Aramco & SABIC choose KBR for their oil to chemicals plan worth $20b
Date: 2018-04-27   Author: Ojaswita Kutepatil  Category: #industry

Aramco & SABIC choose KBR for their oil to chemicals plan worth $20b

Oil major Saudi Aramco and SABIC (Saudi Basic Industries Corp), the renowned chemicals industry titan have reportedly announced their partnership over a planned oil to chemicals project. Allegedly the project is the world’s biggest, and both the firms have awarded a project management contract to the U.S. engineering firm KBR to develop the scheme. The joint project is estimated to be worth over USD 20 billion.

Sources reveal that under the contract, KBR will select technology providers, perform front-end engineering & design, update project economics, and finalize project scope.

Amin Nasser, Aramco chief executive and president, was quoted saying that with the addition of KBR to the oil-to-chemicals project, both the companies are now pretty confident about the initial phases of the project as well as ‘the inclusion of a high proportion of local content’. He further claimed that the awarding contract to KBR has strengthened the project with its world-class experience and has parallelly set another milestone in the Kingdom’s initiative to optimize and redirect its abundant natural resources & maximize its chemicals yield.

The move comes on the heels of Saudi Aramco’s plan to enhance its profitability quotient from the sale of products besides crude.

According to experts, the oil to chemicals facility which will be based on the country’s western Red Sea Coast, will be a significant contributor to the region’s chemicals industry growth. It has been reported that the oil to chemicals project will be processing 9mmt of chemicals and 400,000 bpd of crude oil annually.

It has been reported that Saudi Arabia has extensively relied on oil revenues and has witnessed its economy come under strain with oil prices sinking to multi year lows. The plunge in the oil prices has prompted the regional government to considerably diversify its economic growth away from oil and encourage private growth.

Industry experts deem that the contract which has been awarded to KBR is a major advancement toward establishing a large petrochemical facility in support of the regional government’s vision of initiating new industrial technologies.



About Author


Ojaswita Kutepatil

Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. Currently, she works at AlgosOnline. as an Content writer, where she pens down write-ups pertaining to the market res...

Read More

More from Ojaswita


Post Recommendents

Global Automotive Lighting Market Detail Analysis focusing on Key Players like General Electric Company, HELLA GmbH & Co. KGaA, Hyundai MOBIS, Koito Manufacturing Co., Ltd, Magneti Marelli S.p.A & more
Author: Partha Ray

MarketStudyReport.com offers 2018 report on global Automotive Lighting market that evaluates industry growth trends through historical data and estimates future prospects based on comprehensive research. The report extensively provides the market ...


Hybrid Solar Wind Energy Storage Market 2024 Key Information by Top Key Players Siemens Gamesa, UNITRON, Grupo Dragon, ReGen Powertech, General Electric, Goldwind, Suzlon
Author: Partha Ray

Market Study Report adds global Hybrid Solar Wind Energy Storage market report that gives meticulous investigation of current scenario of the market size, share, demand, growth, trends, companies active in the industry and forecasts for the coming...


East Africa Flat Glass Market 2018 to 2024 By Product - Laminated, Tempered, Basic Float, Insulating
Author: Rahul Varpe

According to estimates the East Africa flat glass market size from building and construction application during 2017 was valued at $115 million. Recently at East Africa BUILD, the East Africa International building mat...