Wednesday, 03 December 2008
updated 1 minute ago
04:37 UAE time

YOUR DIRECTORY /

Saudi Arabia invites bids for Jazan refinery

by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 07 September 2008

PRE-QUALIFIED: Saudi Aramco is already listed as a potential contractor for the Jazan refinery. (Getty Images)

Saudi Arabia's oil ministry said on Sunday it had set March 7, 2009 as the deadline for prequalified companies to present detailed proposals to build an export refinery in Jazan.

Eight companies already shortlisted by the ministry could now download a "request for proposal" package from the refinery website (www.jazanrefinery.com), it said in a statement.

The tender for the 250,000 to 400,000 barrels per day (bpd) refinery has been delayed several times - initial plans were to open bidding in the second quarter of 2007.

Spiralling costs have cast doubt over the viability of new oil refineries worldwide, and industry observers have been sceptical over the Jazan plan since it is a long distance from crude production facilities.

Story continues below ↓

The project is part of government plans to give an economic boost to the impoverished region of Jazan in the far south near Yemen, on the Red Sea coast.

The request for proposals is aimed at companies the ministry has vetted as qualified to build and operate the refinery.

The ministry said last year that eight Saudi and 43 international companies had prequalified to take part in the Jazan tender. State oil firm Saudi Aramco is listed as one of the prequalified international companies.

International companies interested in building the refinery must submit their bids in partnership with one of the qualified local companies.

The government unveiled plans to build the refinery in 2006 and said it would be 100 percent privately-owned, with an initial public offering to take place once the refinery was deemed viable. (Reuters)

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.

Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country

Subject *

Comment *


Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.