Saudi Aramco sets timeline for $7bn Jizan

16 February 2012

Tenders expected in April and awards in December for refinery project in south of kingdom

Saudi Aramco has released prequalification documents that will allow contractors to bid for engineering, procurement and construction (EPC) contracts for packages at its $7bn Jizan refinery project in Saudi Arabia.

Companies wanting to bid on the various packages for the contract need to inform Aramco by 13 February.

“The [Jizan refinery] project is moving ahead as planned and proves that Aramco do want to fast-track the project,” says a contracting source based in Saudi Arabia. “There is a definite timeline in place now, which is good for contractors as it allows us to plan our year properly.”

The tenders for the various packages are due to be released by Aramco on 15 April with bid submissions due for 15 August and awards made on 15 December.

The companies who are requesting to bid for the various packages on the scheme include:

  • Daelim Industrial (South Korea)
  • GS Engineering & Construction (South Korea)
  • Hyundai Engineering & Construction (South Korea)
  • JGC Corporation (Japan)
  • Petrofac (UK)
  • Saipem (Italy)
  • Samsung Engineering (South Korea)
  • SK Engineering & Construction (South Korea)
  • Technip (France)
  • Tecnicas Reunidas (Spain)

The scope of works for the Jizan scheme will include the construction of a 400,000 barrel-a-day (b/d) hydroskimming refinery, with an associated marine terminal.

Jizan is located in the south of the kingdom and is therefore a significant distance from Saudi Arabia’s oil-producing areas. The project was initially planned to become the first independent oil refinery in the kingdom.

Due to the distance between the oil fields and Jizan, crude and the subsequent refined products will not be transferred by a pipeline, but will enter and leave exclusively through the marine terminal.

Aramco is ramping up its domestic refining capacity with a number of multi-billion schemes across the country. As well as the Jizan project, 400,000 b/d refineries are being built at Jubail in the Eastern Province and at Yanbu on the Red Sea coast.  

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