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Yanbu refinery contracts to be awarded in 2010

Hydrocarbon Engineering,

After relaunching bidding for contracts for the Yanbu refinery joint venture, Saudi Aramco and ConocoPhillips are planning on awarding major contracts in May 2010.

Bidding resumed

The original bidding was cancelled as both companies were looking to save money on contracting costs and materials. The original costs estimation was approximately US$ 12 billion but was later estimated at approximately US$ 6 billion. Market improvements and a drop in costs encouraged the joint venture to resume bidding in late June 2009. Prequalified companies have already been issued invitations for early work and the major construction packages. Some of the early work contracts could be awarded in November this year. Bidding for other construction projects closes in January 2010.

Contracts available

There will be 11 engineering, procurement and construction (EPC) contracts available. Saudi Aramco and ConocoPhillips will also award tank farm, pipeline, utility, solid handling and electricity contracts. Four refinery process packages will also be available including a coking unit, crude facility, gasoline unit and hydrocracker. Completion of the refinery is scheduled for 2014.

Contract awarded

KBR Inc. has been awarded an early EPC contract from the joint partnership. KBR will be responsible for utilities and interconnecting systems and pipe racks at the Yanbu facility. KBR has already completed the front end engineering and design for the refinery, as awarded by Saudi Aramco.

Big benefits

The Yanbu refinery will utilise state of the art technologies and contribute to Saudi Arabia’s plan to increase refining production by 1.6 million bpd. The Yanbu facility will provide refined products for the global and domestic markets and create job opportunities in the surrounding area. The refinery is being designed to process Arabian heavy crude in to high quality ultra low sulfur products.

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