$ 2 bn Saudi Aramco Rabigh refinery upgrade PMC tender

Nov 21, 1996 01:00 AM

Saudi Aramco has invited firms to bid for the project management contract (PMC) on the estimated $2 billion upgrade of its Rabigh oil refinery. The upgrade programme, scheduled to be completed in the year 2000, will increase the Red Sea plant's gasoline and kerosene yields and reduce debottlenecking and heavy product yields. The upgrade aims to enable the refinery to operate at its full capacity on completion of the project in 2000. Planning is expected to take nine months with construction beginning in 1998. The PMC was tendered much earlier than expected, possibly due to an improvement in Aramco's cashflow from higher than expected oil prices. PMC bids are due by the middle of December. Some 280,000 barrels per day (bpd) of Saudi crude is run at the refinery, well below design capacity of 325,000 bpd because of the plant's configuration and large surplus fuel oil output. Despite its size, the plant is one of the kingdom's least sophisticated and most inefficient refineries.

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