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February 12, 2013

Jacobs awarded contract for Luberef Yanbu refinery expansion

Gerald Ondrey

Jacobs Engineering Group Inc. (Pasadena, Calif.; www.jacobs.com) was awarded a contract from Saudi Aramco Lubricating Oil Refining Co. (Luberef) to provide project management consulting (PMC) services for an expansion project at its lube oil refinery in Yanbu, Saudi Arabia.

Officials did not disclose the contract value, however noted that the overall expansion project cost is estimated at approximately $1 billion. Jacobs' Leiden, Netherlands office is managing the overall project in collaboration with Jacobs’ offices in Al Khobar, Saudi Arabia and other locations.

Under the terms of the agreement, Jacobs is providing PMC services for both inside battery limits (ISBL) and outside battery limits (OSBL). The ISBL services include a new lube oil unit, a new sulfur complex, a new hydrogen-manufacturing unit, and an expansion of the propane de-asphalting unit. The OSBL services involve all utilities, tanks and infrastructure.

The Yanbu Refinery expansion is expected to increase base oil production to meet future demands for high quality GR-II and GR-III base oils; increase the GR-I Bright stock to almost double current production; produce higher-value byproducts (naphtha, diesel, and kerosene); and satisfy Kingdom requirements for producing drilling fluid, which is currently being imported.

Luberef, a joint venture between Saudi Aramco and Jadwa Industrial Investment, is one of the world's leading suppliers of high quality base oil.

 

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