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Bids submitted on Saudi Aramco Jazan Refinery

Jizan refinery EPC bids deadline closed on Sept 15th

Saudi Aramco is willing to proceed now without further delay with the $7 billion Jazan refinery project.

Also called Jizan, the Jazan refinery is the master piece of Saudi Arabia Jazan scheme.

To develop the economy and wealth in southern Saudi Arabia, close to the Yemen border, the Saudi Authorities selected Jazan on the Red Sea to build the $27 billion Jazan Economic City (JEC).

If Saudi Aramco is leading this Jazan scheme with the refinery, the Jazan Economic City will be entitled to host foreign investors, likely from Asia, who want to benefit from the competitive feedstock provided by the refinery.

Since Saudi Arabia produces more and more heavy crude oil, the Jazan refinery should be able to process Arabian Heavy crude and Arabian Medium crude oil.

The Jazan refinery is also intended to meet all the international standards of reduced CO² and ultra low sulfur emissions (10 parts per million).

In addition to high performance gasoline and ultra low sulfur diesel, the Jazan refinery will produce benzene to feed potential future aromatic petrochemical complex.

In order to speed up the construction of the Jazan refinery, the Saudi Authorities gave mandate to Saudi Aramco to include in the project, the Jazan Port and a Power Generation plant as part of the Jazan Economic City.

The power plant will supply energy to the whole integrated refinery and petrochemical complex while the Port will facilitate the export of the hydrocarbons production from Jazan Economic City.

As part of the $7 billion capital expenditure of the Jazan refinery project, Saudi Aramco includes:

 – $4 billion for the 400,000 b/d (20 million t/y) refinery

 – $2.5 billion for the 2,600 MW Power generation plant

 – $1.4 billion for the port construction

Saudi Aramco is planning to contract the power generation facility on Build-Own-Operate-and-Transfer (BOOT) basis.

Jazan port should have deep waters to accept large size export crude oil tankers.

KBR completed FEED and provides PMS on Jizan

Since KBR acquired Abdulhadi and Al-Moaibed Consulting Engineering Co. (AMCDE), a Saudi owned professional engineering company to form KBR-AMCDE, KBR could be pre-qualified by Saudi Aramco according to the General Engineering Services Plus (GES+) contract to provide Saudi Aramco with front end engineering and design (FEED), detailed design and project management consultancy (PMC) services.

Being a GES+ qualified engineering company, KBR performed and completed the FEED for the Jazan refinery.

In addition KBR has been appointed in 2011 to support Saudi Aramco with project management consultancy services in beginning with the preparation of the engineering, procurement and construction (EPC) packages and corresponding calls for tenders.

KBR scope of work was also including the costs and schedule estimates.

Jazan refinery to be awarded in 11 EPC packages

From the FEED performed by KBR, the Jazan Refinery project is designed in 11 main EPC packages to produce:

 – 75,000 b/d of gasoline

 – 100,000 to 160,000 b/d of ultra low sulfur diesel

 – 160,000 to 220,000 b/d of fuel oil

In respect with the great number of EPC packages, only four companies were qualified to bid all the 11 main ones:

 – Daelim Industrial from South Korea

 – GS Engineering & Construction from South Korea

 – Saipem from Italy

 – SK Engineering from South Korea

Then eight more engineering companies were supposed to submit tenders:

 – CB&I Lummus from USA

 – Chiyoda from Japan

 – CTCI from Taiwan

 – Hyundai Engineering & Construction from South Korea

 – JGC from Japan

 – Petrofac from UK

 – Petrol Steel from Singapore

 – Samsung Engineering from South Korea

All these engineering companies were due to submit their offers by September 15th 2012.

In addition to the local economical and social aspects of the project in the southern Saudi Arabia, the Jazan Refinery project is critical for Saudi Aramco to meet its downstream strategic goal to reach 3.5 million b/d refining capacity by 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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