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Saudi Aramco increases scope of work for Ras Tanura refinery

Saudi Aramco extends Jacobs’s FEED on $3 billion Ras Tanura Refinery Clean Fuel and Aromatics project

In May 2011 Saudi Aramco awarded the Front End Engineering and Design (FEED) to Jacobs ZATE for the Ras Tanura Refinery Clean Fuel and Aromatics project.

Located in the Eastern Province of Saudi Arabia, along the Arabian Gulf, Ras Tanura is the most complex Saudi Aramco’s refinery with capacities of:

 – 550,000 b/d of crude oil distillation

 – 960,000 b/d of crude oil stabilization

 – 107,000 b/d for catalytic reforming

 –  305,000 b/d of NGL processing facilities

 – 5.8 million barrels of crude oil storage facilities with a 75 tanks farm

From this base, the Ras Tanura Refinery Clean Fuel and Aromatics project is defined to meet Saudi Aramco double target to:

 – Meet international standards for diesel and gasoline to produce clean fuels with low sulfur content and small ppm emissions

 – Develop its downstream activities with high added value petrochemical products to reduce Saudi Arabia reliance on crude oil and natural gas prices fluctuations.

When Saudi Aramco awarded the FEED to Jacobs ZATE, the capital expenditure of Ras Tanura Refinery Clean Fuel and Aromatics project was estimated around $2 billion.

Jacobs won FEED under Saudi Aramco GES+ contract

Since Jacobs had signed the FEED for the Ras Tanura Refinery Clean Fuel and Aromatics project, Saudi Aramco extended the scope of work to Jacobs to:

 – Meet additional environmental requirements on the refining side

 – Increase the portfolio of the petrochemical products in the aromatic phase of the project.

With these extensions, the capital expenditure for Saudi Aramco Ras Tanura Refinery Clean Fuel and Aromatics project may exceed $3 billion.

Jacobs performs this FEED work as a result of its pre-qualification through Saudi Aramco’s General Engineering Services Plus (GES+) initiative.

With the General Engineering Services Plus (GES+) initiative, Saudi Aramco intends to increase the local content in Saudi Arabia for engineering services such as feasibility studies, FEED, project management services.

To fulfill the GES+ initiative, Jacobs acquired in 2008, 60% of the local Zamel & Turbag Consulting Engineers (ZATE) to create the Saudi Arabian entity Jacobs ZATE.

Jacobs ZATE is executing the project from its office in al-Khobar, Saudi Arabia.

In respect with the lat changes, Jacobs is targeting the complete FEED by the end of 2012, so that Saudi Aramco could send the Call for Tender to the engineering companies for the engineering, procurement and construction (EPC) work on first quarter 2013.

As a result of Jacobs‘s FEED work, the Ras Tanura Refinery Clean Fuel and Aromatics project will be divided in multiple EPC packages for which are expected to bid:

 – Chyioda from Japan

 – Daelim Industries from South Korea

 – GS Engineering & Construction from South Korea

 – Hyundai Engineering & Construction from South Korea

 – JGC from Japan

 – Petrofac from UK

 – Saipem from Italy

 – Samsung Engineering from South Korea

 – Sinopec Engineering Inc (SEI) from China

 – SK Engineering & Construction from South Korea

 – Technip from France

 – Tecnicas Reunidas from Spain

Considering Jacobs to complete the FEED at the end of 2012 and the Call for Tender issued on first quarter 2013, Saudi Aramco expects the Ras Tanura Refinery Clean Fuel and Aromatics project for completion and to run into operations by 2017.

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