Saudi PetroRabigh extends $8bn project bid
Riyadh, September 12, 2011
Saudi Arabia's PetroRabigh has extended bidding for building parts of an estimated $6-8 billion expansion project at its giant petrochemical complex, industry sources said.
Bidding for some of the packages that are being tendered is now due to close on October 19, instead of the October 1 deadline set when the firm - a joint venture between Saudi Aramco and Japan's Sumitomo Chemical - launched the tender.
Contractors expect tough competition over construction deals as companies bid for more work in the world's largest oil exporting country.
The bid extension involves the main process units and two utilities projects, sources close to the project said. Bidding for another utilities package -- UO1 -- is due by Oct. 31.
The Rabigh II project is split into seven process units and three associated utilities projects.
Bidding has started but a final investment decision is not expected until the end of this year.
PetroRabigh plans to build a number of petrochemical plants including an aromatics complex consuming around 3 million tonnes per year of naphtha and a 30 percent increase in ethylene production capacity.
But the capacity of the 400,000 barrel per day refinery is to remain unchanged. The refinery is part of the complex in Rabigh, which has now an annual production capacity of 18 million tonnes of refined products and 2.4 million tonnes of petrochemicals.
The award of the new deals is expected early next year and the Rabigh II project is due to be completed in the first quarter of 2015, sources have said.-Reuters