• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 2 mins Dutch Populists Shock the EU with Election Victory
  • 8 hours One Last Warning For The U.S. Shale Patch
  • 3 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 3 hours Venezuela Says Russian Troops Land to Service Military Equipment
  • 5 hours U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 2 hours Read: OPEC THREATENED TO KILL US SHALE
  • 18 hours Climate change's fingerprints are on U.S. Midwest floods
  • 1 day Oil Slips Further From 2019 Highs On Trade Worries
  • 1 day The Political Debacle: Brexit delayed
  • 5 hours European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 1 day Telsa Sales in Europe
  • 15 hours Modular Nuclear Reactors
Global Intelligence Report – 20th March 2019

Global Intelligence Report – 20th March 2019

The power balance in conflict…

Oilfield Services Might Not Fully Recover Till 2025

Oilfield Services Might Not Fully Recover Till 2025

The global oilfield service sector’s…

Saudi Aramco Plans More Petrochemical Ventures After $20B Deal

Saudi Aramco Plans More Petrochemical Ventures After $20B Deal

Saudi Aramco will enter more petrochemical projects to boost its downstream business after it signed a preliminary $20-billion joint venture agreement for a crude oil-to-chemicals complex in Saudi Arabia, Aramco’s chief executive CEO Amin Nasser told Reuters in an interview published on Monday.

On Sunday, Aramco and Saudi Arabia’s chemicals company SABIC signed a memorandum of understanding to develop a fully-integrated crude oil to chemicals (COTC) complex in Saudi Arabia, planned to process 400,000 bpd of crude oil. Start-up of operations is expected in 2025 and the complex is expected to produce some 9 million tons of chemicals and base oils per year.

The agreement is for the Front End Engineering Design (FEED) before a final investment decision is made. Investment is expected to be shared equally by both companies, Aramco said.

“It’s a starting point, there will be others in the future as we develop our technologies to shift or turn more barrels of crude into chemicals,” Aramco’s Nasser told Reuters after the signing of the agreement.

Aramco will be looking to expand into petrochemicals because the demand in the sector is twice as much as in the transportation sector, the chief executive of the Saudi oil giant said.

“Currently our crude is primarily or mostly utilized in the transportation sector followed by aviation, shipping and other sectors,” Nasser told Reuters.

Related: Shell Teams Up With Carmakers To Build Huge EV Charging Network

Aramco, however, does not see the need to expand its crude oil production capacity beyond the current 12 million bpd because it has enough spare capacity to accommodate the crude oil-to-chemicals project with SABIC as well as other projects, Nasser told Reuters, when asked if the petrochemicals expansion would mean that the Saudi state oil firm had to raise its production capacity.

Aramco is in talks with Chinese petrochemical producers that are building new plants to supply them with crude, a company vice-president said last week. The talks are part of Saudi Arabia’s efforts to gain more exposure to refining and petrochemicals and to reduce its dependence on crude oil production and sales.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Paulo on November 28 2017 said:
    Another petrochemical plant in Saudi Arabia means more jobs for expat Chinese.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News