SAUDI Arabia plans to proceed with a project for a new oil refinery at Jizan and will invite bids to build and operate the plant in May, the oil ministry says.

Spiralling costs have cast doubt over the viability of new oil refineries worldwide. Industry observers were sceptical over the Jizan refinery going ahead as it is a long distance from crude production.
The project is part of government plans to give an economic boost to the impoverished region of Jizan in the far south, on the Red Sea coast. The government plans an “economic city” there.
The tender for the project has been delayed several times, from initial plans to open bidding in the second quarter 2007.
“It will be opened at the end of May,” says Abed Al-Saadoun, the oil ministry point person for Jizan, adding the winner could be chosen by the end of 2008.
He says the refinery will have capacity of up to 400,000 bpd but declined to speculate on costs. Saudi officials say that the plant would have capacity of between 250,000 and 400,000 bpd.