Saudi Aramco and SABIC Integrate Crude Oil-to-Chemicals Projects

Saudi Arabia: Saudi Aramco and Saudi Arabian Basic Industries Corporation (SABIC) signed heads of agreement in order to check the feasibility for the development of an integrated crude oil-to-chemicals project in Saudi Arabia. The companies would enter into a joint venture agreement if the feasibility study is proved to be successful. Technological advancements with innovative configurations and proven conversion technologies for crude oil-to-chemicals process is expected to establish a wholly integrated petrochemical complex in the Kingdom. The fully integrated petrochemical complex, in turn, would be extensively utilized to augment the chemical yield, drive efficacies of scale and resource optimization, transform and recycle by-products and diversify the petrochemical feedstock mix in Saudi Arabia.

TechSci Research depicts that this joint venture project would lead to new job opportunities for the Saudis and aid the maximization of value from Saudi Arabia’s crude oil production, industrial diversification of the Kingdom’s economy by encouraging the establishment of downstream conversion industries that produce semi-finished as well as finished good and technological development of the country.

According to recently published TechSci Research report, “Saudi Arabia Oilfield Chemicals Market By Type, By Application, Competition Forecast and Opportunities, 2010 – 2020”, the oilfield chemicals market in Saudi Arabia is projected to surpass USD960 million by 2020. Growth in the market is expected on account of rising oil & gas production, along with anticipated growth in the exploration of shale gas deposits in the country. Saudi Arabia is home to 100 major oil and gas fields, of which 8 oilfields produce more than 50% of crude oil every year.