Saudi Aramco, SABIC launch bidding at chemical project: report

Saudi Arabian Oil Co. (Saudi Aramco) and Saudi Basic Industries Corp (SABIC) have launched bidding for engineering work on their joint $20 billion crude oil to chemicals project, industry sources told Reuters.

The closing date for bids for pre-front end engineering and design work (pre-FEED) and FEED is Sep. 25, 2017, one of the sources said.

The pre-FEED phase is expected to be completed by late 2018, with FEED to be finalized by late 2019. Bidding for construction will be launched by mid-2020, it was reported.

The plant, which will process Arabian Light and Extra Light crude oil, is expected to be commissioned by end of 2024.

Aramco and SABIC are still considering whether to locate the chemicals site: at Yanbu, near a power plant; or in Jubail close to Sadara, an Aramco JV with Dow Chemical.

SABIC's CEO told Reuters in May that the project could produce more than 18 million tons of materials annually, according to earlier news reports.

In June 2016, both companies signed an agreement to establish the first industrial complex in the Kingdom to process crude oil into chemicals, without refining.