Jacobs Engineering Group was awarded a contract from Saudi Aramco Lubricating Oil Refining Co. (Luberef) to provide front-end engineering design (FEED) services to support an expansion project at its lube oil refinery in Yanbu, Saudi Arabia.
Officials did not disclose the contract value. However, they noted that based on the outcome of the feasibility study the overall expansion project cost was estimated at approximately US$1 billion.
Under the agreement, Jacobs is providing FEED services for both inside battery limits (ISBL) and outside battery limits (OSBL). The ISBL services involve a new lube oil unit (hydrocracking, iso-dewaxing/hydrofinishing), a new sulfur complex, and an expansion of the propane de-asphalting unit; the OSBL services involve all utilities and infrastructure.
Jacobs' Leiden, The Netherlands office is managing the overall project, while the infrastructure and buildings services are being executed by Jacobs' Al Khobar, Saudi Arabia office. Additionally, Jacobs' office in Mumbai, India is executing selected design elements.
The Yanbu Refinery expansion is intended to increase base oil production to meet future demands for high quality G-II and G-III base oils and increase the GR-I Bright stock to almost double current production; produce highervalue byproducts (naphtha, diesel, kerosene); and satisfy Kingdom requirements for drilling fluid, which is currently imported.
Luberef's President and CEO, Ali A. Al-Hazmi stated, " 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 one-stop shop supplier. Luberef is looking forward to working with Jacobs to execute this major milestone of the expansion project."
In making the announcement, Jacobs Group Vice President Robert Matha stated, "Jacobs is extremely proud to partner with Luberef on this significant project at the Yanbu Refinery, which also expands our growing presence and capability in Saudi Arabia."
