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    DeepOcean charters offshore support vessel to strengthen customers oil and gas, renewables assets

    Carbon+Intel - DNV and energy majors launch JIP to develop low-pressure CO2 transport by ships

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    UN Condemns Energy Giants For Ignoring Science of All Things

    Global oil and gas projects pipeline at US$4 trn

    BP begins gas production at West Nile Delta project

    BP begins gas production at West Nile Delta project

    Bechtel and Cheniere Deliver LNG Ahead of Schedule on US Gulf Coast

    Bechtel and Cheniere Deliver LNG Ahead of Schedule on US Gulf Coast

    ABB wins $79m order for Bab onshore project in Abu Dhabi

    Phillips 66 and Bridger Pipeline LLC Announce Open Season for Rockies and Bakken Crude Oil Pipeline System

    Phillips 66 and Bridger Pipeline LLC Announce Open Season for Rockies and Bakken Crude Oil Pipeline System

    BHP successful in bids for blocks in the offshore Orphan Basin in Eastern Canada

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    bp and Oman form strategic partnership to progress significant renewable energy and hydrogen development

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    OERA & ONHYM Reach Agreement to Enhance Offshore Energy Research & Development

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    bp looks to further developments at Tangguh with PSC extension

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    QatarEnergy, GE to develop carbon capture roadmap

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    Equinor Energy

    Transocean secures offshore drilling rig contract from Wintershall and OMV

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    CNOOC Limited Announces Caofeidian 11-1/11-6 Oilfield Comprehensive Adjustment Project Commences Production

    Vital Energy acquires oil production assets in Permian basin for $128 million

    INPEX sells Eagle Ford tight oil production and development assets to Repsol

    Matador Resources acquires Delaware basin assets for $1.6 billion

    Funding For Oil And Gas Industry Is Evolving Dramatically

    Marathon Oil Completes Eagle Ford Acquisition

    Neptune Energy producing natural gas from Merakes project in Indonesia

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    Chevron Announces $15 Billion Capital and Exploratory Budget for 2022

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    Aramco announces second quarter and half-year 2021 results

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New Delays Hit Saudi Aramco’s Jizan Refinery –Sources

Yuvraj_ong by Yuvraj_ong
November 27, 2014
in Downstream, Middle East & South Asia, News
0

A contract disagreement between Saudi Aramco and South Korea’s SK Engineering & Construction is delaying construction of a 400,000-barrel-per-day oil refinery in Jizan in southwest Saudi Arabia, industry sources said.

 

Despite the disagreement, which focused on claims for compensation for change orders, the contract has not been terminated, the industry sources in Saudi Arabia said, denying reports in Gulf business media.

 

Other contractors on the project have had similar issues, requesting compensation for losses incurred for design changes and delays caused by the slow rate of work on related infrastructure, the sources said.

 

The refinery, valued at $6 billion to $7 billion, is the centrepiece of a wider plan to revive the economy in one of Saudi Arabia’s poorest regions by developing an industrial city that produces and uses oil products for manufacturing.

 

The complex had been scheduled to be completed in late 2016, but industry sources in the kingdom said last year that it faced delays of six to 12 months because work on associated infrastructure was behind schedule.

 

A spokesman for SK E&C said on Tuesday the company was still in talks with state-run Saudi Aramco to carry out construction of the crude distillation and vacuum distillation units.

 

Saudi Aramco declined to comment when asked if the contract with SK had been terminated.

 

“If the contract gets terminated, who will take over? There will be a big impact then on schedule of the whole refinery, on all contractors, on Aramco,” said a source who declined to be identified.

 

Little progress has been made on the construction of the refinery since contracts were awarded in 2012.

 

When complete, it will process heavy and medium crude oil into around 75,000 bpd of gasoline and 250,000 bpd of ultra-low-sulphur diesel. Products will also include liquefied petroleum gas, sulphur, asphalt, benzene and paraxylene.

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