Updates Insights from July, 2013
• Saudi Aramco still undecided on Jizan air supply contract – State-owned oil company could offer contract on conventional basis or as build, own, operate, transfer.
• KBR and AYTB have signed a seven-year contract to provide refinery maintenance services for the Saudi Aramco Total Refining and Petrochemical Company (SATORP) at a new refinery in Jubail – The contract value for the 400,000 bpd refinery has been estimated to be between US$140mn and US$170mn depending on services required.
• Saudi Arabia is likely to import record volumes of diesel in summer 2013 as it gears up to meet the rising travel needs during the fasting month of Ramadan – State oil company Saudi Aramco said it will import up to 8.9mn barrels (bbl) of diesel in June 2013, up from an estimated 6.7mn to 7.5mn bbl in May, with the same volume or higher to be booked for July. To cut its imports, Saudi Aramco has planned three new refineries. The first of these – Jubail – is expected to produce 176,000 bpd of diesel and will come online in the second half of 2013. Until the refinery, a joint venture with France’s Total and Saudi Aramco Total Refining and Petrochemicals Co.’s (SATORP), is at full capacity, Saudi Aramco will buy heavily to ensure it is covered for Ramadan, it claimed.
• Sadara Chemical Company has signed a loan package for the US$19.3bn petrochemical complex it is currently building in Saudi Arabia – The joint venture between Saudi Aramco and Dow Chemical Company has raised around US$12.5bn loan from banks, export credit agencies and the state-owned public investment fund, as well as proceeds from an Islamic bond issue worth US$2bn.
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• Saudi Aramco has announced that it plans to develop two onshore oilfields by 2017 as Saudi Arabia attempts to maintain its longer-term capacity – The increased capacity from Khurais and Shaybah oilfields, by a total of 550,000 bpd, is expected to take the strain off Ghawar, reportedly the world’s largest conventional oilfield, according to industry sources.
• International Participation At SAOGE Remains Strong – As for previous editions, local and regional attendance is naturally high and continues to be mirrored by considerable international participation. As companies recognize the huge potential that the Saudi oil and gas sector offers, they are using SAOGE to introduce their products and services to this lucrative market. Of those confirmed so far, 34% are foreign with exhibitors coming from Australia, Belgium, Ch Ina, Finland, Italy, France, Germany, India, Singapore, Taiwan, Turkey, United Kingdom, U.S.A.
• SAOGE Highlights Saudi Arabia’s Most Prominent Sector – According to SAGIA (Saudi Arabian General Investment Authority) â€“ the Kingdom which already offers considerable investment opportunities, sees its leading sector continuing to offer excellent opportunities for investors.
The outlook for Saudi Arabiaâ€™s energy sector has never been brighter or more secure. The high oil revenue environment has spurred a boom in both oil and non-oil development projects and unlike previous investment cycles, the current round of investment projects is marked by heavy private sector participation with US$79 billion in private-sector energy projects under development. Private investment is expected to grow even further as the economy expands and the Saudi business environment continues to improve.