Saudi Arabia to seek Jizan refinery bids Sept. 6

July 15, 2008
Saudi Arabia, renewing efforts for the construction of a long delayed facility, will issue tenders in September for a new oil refinery in the southern province of Jizan, according to local media.

Eric Watkins
Senior Correspondent

LOS ANGELES, July 15 -- Saudi Arabia, renewing efforts for the construction of a long delayed facility, will issue tenders in September for a new oil refinery in the southern province of Jizan, according to local media.

The Saudi Al-Eqtisadiah newspaper said the petroleum and mining ministry will issue a request Sept. 6 for proposals for the refinery to companies that it has vetted as qualified to build and operate the refinery.

The tender for the 250,000-400,000 b/d refinery has been delayed several times, from initial plans to open bidding in the second quarter of 2007 (OGJ, June 23, 2008, p. 33 ).

Bechtel, Foster Wheeler, Technip, and Snamprogetti are among the foreign companies that have established consortia with Saudi firms to bid the project.

Other interested firms include Petronas, Formosa Petrochemical Corp., Reliance Industries, China National Offshore Oil Corp., and Petroleo Brasileiro SA (Petrobras).

The Saudi government has approved eight domestic firms to participate in joint ventures: Nama Chemicals, Al-Arabiya for Water and Energy Development, Advanced Petrochemicals & Refineries, National Industrialization, Obeikan Investments, Arabian Peninsula for Industrialization & Petroleum Services, Taqaat, and Adbel-Kader al-Bakry & Sons Industrialization.

Contact Eric Watkins at [email protected]