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Yanbu Refinery Expansion Awarded to Jacobs Engineering

Saudi Arabia : 31 January 2011

Jacobs Engineering firm to design the expansion in Yanbu.

Luberef (or Saudi Aramco Lubricating Oil Refining Company) is awarding Jacobs Engineering with the design contract for the Yanbu refinery expansion.

This is the largest project undertaken since 1997 and the firm quoted that initial expenses should total Dh 3.62 billion (or 3.7 billion riyals).

Both group two and group three high quality base oils will be produced at this refinery after the expansion, in response to the rising demand within both global and domestic markets.

This project will roll out in phases and is scheduled to be online by 2015.

CEO and President of Luberef, engineer Ali Al Hazmi spoke while the contract was being signed, stating this project has major significance for the Kingdom, proving the Luberef is committed to meet rising demands in the market.

Al Hazmi noted that this project coincides with Luberef’s mission to deliver high quality base oil when needed and at competitive prices, as well as staying on top of the environmental protection and safety performance levels seen across the globe.

The CEO noted that two refineries focusing on lubricating oil are included in the expansions – the first in Jeddah and the second within the industrial area of Yanbu. These sites were owned by Jadwa Industrial Investment (with a 30 percent stake) and Saudi Aramco (70 percent stake).

Marketing director Hassan Azoz stated that the current capacity of the company (for Group one) sits at 550,000 tonnes of oil lubricants annually.

Azoz added that Luberef supplies GCC member states Jordan and Yemen with these products, as well as supplying the local market.

He noted that the continuation of development within the industry has seen Luberef commit to keeping up and shifting to a higher production of high quality base oils Group two.

Within the expansion the production capacity will increase to reach 750,000 tonnes of Group two high quality base oil, bringing the overall production to 1.3 million metric tonnes.

Expansion of the Luberef operations is in keeping with the goal to capture market shares in East Asia and Europe, according to Azoz.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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