HOUSTON (ICIS)--SABIC and Saudi Aramco have awarded a project management and front-end engineering and design (FEED) contract to KBR for their proposed crude-oil-to-chemicals (COTC) complex in Saudi Arabia, the two companies announced on Thursday.
Expected to start up in 2025, the complex will process 400,000 bbl/day of crude, which will produce about 9m tonnes/year of chemicals and base oils.
Petrochemical producer SABIC and state-owned energy firm Saudi Aramco signed a heads of agreement (HOA) in June 2016 to conduct a joint comprehensive feasibility study for the project.
The companies signed a memorandum of understanding (MoU) in November 2017, governing the execution of the FEED before a final investment decision (FID) is made.
On Thursday, the companies said that the contract with KBR would primarily cover the finalisation of the project scope, selection of technology providers, update on project economics, as well as performance of the FEED.
“The award of this second project management contract to KBR not only strengthens the project with additional world-class experience, but is yet another milestone in the kingdom’s continuous drive to redirect and optimise its abundant natural resources and maximise its chemicals yield,” said Amin Nasser, president and CEO at Saudi Aramco.
The COTC complex is expected help the economic transformation away from crude exports to higher-value industrial products, which was outlined in Saudi Vision 2030, the companies said.
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