The Yanbu refinery expansion project is expected to enhance the base oil product and meet the growing demand of high quality GR-II and GR-III base oils.
The expansion project is also anticipated to double the GR-I Bright production; produce high-value by products such as diesel, kerosene, naphtha; and meet the country’s requirement for producing drilling fluid.
The refinery is a full-conversion 400,000 barrels per day facility located in Yanbu, a major Red Sea port in the Al Madinah province of western Saudi Arabia.
Financial terms of the contract were not disclosed, but it is estimated that the project cost could reach up to $1bn.
Under the terms of the agreement, Jacobs will provide PMC services for both the inside battery limits (ISBL) and the outside battery limits (OSBL).
Services for the ISBL includes setting up a new lube oil unit, sulfur complex, hydrogen manufacturing unit and expanding the propane de-asphalting unit.
The services for OSBL cover all utilities tanks and infrastructure.
Luberef president and CEO Hasan Jamaan Alzahrani said the project expansion will increase economy, employment and also provide high quality lubricants to sell.
"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," Alzahrani added.
"Luberef is looking forward to working with Jacobs to execute this major milestone of the expansion project."
