Bloomberg News

Aramco’s Sadara Awarding Construction Contracts, KBR Says

February 14, 2012

(Updates with Middle East projects in fifth paragraph.)

Feb. 14 (Bloomberg) -- Sadara Chemical Co., a joint venture between Saudi Arabian Oil Co. and Dow Chemical Co., is awarding contracts for the construction of a petrochemical plant, said an official with KBR Inc., an adviser on the bidding.

KBR performed engineering and design work on the facility to be built at Jubail, Saudi Arabia, said Khaled Abu-Nasrah, the Houston-based company’s president for the Middle East. KBR is also the project management consultant for Sadara, he told a conference today in Dubai.

Middle Eastern oil producers are expanding their capacity to refine crude and produce petrochemicals, seeking to meet domestic demand for fuels and make specialty chemicals that can fetch higher prices on international markets. This expansion is creating work for contractors, builders and engineers.

Saudi Aramco, as Saudi Arabia’s state oil producer is known, is building three refineries and expanding into chemicals output. Iraq is building four refineries, and Kuwait plans a facility to process more than 600,000 barrels a day of oil.

Project management consultants typically advise clients on tendering for works and on the evaluation of bids. KBR did engineering work and serves as management consultant for Saudi Aramco’s planned refinery at Jizan on the kingdom’s southern Red Sea coast, Abu-Nasrah said.

In Iraq, KBR is working on refinery projects at Maysan and Nasiriya and on the BP Plc-led Rumaila oilfield development, Abu-Nasrah said. Kuwait may seek bids by the end of this year to build a refinery, he said.

--Editors: Bruce Stanley, Matthew Brown

To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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