Built to inform

Sign up for the daily newsletters

No, Thank you

Saudi Arabia, South Africa ink oil refinery, petrochem complex deal

Planned new facility to be supervised by state-owned Saudi Aramco and South African National Oil Company

Saudi Arabia and South Africa has inked an agreement to explore the possibility of an oil refinery and petrochemical facility in South Africa. [representational image].
© Pixabay / Skeeze
Saudi Arabia and South Africa has inked an agreement to explore the possibility of an oil refinery and petrochemical facility in South Africa. [representational image].

Saudi Arabia and South Africa has inked an agreement to explore the construction of an oil refinery and petrochemical facility in the latter country.

According to Saudi Press Agency (SPA), the new complex will fall under the supervision and cooperation of state-owned oil giants Saudi Aramco and South African National Oil Company through a memorandum of intent (MoI) signed by both firms.

The location of the new facility will be agreed by both sides at a later date, the news agency added.

READ: Chemicals firm Lanxess completes $1.3bn sale to Saudi Aramco

The agreement was signed at a reception on 19 January, 2019 for Eng Khalid bin Abdulaziz Al-Falih, Saudi Arabia’s Minister of Energy, Industry, and Mineral Resources, and Dr Majid bin Abdullah Al-Qassabi, the kingdom's Minister of Trade and Investment. Both were received by South African President Cyril Ramaphosa.

The MoI aims to strengthen joint cooperation between Saudi Arabia and South Africa in the exploration, production, refining, storage, marketing, transportation, and distribution of oil and gas; in addition to applying modern technologies in the oil and gas industry.

It also reaffirms the strength of the trade, economic, and diplomatic ties binding the two countries and efforts exerted to further enhance and consolidate them, as reported by SPA.

The news comes amid a busy start to the year for Aramco.

READ: Malaysian marine, heavy engineering firm gains Saudi Aramco LTA spot

Larsen & Toubro Hydrocarbon Engineering and Subsea 7 won an engineering, procurement, construction, and installation order from the oil and gas behemoth in January 2019, marking the consortium’s fifth contract from Aramco.

Aramco also awarded two engineering, procurement, and construction contracts worth $1.3bn (SAR4.8bn) to Italian oil and gas heavyweight Saipem in the same month, as reported by Construction Week.

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week Middle East 11th Jan 2020
Jan 16, 2020