Saudi to develop world’s largest Crude to Chemical project

Aberdeen : British energy services provider Wood Group has been selected by Saudi Aramco and SABIC to develop the world’s largest fully integrated crude oil to chemicals (COTC) complex in the Kingdom of Saudi Arabia. 

The deal, according to reports, is for providing front end engineering design (pre-FEED and FEED) and project management services during the engineering, procurement and construction (EPC) phase. 

The $20 billion complex, according to World Oil, is expected to process 400,000 bpd and approximately nine million tons of chemicals and base oils annually.

“We are proud to have been selected to be a contractor with Saudi Aramco and SABIC to deliver this significant greenfield onshore facility that will be a first for Saudi Arabia and among the first in the world to integrate the refinery and chemical process in this way,” Robin Watson, Wood’s chief executive, said. 

The agreement follows the signing of a Memorandum of Understanding in November 2017 between Saudi Aramco and SABIC to assist in bringing the mega-project to its next stage of development, an Arab News report said.  The scope of the contract, reportedly, includes the finalization of the project, selection of technology providers, updating project economics and performing the front-end engineering design.

“This offers the Kingdom solid opportunities to produce chemicals as a feedstock as part of Saudi Aramco’s efforts to maximize return on investments in hydrocarbon resources,” President and CEO of Saudi Aramco, Amin H. Nasser told Arab News. 

“This is an important milestone in a partnership that we are proud of between Saudi Aramco and Sabic, a partnership that is in line with Saudi Aramco’s strategy for business integration, adding value and tackling global growth opportunities in chemicals,” the report quoted him as saying. 

The project will generate the world’s highest proven yield conversion rate of oil to chemicals in a competitive and sustainable way, Vice Chairman and CEO of SABIC Yousef Al-Benyan told Arab News.

The contract is expected to continue through to the start of operations in 2025.