State oil company Saudi Aramco and chemicals giant Sabic have signed a memorandum of understanding (MoU) for a $25bn oil to chemicals complex.

The two firms signed the MoU on 26 November for the complex to convert crude oil to chemicals.

MEED reported in October that Aramco and Sabic had received project management consultancy (PMC) bids for the planned oil to chemicals scheme.

 Bidders for the PMC contract included: KBR (US), Fluor (US), Jacobs Engineering (US), WorleyParsons (Australia) and Amec Foster Wheeler (UK), according to a report in Reuters.

Under existing plans, the project will convert the 235,000 barrels a day (b/d) Yanbu refinery into an integrated refinery and petrochemicals complex.

The integrated petrochemical units are likely to include a steam cracker, mixed xylene, cumene, isobutene and petroleum coke, pitch facilities and an aromatics complex.

Presently, the Yanbu refinery produces liquefied petroleum gas (LPG), gasoline, jet fuel, diesel oil and fuel oil.

The hydroskimming facility has a capacity of 170,000 b/d