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Saudi Aramco and SABIC Award Second Crude Oil-to-Chemicals (COTC) Project Management Contract to KBR


In a second significant step toward the implementation of Saudi Aramco and SABIC’s fully-integrated crude oil-to-chemicals (COTC) complex in Saudi Arabia, the two partners have awarded a contract to KBR, a leading global provider of project management, and professional & engineering services in the petrochemicals industry, for the COTC project management and front-end engineering and design (FEED).

The award of this contract follows the signing of an MoU in November of 2017 between Saudi Aramco and SABIC to assist in bringing the giga-project to its next stage of development.  The contract primarily covers finalization of the project scope, selection of technology providers, update on project economics, and performance of front-end engineering and design.

Commenting on this new milestone, Saudi Aramco President and CEO Amin H. Nasser said: “We are effectively moving forward with the implementation of our strategies and plans towards further integration and value creation. The award of this second project management contract to KBR not only strengthens the project with additional world-class experience, but is yet another milestone in the Kingdom’s continuous drive to redirect and optimize its abundant natural resources and maximize its chemicals yield.”  “With the addition of KBR to the project, Saudi Aramco and SABIC are confident that the right parties are now in place to see the project through its initial phases and the inclusion of a high proportion of local content,” Nasser added.

Yousef Al-Benyan, SABIC Vice-Chairman and Chief Executive Officer said: “This contract award to KBR is a major advance by the two leading industrial companies in Saudi Arabia – SABIC and Saudi Aramco – towards establishing a large petrochemical facility in support of Saudi Arabia’s vision of creating job opportunities, initiating new industrial technologies, and diversifying the product portfolio.  The acceleration of the project’s milestones signifies the determination of the joint venture partners to achieve the project objectives along with Saudi Arabia’s vision of economic diversification, to which this project is a significant contributor.”

By 2030, the COTC complex is expected to be a significant contributor to Saudi Arabia’s GDP and play a key role in helping the continued economic transformation away from crude exports to higher-value industrial products, further stimulating the Kingdom’s economic diversification, as enunciated in Vision 2030. 

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