Saudi Arabian state-owned oil company Saudi Aramco is to sign an agreement with China-based Sinopec Group to build an oil refinery in Yanbu, Saudi Arabia.
The companies will form a joint venture, the Yanbu Aramco Sinopec Refining Co, to develop the new 400,000bpd oil refinery project.
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Saudi Aramco will hold a 62.5% interest in the joint venture, while Sinopec will hold the remaining stake, reports Reuters.
The refinery’s construction is underway and the facility on the Red Sea coast will be completed by 2014.
Originally, the project was to be built by Saudi Aramco and US-based oil firm ConocoPhillips in Yanbu Industrial City; however, ConocoPhillips pulled out in April 2010 to focus on oil and gas exploration activities.
In July 2010, Saudi Aramco awarded contracts to build the multi-billion dollar refinery to international companies including South Korea-based Daelim and SK Engineering & Construction Co, which will construct three of the main processing units at the site.
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By GlobalDataOther companies including Spain’s Tecnicas Reunidas, Dayim Punj Lloyd (Saudi Arabia) and Egypt-based Engineering for the Petroleum and Process Industries also secured contracts.
The Yanbu refinery will process heavy crude from the Moneefa oilfield in Saudi Arabia.
