a new aromatics complex that will enable it to process 30 million cubic feet a day (cf/d) of ethane and about 3 million tonnes a year (t/y) of naphtha as a major feedstock to produce chemicals.
PetroRabigh tendered three engineering, procurement and construction (EPC) packages in October 2015 and received bids from international companies in February.
The two packages cancelled are:
- Polyols production unit capacity of 220,000 t/y of polyether polyols
- Sulphur recovery unit capacity of 106,000 t/y of sulphur
PetroRabigh is still assessing bids on a third package to build a naphtha processing unit with the capacity to produce 17,000 barrels a day (b/d) of clean fuels.
Italy-based Tecnimont has submitted the low bid for this package, according to a source. Other bidders are thought to include Taiwan-based CTCI, South Koreas Daelim, Spains Intecsa Industrial and Tecnicas Reunidas, and India-based Larsen & Toubro.