A combine of Japanese and U.S. refiners has agreed to a joint venture with Saudi Aramco Oil Co. to build 450,000 b/d of processing capacity in Saudi Arabia and Japan.
Saudi Arabia also is moving ahead with two other projects to upgrade four of its refineries.
A feasibility study is to get under way on a 300,000 b/d export refinery at Jubail in Saudi Arabia's eastern province and addition of 150,00 b/d of capacity to Nippon Oil Co.'s 42,000 b/d Kudamatsu processing unit in Japan.
The two projects could cost as much as $4.3 billion. Construction is expected to start next year. The units could be on stream in 1995.
Saudi Aramco holds a 50% interest in the joint venture. The remaining interests are Nippon Oil 20%, Nippon Mining Co. 15%, Caltex Petroleum Corp. 10%, and Arabian Oil Co. 5%.
The 300,000 b/d Jubail unit will have sophisticated upgrading capacity. Most of its output will be shipped to Japan.
The Japanese project will involve taking the simple Kudamatsu plant in Yamaguchi prefecture out of mothballs and adding 150,000 b/d of distillation capacity and providing upgrading facilities to cover the whole unit.
Saudi Aramco also is pushing ahead with an upgrade of its 530,000 b/d Ras Tanura refinery. It is evaluating bids in preparation for the award of a contract this summer.
In addition, Saudi Arabian Marketing & Refining Co (Samarec) has called for bids for the upgrading of domestic refineries at Yanbu, rated at 170,000 b/d, Riyadh 134,000 b/d, and Jeddah 82,000 b/d. Bidding will close at the end of this month.
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