Project name:  Saudi Aramco – Yanbu export refinery
Name of client:  Saudi Aramco – Saudi Arabian Oil Company
Budget:  $5,000,000,000

Main contractor: Not yet appointed
Facility Type:  Refinery
Status:  FEED
PMC: KBR (Kellogg Brown & Root)
Location: Yanbu
Project status
Saudi Aramco is planning to construct a 400,000 bpd (barrels per day) grassroots refinery in Yanbu.
Project scope
The project will be executed in four packages.
•  Package 1 – covers the construction of a delayed coker unit, and a mercaptan removal unsaturated gas unit with capacity to treat 12,000 bpd of liquefied petroleum gas;
•  Package 2 – involves the construction of a crude distillation unit, a vacuum distillation unit, and a saturated gas plant to collect gas and liquid streams and separate them into natural gas liquids and naphtha streams;
•  Package 3 – entails the installation of a 177,000 bpd distillate hydrotreater, a continuous catalytic reformer, a naphtha hydrotreater, a benzene extractor unit, and an isomerisation unit; and
•  Package 4 – calls for the construction of a 124,000-b/d hydrocracker, which will hydro-crack gas oil feedstocks into ultra-low-sulphur diesel.
The plant will be a grassroots refinery. Plannned processing capacity is 400,000 bpd of heavy arabian crude.
The feasibility study will establish the project's location, configuration, plot plans and estimated cost.
For the site, Aramco has suggested four options – Jubail, Juaymah and Ras Al Zour in the Eastern Province and the Red Sea city of Yanbu.
The refinery is set to produce clean fuels, which are increasingly in high demand due to tighter product specifications in key export markets.
The refinery will primarily target exports to Asia, Europe and the Mediterranean.
The main contractor will have the following responsibilities: detailed design, procurement, construction, commissioning and start-up of the project.
The project will involve the installation of naphtha hydrotreaters and splitters, twin catalytic reformers, isomerisation units, distillate hydrotreaters, vacuum distillation units, hydrocrackers and fluid catalytic crackers.
Project structure
Saudi Aramco is the client.
White & Case has been appointed as the legal advisors.
Aramco is exploring the possibility of having an international oil company as a joint venture partner in the project.
Conoco has been selected as a joint venture partner for the project.
Conoco and Saudi Aramco will own 50 per cent each of the project.
It is also believed that an IPO will be issued in late 2007.
As of early July 2006, the following banks are believed to have been invited to submit proposals for finance:
• BNP Paribas;
• Citigroup;
• Sumitomo; and
• Mitsui Banking Corporation.
As of late July 2006, the following banks have submitted proposals: BNP Paribas/Samba, Citigroup/Riyad Bank, Sumitomo Mitsui Banking Corporation/Saudi Hollandi Bank.
As of late September 2006, Citigroup/Riyadh Bank has been awarded the financial advisory mandate.
Schedules for this project
July 15, 2005  Feasibility study contract
 awarded
September 1, 2005 Feasibility study completed
May 2006 Conoco selected as partner
May 2006 FEED & PMC tender issued
Late May 2006 FEED & PMC bids due
June 3, 2006 PMC/ FEED bids submitted
Late May 2006 Formal JV agreement signing
June 2006 PMC & FEED contract
 awarded
September 2006 Award of Financial Advisory
 Mandate
Late September 2006 Citibank/Riyadh Bank awarded
 mandate as finiancal advisor
Early 2007 EPC Tendering