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.