Saudi Aramco bags $10-billion Jazan refinery project
21 Jan 2010
Saudi oil giant Aramco will construct the $10 billion Jazan refinery, which will have a capacity of about 400,000 barrels of oil per day, Saudi Arabia's minister of petroleum and mineral resources Ali Al-Naimi said on Tuesday.
Saudi King Abdullah had approved the plan, Saudi English-language daily newspaper Arab News reportedAl-Naimi as saying.
''The ministry of petroleum and mineral resources appreciates and values the companies that made a serious attempt to compete vigorously for the project's license,'' Al-Naimi said, referring to the eight Saudi firms and 42 international oil companies that were short-listed for the tender.
''But the government, considering its current capacity and ability to ensure the establishment of this important development project in Jazan, has commissioned Saudi Aramco to implement and finance the project wholly,'' the minister said.
The bidding process for the Jizan refinery project has been delayed several times, as the kingdom strives to attract foreign interest in the project. Very limited interest has been shown in the project as players question the profitability of the refinery that is located very far from Saudi oil and gas fields.
Tuesday's surprise announcement came after Al-Naimi said last month he expected the winner of the contract would be declared soon.
