Saudi Aramco and SABIC have awarded Wood a contract for project management and front-end engineering design (FEED) to advance the successful implementation of their fully integrated, strategic crude oil tochemicals (COTC) complex in the Kingdom of Saudi Arabia.
The signing of this contact follows the signing of a Memorandum of Understanding (MoU) in November 2017 between Saudi Aramco and SABIC to assist in bringing the mega-project to its next stage of development. The scope of the contract primarily includes the finalisation of the project scope, selection of technology providers, updating project economics and performing the front-end engineering design (FEED).
By 2030, the COTC complex is expected to be a significant contributor to the Kingdom’s gross domestic product (GDP) and play a key role in helping the continued economic diversification away from crude exports to higher value industrial products. Consistent with the Kingdom’s ‘Vision 2030’, this project will support the creation of a further diversified world-leading downstream sector in Saudi Arabia.
Amin H. Al-Nasser, President and CEO of Saudi Aramco, said: “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. It is also important to mention that this project will achieve a direct conversion rate from COTC of almost 50%, a globally unprecedented rate. This offers the Kingdom solid opportunities to produce chemicals as a feedstock as part of Saudi Aramco’s efforts to maximise return on investments in hydrocarbon resources.”
Nasser added: “The complex will have a great economic impact and will create thousands of direct and indirect job opportunities for Saudis. In addition, the complex offers synergy and conversion of the strategic goals and objectives of Saudi Aramco and SABIC. It will be capable of maximising chemical yield, recycling byproducts, optimising resources and driving efficiencies of scale.”
Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: “I am very happy and optimistic to see the timely delivery of this key milestone in the strategic COTC project, which through an innovative configuration will generate the world's highest proven yield conversion rate of oil to chemicals in a competitive and sustainable way.”
Al-Benyan added, “The COTC technology will enable us to squeeze as much value as possible from our feedstock, thereby benefitting our shareholders, our customers and the planet. The COTC project will spur on a new era of industrial diversification, job creation and technology development in Saudi Arabia.”
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