Saudi Aramco to hire research firm for oil-to-chemicals project

State-run Saudi Aramco is close to signing a memorandum of understanding (MoU) with a research firm to produce olefins from cracking crude oil at a lower cost, Abdulaziz Al-Judaimi, senior vice president of downstream, told Sky News Arabia on Wednesday.

The oil producer is working on a new technology to directly produce olefins and chemicals from oil at a conversion rate of up to 70 percent. 

Refining units will be more profitable through integrating its downstream business, which comprises chemicals, lubricants or product marketing stations.

"We aim to raise the ratio of chemicals from current 7 percent to almost 12 percent by adding ethylene cracking units to these refineries, Al-Judaimi added.

The oil giant aims to double its refining capacity to 10 million barrels per day, he added.