SAUDIS POISED FOR HUGE REFINING UPGRADE

Saudi Arabian Marketing & Refining Co. (Samarec) has issued a letter of intent to Foster Wheeler USA Corp. to provide program management services for the first phase of a massive refining upgrade program. Total cost of the three phase program will amount to about $4 billion (U.S.).

Aug. 19, 1991

2 min read

Total cost of the three phase program will amount to about $4 billion (U.S.).

The first phase calls for modernization and upgrading of Samarec's 170,000 b/d Yanbu, 134,000 b/d Riyadh, and 82,000 b/d Jeddah refineries. The goal is increased production of higher value products, including high octane unleaded gasoline. The program at Yanbu will include a new vacuum gas oil conversion unit to produce more reformulated gasoline and distillates.

Foster Wheeler will perform front end engineering and prepare turnkey bid packages for engineering, detailed design, procurement, and construction of facilities at each of the refineries. It will then provide overall management of turnkey contractors from contract award through unit commissioning.

Foster Wheeler also will provide detailed engineering, procurement, and construction management services for all new offsite and support units at the plants. The first phase of the program is to be complete in 1994.

The second phase plan envisions upgrading of units at the 530,000 b/d Ras Tanura and 332,500 Rabigh refineries during 1991-95.

The third phase calls for enhancement of facilities at two joint venture refineries-the 300,000 b/d PetrominMobil Yanbu refinery and the 284,000 b/d Petromin-Shell Jubail refinery-along with upgrades at Jeddah and Ras Tanura and extension of the pipeline from Abkaik to the 134,000 b/d Riyadh refinery.

The third phase time frame is 1995-2000.

Signing of the letter of intent with Foster Wheeler followed a 6 month study carried out by Samarec's engineering department working with Purvin & Gertz, Houston. As a result of the study, a phased program to modernize all of the kingdom's refineries was recommended.

Eleven companies were invited to qualify for the project management assignment. Ten of the 11 accepted the invitation, and from that field Foster Wheeler and three other firms were invited to bid (OGJ, June 1, p. 18).