Arab News reported that Saudi Aramco and Sinopec Group of China took another giant leap forward with the signing of a landmark SAR 32 billion JV agreement to set up an ultramodern, highly sophisticated, full conversion oil refinery in Yanbu.
Called simply YASREF, the Yanbu Aramco Sinopec Refining Co Limited, will begin production in the second half of 2014, processing 400,000 barrels of heavy crude a day. Saudi Aramco will hold a 62.5% stake in the plant while Sinopec Group will own the remaining 37.5%.
Mr Khalid Al Falih president & CEO of Saudi Aramco and Mr Fu Chengyu chairman of Sinopec Group signed the agreement at the Saudi Aramco headquarters.
Mr Al Falih said that "This is the fourth joint venture between our two enterprises. YASREF takes its rightful place next to our two downstream companies in China's Fujian Province, and our in Kingdom upstream joint venture, Sino Saudi Gas Limited."
He added that "It holds enormous potential and promise, because it will boost the Saudi economy and create new opportunities for local enterprises and entrepreneurs."
As Asia's largest producer and supplier of oil products, Sinopec Group brings technical and commercial expertise to the joint venture while Saudi Aramco adds value with its unparalleled strengths in resources, management and host advantage.
The refinery is already under construction and will be spread over an area of 5.2 million square meters. Its giant size can be gauged from at least two facts. During the refinery’s construction more than 80,000 tonnes of structural steel will be utilized which is enough to construct a new Golden Gate Bridge; and 430,000 cubic meters of concrete will be poured into its foundation which is enough to build two Kingdom Tower buildings like the one in Riyadh.
The facility's location in Yanbu, next to two other refineries, is ideal for supplying both overseas markets and the Kingdom's fast growing Western region.
Mr Al Falih said that "The various world class local and international refining and petrochemical investments Saudi Aramco is making is proof of our firm belief that the downstream remains an attractive and profitable business. Over the next decade, our total global refining capacity is expected to approach 8 million barrels a day as a result of this largest expansion by any oil company in the world."
As Mr Al Falih pointed out, the latest joint endeavor is simply the most recent chapter in a long story of cooperation, collaboration and trade between the Arabian Peninsula and China. He said that "For many centuries, trade routes have linked these two poles of Asia, through an exchange of not only goods, but also of ideas, knowledge and culture, which led and continues to lead to greater prosperity for both of our civilizations."
(Sourced from www.arabnews.com)
