PASADENA, US: Jacobs Engineering Group was awarded a contract from Luberef (JV between Saudi Aramco and Jadwa Industrial Investment) to provide project management consulting (PMC) services for an expansion project at its lube oil refinery in Yanbu, Saudi Arabia. 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.
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.
“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,” said Hasan Jamaan Alzahrani, President and CEO, Luberef.
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