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Jacobs awarded Project Management Contract for Refinery Expansion in Saudi Arabia

PM INDUSTRY NEWS

13 February 2013 – Jacobs Engineering Group has announced that it has been awarded a contract from Saudi Aramco Lubricating Oil Refining Co. (Luberef) to provide project management consulting (PMC) services for an expansion project at its lube oil refinery in Yanbu, Saudi Arabia.   The contract value was not disclosed; the overall expansion project cost is estimated at approximately $1 billion. Jacobs’ Leiden, Netherlands office is managing the overall project in collaboration with Jacobs’ offices in Al Khobar, Saudi Arabia and other locations.

refinery-saudiUnder the terms of the agreement, Jacobs is providing PMC services for both inside battery limits (ISBL) and outside battery limits (OSBL). The ISBL services include a new lube oil unit, a new sulfur complex, a new hydrogen manufacturing unit, and an expansion of the propane de-asphalting unit. The OSBL services involve all utilities, tanks and infrastructure.

The Yanbu Refinery expansion is expected to increase base oil production to meet future demands for high quality GR-II and GR-III base oils; increase the GR-I Bright stock to almost double current production; produce higher-value byproducts (naphtha, diesel, and kerosene); and satisfy Kingdom requirements for producing drilling fluid, which is currently being imported.

Luberef’s President and CEO Hasan Jamaan Alzahrani stated, “This expansion project will add value to the Kingdom’s economy including employment, and provide high quality lubricants to the markets we serve. In addition, it is part of Luberef’s overall strategy to provide high quality base oil with different product slates of GR-I, GR-II, and GR-III to strengthen Luberef’s position as a leading supplier. Luberef is looking forward to working with Jacobs to execute this major milestone of the expansion project.”

Jacobs Group Vice President Bassim D. Shebaro stated, “Jacobs is delighted to continue our partnership with Luberef by working on this significant project at the Yanbu Refinery. After our successful FEED efforts, we welcome the opportunity to continue to support Luberef’s production of higher-grade clean fuels.”

Luberef, a joint venture between Saudi Aramco and Jadwa Industrial Investment, is one of the world’s leading suppliers of high quality base oil.

Jacobs Engineering Group Inc.(NYSE: JEC) is one of the world’s largest and most diverse providers of professional technical services. With 2011 revenues of over $10 billion, Jacobs offers full-spectrum support to industrial, commercial, and government clients across multiple markets.  Services include scientific and specialty consulting as well as all aspects of engineering, construction, operations, maintenance and project management. Based in Pasadena, California, USA, Jacobs has more than 200 offices in over 25 countries. More at http://www.jacobs.com/

Source: Jacobs Engineering