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Saudi Aramco, SABIC receive bids for oil-to-chemicals project

Published 25/10/2017, 10:27
© Reuters. Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show and Conference (MOES 2017) in Manama

KHOBAR, Saudi Arabia (Reuters) - Saudi Aramco and Saudi Basic Industries Corp have received project management consultancy bids for a planned joint venture oil-to-chemicals project, industry sources said.

The two partners are expected to sign a memorandum of understanding to jointly develop the complex in mid-November.

The $20 billion plus project would be the first major scheme involving the two companies and is part of Saudi Aramco's plans to expand in petrochemicals.

Bidders include KBR, Fluor, Jacobs Engineering, WorleyParsons and Amec Foster Wheeler.

Bids were submitted mid-October for project management consultancy (PMC) of the whole project including pre-front end engineering and design work (pre-FEED) and FEED, sources familiar with the matter said.

Sources expect the award of the contract to be made early 2018 while commissioning of the complex is seen by the end of 2024.

Saudi Aramco's CEO Amin Nasser said on Tuesday he expects a final decision to be made by the end of the year.

"The two companies are working on a memorandum of understanding that is expected to be signed mid-November," said one of the sources who declined to be identified as the information is not public.

© Reuters. Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show and Conference (MOES 2017) in Manama

Asked about the bidding process, Saudi Aramco said it does not comment on its on-going business transactions.

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