Thursday, Jun 14, 2007
DUBAI (Dow Jones)--Saudi Arabian Oil Co., the world's largest national oil company, will build an estimated $8 billion refinery in eastern Saudi Arabia to meet rising domestic demand, people familiar with the plans said.
The East coast refinery is the fourth new facility planned in the kingdom, which will boost total capacity to above 3.5 million barrels a day by 2012, double the U.K.'s.
The refinery, to located at Ras Tanura, will process 400,000 barrels a day of crude and will be located at Ras Tanura on the Persian Gulf, the people said.
Aramco this week invited international engineering firms to bid in the first stage of the project's tender process. The companies were asked to prequalify by June 25, the people said.
The winning company will carry out engineering and project management on the project, due for completion at the end of 2011, the people say.
Companies including Fluor Corp., Foster Wheeler Ltd. and Technip S.A. have bid for similar contracts in the kingdom.
Persian Gulf governments, flush with cash from three years' of high oil prices, are investing in new crude oil refineries to meet rising demand and tighter specifications for products such as gasoline and diesel, notably in Europe and in the U.S.
-By Oliver Klaus, Dow Jones Newswires, +9714 364 4961 Oliver.Klaus@dowjones.com
Copyright (c) 2007 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
14-06-07 0918GMT
