Italy's Saipem wins work for Saudi Rabigh II petchem project

27 June 2012 17:14  [Source: ICIS news]

LONDON (ICIS)--Saipem has won a contract for work on the Rabigh II petrochemicals project in Saudi Arabia, the Milan-based petrochemicals engineering firm said on Wednesday.

Saipem said that under the contract from Saudi Aramco and Sumitomo Chemical, it will provide engineering, procurement and construction (EPC) services for planned naphtha and aromatics units at the Rabigh II expansion project north of Jeddah in western Saudi Arabia.

“The scope of work includes the EPC of two processing units: a naphtha reformer unit and an aromatics complex,” Saipem.

The project will be completed by the fourth quarter of 2015, Saipem added.

Saipem did not disclose specific capacity or financial details.

However, it said that after the expansion, Rabigh will process an additional 30m standard cubic feet of ethane/day and 3m tonnes of naphtha/year.

Saipem also said it won an engineering contract for an oil pipeline project in Nigeria. The Saudi and the Nigerian contracts are worth about $1bn (€800m) in total, the company said.

Sumitomo Chemical and Saudi Aramco said last month that they decided to proceed with the phase II expansion of their joint venture in Saudi Arabia – Petro Rabigh – after completing a joint feasibility study on the project.

The project includes expanding Rabigh’s existing 1.3m tonne/year ethane cracker, as well as building a new aromatics complex, ICIS reported.

Additional reporting by Tomomi Yokomura in Tokyo

($1 = €0.80)

By: Stefan Baumgarten
+1 713 525 2653

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